Historical Horse Racing Bill Awaits Louisiana Governor’s Signature; HHR Also OK’ed In New Hampshire

Louisiana and New Hampshire are the latest states to embrace historical horse racing through legislative action.

In New Hampshire, Gov. Chris Sununu signed House Bill 626 into law on June 8, authorizing pari-mutuel wagering on historical horse racing at New Hampshire charitable gaming facilities that were licensed as of May 1, 2020. With horse racing no longer offered in the state, revenue generated from wagering will be allocated to the New Hampshire education trust fund and to local charitable organizations.

Also on Tuesday, the Louisiana Senate voted 32-3 in support of SB 209, a bill that would authorize up to 50 historical horse racing machines at off-track betting facilities throughout the state. The House had previously approved the measure by a 84-11 vote. The bill has language allowing HHR wagering on mobile device apps provided they are used within the confines of a pari-mutuel facility or OTB.

According to the Louisiana State Racing Commission, there are 16 OTBs currently operating in Louisiana.

The Louisiana bill, supported by horsemen's and breeders' organization in the state, now goes to Gov. John Bel Edwards for his signature.

Concerning New Hampshire, Patrick Neely, chief business development officer for Exacta Systems, said:  “We are so grateful to our primary bill sponsors, Representative Pat Abrami and Senator Harold French; longtime supporters like Representatives Fred Doucette and Jennie Gomarlo, and of course Governor Sununu for signing the bill into law. Passage of this legislation was truly a group effort, and we were pleased to play a role in a broad coalition of New Hampshire charitable organizations and charitable gaming operators. We have no doubt that HHR will prove to be as successful in New Hampshire as it is in other jurisdictions, and that it will generate significant new tax revenue and financial support for countless New Hampshire charities. Exacta looks forward to playing a role in that future success, and we are excited to announce our expansion plans and partnership agreements in New Hampshire in the coming weeks.”

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Online Historical Horse Racing Game Luckii.com Strikes Major League Soccer Marketing Deal In Oregon

Just months after launching, Luckii.com – the online game powered by Historic Horse Racing – has been named the official online gaming partner of the Portland Timbers.

Luckii and the Major League Soccer team will collaborate on in-game and on-field sponsorships, online promotions, charitable efforts and IP rights, including a soon-to-be-released Timbers-themed game.

“We are thrilled to welcome Luckii as our official online gaming partner,” said Mike Golub, the team's President of Business. “Since their launch in Oregon, we've discussed creative ways to introduce Luckii to our fans and are excited about this new multi-year partnership.”

Luckii gives players the chance to win real money and big jackpots through a variety of Vegas-style games, which follow pari-mutuel rules, and can be played at home or on the go. Since launching late last year, Luckii has paid out nearly $3M in prizes and has seen double-digit weekly growth.

Under terms of the Timbers agreement, soccer fans coming back to Providence Park this season will see Luckii promotions on the field and around the stadium, as well as regional broadcast integration for home and away games on FOX 12 Oregon and ROOT Sports. Timbers fans will also be able to participate in a number of integrated promotions on Luckii.com, including Timbers-specific prizes and branded events.

“We are excited about this groundbreaking partnership with the Timbers,” said Bill Yucatonis, President of Luckii. “The Timbers are an iconic brand in Oregon and a franchise with deep roots in the community, along with a dedicated and passionate fan base we are excited to connect with. As we move forward with plans to expand to other states, this partnership has shown us the value of engaging with Major League Soccer fan bases across the country.”

Luckii is managed by ELS Gaming – a national leader in the development of real estate, hospitality and gaming projects. They bring decades of experience – from legislation and regulation to operations and player experience – and have deep roots in the horse racing industry and online gaming.

Luckii has an exclusive agreement with industry-leader Exacta Systems to power their HHR engine and is licensed by the Oregon Racing Commission as a multi-jurisdictional Advanced Deposit Wagering platform. A portion of proceeds from Luckii.com are provided back to the horse racing industry, supporting racing, local jobs and communities.

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Legislative Fix For HHR In Kentucky Is Coming; Supporters Hope It Will Leave Committee This Week

A legislative fix for the legal question of historic horse racing (HHR) in Kentucky is on the way, according to legislators speaking at a rally held at Keeneland Feb. 1. Sen. John Schickel (R-District 11) told observers at the track and watching online that he plans to introduce a bill before a legislative committee this week that would make the HHR machines at Keeneland and the Red Mile part of the state's definition of parimutuel wagering.

The rally was organized by the Kentucky Equine Education Project (KEEP).

The Kentucky Supreme Court ruled in September that the HHR machines made by Exacta Systems do not qualify as parimutuel wagering because wagers are pooled from multiple races to determine the payout for a wager placed from a given machine. The ruling was in response to a suit brought in civil court by The Family Foundation to have the games halted. The court decided last week not to rehear the case. On Jan. 24, Keeneland and Red Mile, which both have Exacta Systems terminals installed, closed their HHR operations.

“Tonight, I'm going to appeal to your worst fears,” said Sen. Damon Thayer (R-District 17). “Our worst fear is if HHR goes away — and we've already seen it, hopefully temporarily, suspended down at the Red Mile — the result will be cataclysmic. Catastrophic. We are on the cusp of greatness in Kentucky. Now this unfortunate Supreme Court decision last fall has put a temporary straw in our pathway, and we're going to do everything we can to sweep this straw aside.”

Thayer also pointed out that there have been questions about how much of the revenue on HHR goes to the state's general tax fund, with some critics claiming the state is getting short-changed. Thayer said it's important to note that the tax rate of 1.5 percent of gross income on HHR wagering is the same rate paid by living racing and simulcasting. Thayer claimed the rates have been twisted by HHR's critics, who fail to recognize that the 1.5 percent is against the gross income before the tracks pay out to the customer and to purse accounts, and the rate actually works out to roughly 33 percent of net profits.

“You're going to see all kinds of specious arguments and wailing and gnashing of teeth as we try to get this bill passed,” said Thayer. “The opponents of this will make all sorts of wild claims. One of them will be that 1.5 percent of gross is a sweetheart deal; it's not … there's no reason for the racing industry to be ashamed of that. It's worked very well since 2014.”

Schickel took a somewhat different tack, saying that as Kentucky's signature industry, racing should get special consideration.

Both legislators said they had been asked why they weren't advocating for legalizing sports betting along with the new HHR definition, and said that it's important to consider the issues one at a time.

“There are some people who support historical horse racing who do not support sports wagering and casinos,” he said. “One of the reasons I'm so committed to historical horse racing is that the focus is on racing. My buddies at happy hour razz me all the time and say, 'John why are you giving the tracks this sweetheart deal?' And I plead guilty as charged. The reason they are is that Thoroughbred racing is our signature industry, and that's where our focus should be this session.”

KEEP executive vice president Elisabeth Jensen urged attendees to think beyond the Central Kentucky area when pushing their representatives to support HHR. Jensen pointed out that many of the people at the rally were from the same eight or ten counties surrounding Lexington, but successful lobbying will require those who are passionate about the issue to reach out to friends and colleagues in more far-flung areas.

KEEP offers an easy tool for Kentucky residents to contact their legislator about the issue and a petition for those who live outside the state to voice their opinion.

So far, Jensen said people have used the system to send 4,500 unique messages to Kentucky legislators requesting their support for HHR.

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HHR Bill With Support of Kentucky Senate President to be Filed Feb. 2

A Kentucky State Senator whose district includes Turfway Park said Thursday that he intends to file legislation and hold a hearing next week to make historical horse race (HHR) gaming legal, “maintaining the status quo” for the revenue flow that annually contributes tens of millions of dollars to purses in the state.

“Next week, I will file legislation to keep historical horse racing operational in Kentucky,” Senator John Schickel (R-Union) stated in a Jan. 28 press release first published by WTVQ.com. “The bill, which I am pleased to say will be co-sponsored by Senate President Robert Stivers, will address the recent Kentucky Supreme Court decision on pari-mutuel wagering and ensure that historical horse racing facilities are able to continue operating, while employing Kentuckians, generating state tax revenue and strengthening our signature equine industry.

“This effort is about preserving a system of wagering we've known for live racing for decades and historical horse racing for the last 10 years. This is about maintaining the status quo. Our immediate action as legislators is critical to protecting current and future jobs and economic development across the Commonwealth.

“I have long supported Kentucky's equine industry and recognize the importance of historical horse racing to its continued success. This issue is of particular importance in my district with the future of Turfway Park potentially in the balance, but if left unaddressed, the negative consequences are sure to impact the entire state. I look forward to working with my colleagues in General Assembly to address the clear legislative direction provided by the Kentucky Supreme Court,” Schickel concluded.

Schickel's statement did not disclose any specifics of the bill.

According to kentuckytoday.com, Schickel later added that he plans to file the bill Feb. 2, the first day lawmakers are back in session, and that it will have a hearing in the Senate Licensing and Occupations Committee, of which he is the chairman, on Feb. 4.

In a Sept. 24, 2020, judgment, the Supreme Court ruled 7-0 that HHR machines made by Exacta Systems do not “create a wagering pool among patrons such that they are wagering among themselves as required for pari-mutuel wagering.” The ruling also told a lower court to re-examine the legality of the most crucial form of funding for purses in Kentucky.

Although the Supreme Court case only involves HHR machines made by Exacta Systems, whose machines are in use at the Red Mile, Kentucky Downs and Ellis Park, the gaming systems operate in broadly the same manner throughout Kentucky, meaning that a precedent established for one version is likely to affect all forms of HHR. Anti-gambling advocates in Kentucky have challenged the legality of HHR since the inception of that form of gaming.

On Jan. 21, the Kentucky Supreme Court denied a petition for rehearing its September judgment, creating an apparent dead-end to the case in the courts.

Three days later, on Jan. 24, Keeneland Association and Red Mile announced they would be shutting their joint historical horse racing (HHR) venture at the Lexington harness racino while imploring the Kentucky legislature to provide “more clarity” regarding the disputed legal status of HHR.

On Jan. 26, Vince Gabbert, Keeneland's vice president and chief operating officer, said that “the measures that we took over the weekend have helped bring the urgency even more to the forefront than what we had so that the legislature understands the impact that not only racing, but HHR has on the economy in the commonwealth.”

Gabbert termed the HHR closure a “conservative” decision. It stands out because HHR venues operated by other licensees have remained operational in Kentucky.

Also on Jan. 26, Ellis Park general manager Jeffery Inman warned in a statement that “Without the revenue associated with HHR, there is no realistic path forward for Ellis Park.”

Turfway Park is currently conducting spectator-free live racing with simulcasting and HHR gaming proceeding at its satellite facility 12 miles away in Newport. But back in October, Churchill Downs Inc., (CDI), the gaming corporation that owns the tracks and HHR licenses associated with Churchill Downs Racetrack and Turfway Park, halted reconstruction on the Turfway grandstand it demolished a year ago, vowing not to continue with the planned rebuild until HHR's legality gets sorted out.

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