‘It’s Not Just The Big Guys’: Historical Horse Racing Supports Small Kentucky Tracks, Horsemen

As both the Kentucky State Senate and Kentucky House Committee for Licensing, Occupations and Administration Regulations passed SB 120 this week, Turfway Park horsemen are making their case for the importance of protecting Historical Horse Racing. They say protecting HHR, as it is known, is critical to saving Kentucky jobs, including their own.

HHR's future in Kentucky is uncertain following an opinion issued by the Kentucky Supreme Court in September. At risk is a significant revenue stream that has produced some of the best racing purses in the country, prompted track owners to make considerable facility investments and bolstered a year-round racing circuit on which Kentucky horsemen have come to depend.

Trainer Buff Bradley, a Kentucky native, left the state 11 years ago to winter in Florida and then New Orleans because purses had gotten so bad at Turfway Park. After purses increased last year, he convinced owners to stick around Kentucky.

“I was hoping Kentucky was going to be a stronger circuit, with Ellis doing well,” said Bradley. “It really looked like Turfway was going to be on the rise with Churchill buying it and purses increasing. Now I'm rethinking, 'Uh oh. I came here and it might have been too soon,' because things aren't looking as well with Historic Horse Racing machines maybe not going through. That's going to be the big question.

“Kentucky can be a great circuit,” he said. “I know last year everybody was thrilled. You've got owners who see a rising Kentucky, even with Ellis Park and Turfway's purses being better, they can afford to stay around here. And they live here. If they can do that, they're going to go to the sales and buy more horses. If we can keep more horses around here, we can keep everybody busy – more jobs. There's a lot to it.”

Bradley employees 12 people in his 20-horse stable at Turfway.

“The money has made a big difference,” he said. “It's not like we're getting rich off this, but it makes it affordable for people to stay and to meet people to buy horses. It's become a year-round circuit in Kentucky, which is a big plus. Because you keep the people here. This is our home.

“If we don't have HHR, I can see racing really decreasing here in the state. Horse racing will go down to Keeneland and Churchill basically. I can't see how Turfway, Ellis Park – those two tracks for sure – and even Kentucky Downs could survive. We'd probably decrease the number of days even at Keeneland and Churchill. And when that happens, it's tough to get stables to come in because there isn't going to be much racing. They're going to go to New York and Florida, areas where they have racing throughout the year.”

Groom Toni Ouzts, who has two children with her husband, veteran jockey Perry Ouzts, is concerned that if the Kentucky House does not pass the HHR bill, life will be more difficult for them.

“I need this job,” she said. “It's my livelihood. It's my passion. I'd be lost without it. And my husband would be out of work, too, if we would not have Turfway Park.”

Asked about people who would say that HHR just makes rich people richer, she said: “No. This is keeping me in a job. It's keeping my husband in a job, people I work with every day. We work seven days a week. This is more than a job. It's everything. My sister and I work here 'rubbing' horses together. And even her husband works on the front side. It's giving everyone a job.”

When discussing the potential of Turfway likely shutting down unless the HRR bill passes, she said she is surprised that Turfway's existence is even in doubt and it makes her sad.

“It's scary. It really is scary.”

Turfway “gives so many people job,” she said. “So many people would be out of work. Just think of the hay and straw people, the feed man. There's so much involved in horse racing. It's not just the big guys.”

Trainer Jeff Greenhill left a career as chemical engineer in Alabama to go into horse racing. He's been training about 25 years, wintering at Turfway Park throughout.

“This is the place that the little guy survives — here and Ellis Park,” Greenhill said. “There are 1,100 horses here, and I've got 18 and I have eight employees. You can do the math: There are a whole lot of people here employed by the horse-racing industry. Unless purses stay at a reasonable level, I'm out of business or I'm moving to New York, Florida or Indiana.”

Veterinarian John Piehowicz, who has served clients on the local racing circuit since the early 1990s, also sees difficult choices ahead without historic horse racing.

“If SB120 isn't passed then I think this (Turfway Park) is done,” he said.

Piehowicz says racing “is the one industry where trickle-down economics works. If you look around the racetrack here, there are a lot of people who depend on the horses, depend on the income – whether it's a Sunoco station around the corner where half the people who work here go and buy their snacks or the local community. When this place closes it's going impact more than horse racing in the state of Kentucky.”

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Vote on HHR By Full KY House Could Come Thursday

A vote on the fate of historical horse race (HHR) gaming in Kentucky by the full House of Representatives could come as early as Thursday after lawmakers Wednesday morning continued to fast-track the “emergency” Senate bill to legalize the slot machine-like form of betting by defining “pari-mutuel wagering” to include previously run races.

About 17 hours after SB 120 passed the full Kentucky Senate by a 22-15 vote, the proposal sailed through the House Licensing, Occupations and Administrative Regulations Committee Feb. 10.

Representative Adam Koenig (R-Erlanger), who chairs that committee, said after the bill cleared his committee that the earliest it could be debated and voted upon on the House floor is Feb. 11.

“There are some more conversations to be had in our caucus,” Koenig told Casino.org reporter Steve Bittenbender via text message.

If the vote doesn't happen Thursday, the next earliest date on Kentucky's legislative calendar for the House to be in session is Tuesday, Feb. 16. This Friday is marked as a “draft day” for lawmakers, and the traditional weekend off extends through Monday next week because of the Presidents Day holiday.

Proponents of the bill are aiming to align HHR in a way that they believe will make the slots-like form of gaming constitutionally legal so the machines can keep generating $2.2. billion in annual handle. The Kentucky Thoroughbred Development Fund's purse-money cut from HHR is three-quarters of 1% of that handle.

HHR was put into peril Jan. 21, when the Supreme Court of Kentucky denied a petition for rehearing an earlier judgment that called into question the legality of HHR because it didn't amount to “pari-mutuel wagering.” The question over that legal definition, led by anti-gambling activists, has worked its way through the court system ever since HHR was first allowed by the state in 2012.

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Kentucky HHR Bill Passes House Committee, On To House Floor

Senate Bill 120, which would expand Kentucky's definition of parimutuel wagering to include historical horse racing (HHR) machines, unanimously passed the House Committee for Licensing, Occupations and Administration Regulations on Wednesday morning.

The bill passed the state senate Tuesday afternoon on a vote of 22-15.

The house committee heard from a nearly identical group of proponents and opponents to the bill as the Senate Committee on Licensing and Occupations last week. The house committee is chaired by Rep. Adam Koenig (R-District 69), who is also the legislative representative on the Kentucky Equine Drug Research Council, a committee of the Kentucky Horse Racing Commission. The senate committee is chaired by Sen. John Schickel (R-District 11) who is the bill's sponsor and also fielded questions from members of the house committee.

Horseman Tommy Drury provided the committee with his outlook on the way the cash influx from HHR has kept his business afloat, while representatives from The Family Foundation expressed a variety of concerns, framing the bill as a “millionaire's bailout” and citing concerns about the constitutionality of the bill's treatment of parimutuel wagering.

The bill's supporters have repeatedly expressed the reliance of Kentucky's racing industry on the increased purses and breeders' incentives from HHR income, with particular focus on the many jobs supported by that revenue and the secondary industries that rely on racing for business.

There are a few different points of opposition expressed by legislators who spoke against the bill during its senate vote Tuesday; some question the tax structure for HHR income, saying the state does not benefit enough from the income. Others believe a constitutional amendment is the only sure way to make HHR legal because the definition of legal gambling in Kentucky is outlined in the state's constitution. Still others have concerns about the potential for gambling addiction among HHR users, which they say disproportionately impacts poor families.

Early reports have indicated the bill could face more opposition in the house than it did in the senate. The bill may now go to the House floor for a vote, though it's unclear when that will happen. Wednesday begins the thirteenth day of the Kentucky General Assembly regular session, which is limited to 30 days this year.

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Kentucky Senate Passes Historical Horse Racing Bill; Legislation Moves To House Next

The Kentucky State Senate passed the Historical Horse Racing Bill, Senate Bill 120, by a margin of 22-15 on Tuesday, Feb. 9.

The Kentucky Equine Education Project (KEEP), Kentucky's equine economic advocate, released the following statement:

“We applaud the Senate for voting to keep historical horse racing in Kentucky and protect important jobs and investment in communities across the commonwealth. Senator John Schickel and Senate President Robert Stivers have been instrumental in moving this legislation forward, and we thank them for their efforts. Now, we are calling on our elected officials in the House to bring SB 120 to passage so that historical horse racing can continue in the commonwealth, just as it has for the last decade.

“The future of the horse industry and Kentucky's economy is in legislators' hands, and real jobs and livelihoods are at risk. Tens of thousands of Kentuckians rely on the equine industry to make a living and provide for their families—many of whom have already sent messages and made calls to their legislators asking them to vote yes on this critical legislation. They are your neighbors, family members, colleagues and friends. We hope that legislators will keep these individuals in mind as they discuss SB 120 in the coming days. A vote to keep historical horse racing in Kentucky is a vote for Kentucky families and the industry that supports them.”

The bill will be heard in the House Committee on Licensing, Occupations & Administrative Regulations before heading to the House floor for a vote.

The Kentucky Supreme Court issued a unanimous decision on historical horse racing machines on Sept. 24, 2020, deeming one particular brand to not constitute pari-mutuel wagering. When the Court declined to reconsider that decision in January, both Keeneland and Red Mile temporarily shut down historical racing operations.

Senator Schickel and Senate President Stivers introduced Senate Bill 120 on Feb. 2. It defines pari-mutuel wagering to be consistent with how the Kentucky Horse Racing Commission has regulated live racing for decades and historical horse racing for the last ten years. The legislation also reaffirms that only pari-mutuel wagering on simulcasts of live racing can occur at simulcast facilities. In effect, this maintains the status quo that Kentucky has known for the last decade, ensuring HHR venues can continue or resume operations.

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