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Kentucky State Senate Resolution ‘Urges’ Federal HISA Funding Review

Kentucky's state senate adopted a resolution by voice vote Mar. 29 that will “urge” the overseers of the Horseracing Integrity and Safety Act (HISA) and elected federal politicians “to review the funding methodology of HISA and ensure that they provide uniform treatment to all states,” according to a summary of the measure posted on the web page of the Kentucky General Assembly.

Senators Damon Thayer and John Schickel sponsored the resolution, which was both introduced and passed on Wednesday.

The resolution describes itself as a means of “expressing concerns regarding the unintended consequences of the current funding methodology of HISA.”

A phone message left for Thayer on Thursday seeking details about what impact he believes the state resolution might have at the federal level did not yield a return call prior to deadline for this story.

The text of the resolution reads as follows:

“WHEREAS, the Senate recognizes the need for the safety and welfare of horses and jockeys, confidence in the fairness of competition, consistent oversight and regulation, and national uniformity and harmonization in the rules of the horse racing industry; and

“WHEREAS, the Senate believes that HISA, IF implemented properly, can achieve these objectives and enhance the reputation of horse racing in the United States; and

“WHEREAS, the Senate is aware that concerns have been raised by others regarding the unintended consequences that may arise from the current funding methodology, which does not provide uniform treatment to all states and may place undue economic pressure on horsemen and the racing industry in Kentucky; and

“WHEREAS, the Senate acknowledges that it is important to the prosperity of Kentucky horse racing that the safety of the human and equine athletes and the integrity of the sport be paramount;

“NOW, THEREFORE, Be it resolved by the Senate of the General Assembly of the Commonwealth of Kentucky:

“1. The Kentucky Senate urges the Federal Trade Commission and the HISA Authority to review the funding methodology of HISA and ensure that they provide uniform treatment to all states.

“2. The Clerk of the Senate is directed to transmit a copy of this Resolution to the Commissioners of the Federal Trade Commission, the Board of Directors of the HISA Authority, the Speaker of the United States House of Representatives, the Majority Leader of the United States Senate, and Kentucky's Congressional delegation.”

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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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Senate Committee Will Hear Testimony Supporting Historical Horse Racing Bill Thursday

Today at 11 am EST, the Kentucky State Senate Committee on Licensing & Occupations will hear testimony in support of Senate Bill 120, legislation to keep historical horse racing in Kentucky.

The legislation was introduced earlier this week by Senator John Schickel and Senate President Robert Stivers and is backed by a broad coalition of horse industry, business, economic development and tourism organizations, including the Kentucky Equine Education Project (KEEP), which released a statement on the bill earlier this week.

SB 120 seeks to address a recent Supreme Court ruling by maintaining the status quo Kentucky has known for the past decade so that historical horse racing can continue in our state. HHR has led to significant job creation, community investment and economic development in communities across the commonwealth.

Testimony will be provided by:

Sen. John Schickel, bill sponsor
Kelli Pendleton, president/CEO, Christian County Chamber of Commerce
Tom Drury, horse trainer
Marc Guilfoil, Kentucky Horse Racing Commission

The committee will meet in Annex Room 171 in Frankfort and will be streamed live at ket.org/legislature.

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Kentucky’s HHR Bill Hinges on Definition of ‘Pari-Mutuel Wagering’

The legislative fix to legalize historical horse race (HHR) gaming in Kentucky will hinge on a one-paragraph definition of “pari-mutuel wagering” that a bipartisan group of state senators want added to an existing list of definitions that pertain to regulating horse racing.

The text of SB120 was posted online Feb. 3, one day after the bill was introduced.

Senator John Schickel crafted the statutory attempt to keep HHR operational, and his measure has the backing of Senate President Robert Stivers, Senate Majority Leader Damon Thayer, plus five other legislators listed on the co-sponsor page of the bill.

Their effort will try to preserve what has grown into a $2.2-billion annual handle source that has bolstered Kentucky's purses over the past decade (the Kentucky Thoroughbred Development Fund's purse-money cut from HHR is three-quarters of 1% of that handle).

This source of funding was put into peril on Jan. 21, when the Kentucky Supreme Court 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 fight 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.

Although the six-page bill includes a handful of other line items or word changes that pertain to how properties and premises are defined, the crux of the bill relates to a new definition of “pari-mutuel wagering” that has been inserted in an alphabetical list of terms where no definition previously existed. It reads:

“Pari-mutuel wagering,” “pari-mutuel system of wagering,” or “mutuel wagering” each means any method of wagering previously or hereafter approved by the racing commission in which one (1) or more patrons wager on a horse race or races, whether live, simulcast, or previously run. Wagers shall be placed in one (1) or more wagering pools, and wagers on different races or sets of races may be pooled together. Patrons may establish odds or payouts, and winning patrons share in amounts wagered including any carryover amounts, plus any amounts provided by an association less any deductions required, as approved by the racing commission and permitted by law. Pools may be paid out incrementally over time as approved by the racing commission.

Schickel said before he filed the bill that it will have a Feb. 4 hearing in the Senate Licensing and Occupations Committee, of which he is the chairman. That Thursday hearing, however, was not yet posted on the committee's online calendar before the late-afternoon Wednesday deadline for this story.

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