Kentucky Groups Hope HHR Legislation Allows For ‘Long-Overdue Restoration’ Of Quarter Horse Racing

Two statewide breed organizations, the Kentucky Quarter Horse Association (KyQHA) and the Kentucky Quarter Horse Racing Association (KyQHRA), are united in withholding a position regarding proposed legislation to maintain the status quo for operators of Historical Horse Racing (HHR) facilities.

While there are over 10,000 owners of more than 30,000 Quarter Horses confirmed across all 120 counties, and while Quarter Horses have long been a wholly legal pari-mutuel racing breed in the Commonwealth, no licensed track offers so-called “sprint racing.” As a result, no portion of earnings from HHR terminals is of benefit to Kentucky owners and breeders of Quarter Horses.

The KyQHA is the official state affiliate of the American Quarter Horse Association (AQHA), the world's largest equine registry, while the KyQHRA is designated by statute as the horsemen's organization for Quarter Horse racing. Yet, in spite of the enormous popularity of
Quarter Horse racing at two Kentucky racetracks in the 1980s, there have been no Quarter Horse racing opportunities of consequence in over 30 years – when a political battle over the right to simulcast (BOPTROT) enabled other breeds to crowd out sprint racing. Given that the Legislature granted Quarter Horses legal status as a racing breed similar to others, this history of a lack of access to racing days for three decades suggests discrimination.

“The Quarter Horse industry has not been afforded an opportunity to review proposed legislation relating to future changes in law pertaining to the legality of HHR terminals,” said Keith Kleine, KyQHA president. “Until such time as the proposed legislation is seen by our industry, and it includes some kind of stake and engagement in the process for our breeders and owners, the KyQHA will not be taking a formal position on HHR.”

Richard Connelley, DMD, the Kentucky Quarter Horse Racing Association president, commented: “At such time as details of the proposed legislation are known by KyQHRA and KyQHA, the determination of our industry to support it will likely be based upon whether the legislation contains any features or language that indicate some clear path to the long-overdue restoration of pari-mutuel Quarter Horse racing to Kentucky.”

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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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Romans: Historical Horse Racing A Game-Changer For Good In Kentucky

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?

Dale Romans has trained in his native Kentucky since 1986, racing extensively at the commonwealth's five thoroughbred tracks and reigning as Churchill Downs' all-time win leader for 2 1/2 years until being surpassed by Steve Asmussen last June. Romans, the recipient of the 2012 trainer Eclipse Award, has won 2,076 races, including the 2011 Preakness Stakes with Shackleford and three Breeders' Cup races. He is a vice president of the Kentucky HBPA, which represents owners and trainers at the state's thoroughbred tracks.

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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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