No Handout: Just A Level Playing Field

As the calendar turns to February and the countdown continues towards the adjournment of the Kentucky State Legislature on March 30, 2021, the Kentucky HBPA hosted a media event Tuesday morning at Skylight Training Center to get the word out on what Historical Horse Racing means to Kentucky racing and the impacts that would be felt by citizens across the Commonwealth if it were not protected by state legislature.

Certain Historical Horse Racing (HHR) machines, electronic gambling systems that allow people to bet on replays of past horse races, cannot continue unless the Kentucky Supreme Court creates  legislation to allow them to qualify as pari-mutual racing per the definition they alone can define.

Local Louisville-based television stations were on hand to hear the stories of several people who have built their careers in racing as they explained how their lives would change if a solution was not found to maintain the status quo for historical horse racing facilities.

Trainer Tom Drury, who has been in the spotlight in recent months with 2020 GII Blue Grass S. winner Art Collector (Bernardini), bases his outfit at Skylight and hosted the event outside his barn.

“I think the average person in Kentucky obviously knows of the Derby and they know Keeneland, but there are some that don't realize that Kentucky racing happens year round,” he said. “For me as an individual, I've got a family here so being able to travel around the country is just not something that's feasible for me.”

Drury said that this issue is not only relevant to horsemen, but to the entire equine industry. He explained how he has used the same hay farmer outside of Louisville for over 15 years  and spoke of the local tack shop where he purchases all his stable's feed and supplies.

“The trickle-down effect that the equine community has is going to affect us all,” he said. “There are a lot of people that rely on horse racing to feed their families. It even trickles down to Skylight Country Store, where my employees have lunch after work. This is something that has to go through in order for us to survive.”

Along with the direct effect that would be felt by the equine community, Drury said the entire state would be negatively impacted.

“You're talking about 100,000 jobs in Kentucky,” he noted. “And that's just the equine part of it. When you start looking at the people who work at the racetracks- the parking attendant, the people who sell programs, the people who work in concessions, this is huge for the state of Kentucky.”

He continued, “I think the frustrating part of it for horse trainers is that we're not asking for a bailout or a handout, we're just asking for a level playing field to be able to compete with the rest of the country. We want to stop losing our horses to other places because they have the expanded gaming and things of that nature.”

Even with the purse benefits obtained through HHR, Drury said that keeping owners in Kentucky has been an increasing challenge.

“I think the big majority of owners would love to have their horses in Kentucky year-round, or at least the Kentucky owners would,” he said. “Most of them are very passionate about their horses. They want to go to the races and watch their horses run. The last few years have really came down to a dollars-and-cents thing. If you can run at Turfway Park for $30,000 versus going to Oaklawn and running for $80,000, it's hard to tell a man not to move his horse. The playing field is so uneven right now for the state of Kentucky and it's frustrating at times because we're supposed to be the leaders of this industry.”

Jockey Declan Cannon has traveled the Kentucky circuit for the past five years. The Irishman spoke on the global perception he's seen of Kentucky racing.

“I've only been here five years but I've had so many conversations with people I've met on planes and when they ask where you're going and you say Kentucky, they know that's the home of horse racing. It's a great place to be and it's so important that we keep it protected.”

If Historical Horse Racing were to leave Kentucky, Cannon said that he too would be forced to go.

“It's my living, it's all I know to do,” he said. “For me, it's a huge effect and it will be for a lot of other people too, so hopefully the right thing is done.”

Gary Churchman has been a farrier in Kentucky for over 40 years. He's worked for Drury along with Dale Romans and other local horsemen his entire career. While he did travel to Florida and New Orleans for about four years, ultimately he chose to stay home for the majority of his career.

“My father was a horse trainer and I've worked for many top-tier outfits,” he said. “I've rased a couple of sons and put them through college with this industry. It's been good to me and I want that for all my friends, but it's going the wrong way.

Churchman estimated that roughly 40 farriers work on the backsides of both Louisville and Lexington, although some do travel during the wintertime.

“They talk about all the jobs here in Kentucky, but I don't like statistics and numbers,” he said. “It's lives. It's people. People who raised their families and are putting them back into this industry. Like Tommy said, we don't want to be bailed out, we just want a leg up. These are good people, and people [outside of the industry] don't understand how big of a team it takes to get these horses to the races.”

Marty Maline, the executive director of Kentucky's HBPA, spoke on those who would be most impacted if Kentucky trainers started to look elsewhere to race.

“We have a contingent of people who race at Belterra in the summer and Turfway in the winter,” he said. “There are hundreds of grooms and hotwalkers who live on the backside. If all of a sudden Turfway ceases to be, they will be homeless during the wintertime because their home in the winter is a tackroom at Turfway. Trainers can move their outfits, even though it would be difficult, but what happens to all those people? They want to work. Seven days a week they get up in the freezing cold to take care of horses that they love. It's their job, and not only that, it's their home.”

When the announcement was made last October that the construction of Turfway Park's new grandstand and historical racing machine facility would halt until the HHR ambiguity was sorted out, Maline said that reality set in for many Kentucky trainers.

“Anyone who's been to Turfway knows that Churchill Downs had grand plans to rebuild the whole structure and redo the whole barn area,” he said. “We have leaking tack rooms and a lot of problems on the backside. All that was going to be remedied by the revenue they were going to see from HHR. So right now the horsemen are dealing with the most difficult of situations as there's no facility. The backside is there, but the facility is gone.”

Drury echoed the uncertainty felt by many Turfway trainers in the past months.

“We've been struggling at Turfway for years and all of a sudden Churchill comes out that they're buying it and there's this excitement in the air and people are thinking that finally this is going to go the right way,” he recalled. “You've got guys that normally leave the state in the winter and are suddenly making arrangements to stay here and be back in their own home year-round. Now it kind of feels like the rug got pulled out from underneath us. I can't stress enough how there are so many little guys out there that don't have the luxury to go to Gulfstream or Oaklawn. They rely on Kentucky to feed their families. Without this being addressed, there's going to be a lot of them that aren't going to make it.”

Maline has been in touch with management from tracks across the state and said none have had a positive outlook on if HHR funding were to cease.

“If this isn't resolved, I talked to Ellis Park's management just last week and in no uncertain terms, they're gone. Kentucky Downs will cease to be and it's a pretty good indication that when Churchill stopped all construction, if this doesn't get resolved, Turfway will be cease to be. These are not just idle threats by horsemen, these are real concerns.”

Maline added that his team has already been in touch with the Ohio HBPA, explaining that if the situation gets worse, Ohio's program would also be hurt as the number of trainers who race at Belterra Park in the summer would decrease significantly.

When asked what sentiments he's seen expressed from horsemen across the state, Maline said that most people have been more confused than angry.

“They're so concerned that this has to be resolved,” he said. “It hard for people to understand because they mention that horse racing in so many states benefits from casinos. So here we had an opportunity- HHR is based on horse racing, it has a racing motif to it, so it's our vehicle to get finances rolling into our sport. It's very hard for them to understand, what happened?”

Steve Wade is the owner of Skylight Supply, a tack shop located a few miles down the road from Skylight Trainer Center. The store has been a family business since 1985 and Wade said he is a fourth-generation horseman. Without the training center in Goshen and other Thoroughbred farms and training outfits in the surrounding Louisville area, Wade said their business would be forced to close.

“The Thoroughbred industry is the largest amount of business we do,” he said. “If it weren't for Tommy [Drury] and every other trainer, we wouldn't exist and I wouldn't be doing this any longer. This is in our blood, our DNA. It's all we've ever known and it's very devastating to think it could end.”

 

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Letter to the Industry: Coolmore Calls on Industry for HHR Support

Dear Friend of Coolmore America,

As a valued client and friend of Coolmore America we need your help to take action and keep the Kentucky thoroughbred business strong and vibrant. Due to a recent ruling by the Kentucky Supreme Court the future of the horse business in Kentucky along with the more than 60,000 jobs and more than $5.2 billion in economic impact is now at a crossroads and in jeopardy.

Over the last decade historical horse racing has helped the horse industry flourish and has created thousands of jobs and cemented Kentucky as the capital of the horse racing and breeding world. We need your help to contact state legislators here in Kentucky and tell them what the Kentucky horse industry means to you, your family, your business and your life.

The horse business in the United States needs a strong Kentucky and our legislators need to hear from YOU!

Please follow the steps below and let Frankfort hear your voice.

Kentucky Residents

  1. Visit www.horseswork.com
  2. If you are a Kentucky resident click on “Send a message to your legislator”.
  3. Compose your unique message to your local legislators telling them what the horse business means to you.
  4. Once you enter your contact details your local legislators will automatically populate.
  5. Hit send message.

Non Kentucky Residents

  1. Visit www.horseswork.com
  2. If you are a non-Kentucky resident click on “Sign our petition”.
  3. Fill in the 3 fields
  4. Hit “submit”.

Best wishes,

Coolmore America

The post Letter to the Industry: Coolmore Calls on Industry for HHR Support appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

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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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Dale Romans Op/Ed: Historical Horse Racing a Game Changer

As a second-generation horse trainer and Kentuckian, my entire life has been spent in Thoroughbred racing. I've seen Kentucky racing at its finest, and I've seen how quickly out-of-state competition can render us increasingly irrelevant. Right now Kentucky is at the top. But it doesn't have to stay that way.

I currently have 50 employees and do business with more than 100 vendors in Kentucky alone. Without Historical Horse Racing (HHR) revenue supplementing the purses for which our horses compete, many of those jobs will have to leave the state, as will our business with all those area vendors.

People forget, but it wasn't that long ago that Kentucky racing was badly hemorrhaging amid regional and national competition for horses. As more horse owners and trainers opted to race at tracks with purses fueled by slots and casino gaming, Ellis Park's summer meet and Turfway Park's winter racing were on life support. Even legendary Churchill Downs and Keeneland struggled with a profound horse shortage. Our breeding farms suffered from an exodus of mares they'd previously boarded, leaving the Bluegrass for states with more meaningful incentives–supported by revenue from racinos and casinos– for horses foaled in those jurisdictions.

First introduced by then-struggling Kentucky Downs in 2011, Historical Horse Racing proved the game-changer for good, reversing the downward spiral for Kentucky's signature industry. HHR is not a subsidy for horse racing. It's an innovative, racing-based product that reinvests in our iconic industry. This is one of those win-win-win situations that has benefitted the whole state. It has sparked significant economic development and creates and preserves jobs.

Purses are the universal language of horsemen. We follow the money. And where our horses go, so go the jobs. American horse racing is not the sport of kings. It's the sport of thousands of stables operating as local businesses employing real people in communities across the country.

Horse racing is an extremely labor-intensive business; you're never going to automate caring for a horse. And that's a good thing. We want it to be labor intensive and give people the opportunity to work in our industry.

Because of Historical Horse Racing and combined with our quality of life and affordable housing, Kentucky is now the mecca for horsemen. Trainers and jockeys on both coasts are increasing their presence in Kentucky, if not making it their primary base. Ellis Park and Turfway's barns are full for their meets, as are area training centers. The horses occupying those stalls reflect added jobs.

Within the short period of time in which it has been up and running, HHR has completely changed the dynamics of racing on a national level, with Kentucky once more at the forefront.

This provides a huge boost for the entire economy of Kentucky, not only horse racing. Just ask the mayors and county judge executives in Henderson and Simpson counties what HHR has meant for their communities. Historical Horse Racing has brought entertainment dollars back to Kentucky, with HHR operations themselves employing 1,400 people in six cities. Our racetracks have invested nearly $1 billion the past 10 years in capital projects with another $600 million planned.

Make no mistake, that will change for the worse if the Kentucky Legislature doesn't act to protect HHR. It needs to follow the simple blueprint the Kentucky Supreme Court provided to address its constitutionality concern.

It is not hyperbole to say three of our five Thoroughbred tracks will close without HHR: Ellis Park, Turfway Park and Kentucky Downs. Harness racing will be history. Jobs will evaporate, millions of economic development and tourism dollars lost.

Whether you approve of alternative gaming or not, it is right here in our market–just across the border in Ohio, Indiana, Illinois, West Virginia and not far away in Pennsylvania. The majority of Kentucky's population can get to a casino to gamble within 30 minutes.

Kentucky's horse industry has a $5.2 billion economic impact and employs 60,000 people directly or indirectly. The commonwealth's racetracks pay more than $100 million annually in state and local taxes. Out-of-state money flows into Kentucky's coffers as a result of horse racing and its economic driver, HHR.

Do we want to needlessly sacrifice that?

It's important to have a year-round, consistent racing circuit in Kentucky. Without HHR, Kentucky racing will be an afterthought in a very quick period of time. Legislators must ask themselves: Can we afford that?

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