Keeneland, Red Mile Temporarily Closing Historical Horse Racing Gaming Room

The Keeneland Association and Red Mile issued a joint statement on Sunday saying the two Lexington, Ky., companies were temporarily shutting down historical horse racing (HHR) gaming machines at The Red Mile harness track. The closure, which takes effect at the end of business on Sunday, comes in the wake of a decision last week by the Kentucky Supreme Court not to rehear the case in which the court found in favor of the Family Foundation by a 7-0 decision, saying Exacta Systems HHR games do not qualify as pari-mutuel wagering because wagers are pooled from multiple races that determine the outcome of a bet made at a specific machine.

“We were disappointed the Kentucky Supreme Court denied our petition for rehearing,” the statement said. “At this time, Keeneland and Red Mile have made the very difficult decision to temporarily close historical horse racing operations until there is more clarity surrounding the situation. We have confidence the Kentucky legislature will continue its efforts to protect jobs and state revenue generated by historical horse racing, as well as protect Kentucky's signature horse racing industry.”

Promotional materials from Red Mile Gaming & Racing indicate the facility has 138 themed HHR games on which to bet. Sixty-eight of those games are from Exacta, with the remaining machines distributed by Ainsworth and Parimax.

In the wake of the September Supreme Court ruling, Exacta officials said they would make software adjustments to meet the Supreme Court standards.

None of the other HHR operators in Kentucky have indicated they would shut down while awaiting legislative action. Churchill Downs Inc.'s Derby City Gaming in Louisville and Oak Grove Gaming and Racing in Christian County both use Ainsworth games, which were not in place when the Family Foundation suit was filed in 2012. Kentucky Downs in Franklin, Ky., the first track to embrace HHR, also remains open.

Historical horse racing has added millions of dollars to Kentucky purses annually since approved by the Kentucky Horse Racing Commission in 2010.

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Legislative Fix For HHR Still Unclear In Kentucky; No Bill Pre-FiledYet

According to The Louisville Courier-Journal, the future of the horse racing community in Kentucky could be at stake after a recent state Supreme Court ruling on historical horse racing (HHR). The supreme court dealt a blow to the racing industry in September when it ruled that one manufacturer's HHR terminals don't comply with the legal definition of pari-mutuel wagering in the state.

Supporters and opponents of HHR appeared before the General Assembly's Interim Joint Committee on Licensing, Occupations and Administrative Regulations to discuss the path forward for HHR.

Racing industry representatives warned that the loss of HHR would seriously cripple Kentucky's Thoroughbred industry. The machines have provided $717 million in direct revenue to the horse industry so far.

Representatives from the Family Foundation, which brought the original suit questioning the legality of the machines, say a constitutional amendment would be required to change the state's definition of pari-mutuel wagering to accommodate HHR. The group opposes the machines, which resemble slot machines but use video of previously-run races to determine winning number combinations.

Senate Majority Floor Leader Damon Thayer disagreed.

“We're not looking for an expansion of gambling here,” Thayer said. “All we're looking to do is to put in statute that historical horse racing meets the definition of pari-mutuel wagering and this body has the authority to do that.”

As of Monday, no bill had been prefiled by a legislator regarding pari-mutuel racing in Kentucky. The next legislative session begins in January.

Read more at courier-journal.com.

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