HHR Bill Introduced in Kentucky State Senate

Kentucky State Senator John Schickel and Kentucky Senate President Robert Stivers introduced Senate Bill 120 into the Kentucky State legislature late Tuesday with the goal of keeping historical horse racing in Kentucky and ensuring the future of Kentucky's signature equine industry.

“KEEP applauds Senator Schickel and Senate President Stivers for Introducing Senate Bill 120, Legislation to Keep Historical Horse Racing in Kentucky,” read a KEEP press release issued late yesterday.

“In response to the Supreme Court's ruling on historical horse racing, the legislation will define 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 10 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 that are so beneficial to the horse industry and statewide economy.

“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,” Schickel said last week, as he prepared to introduce the legislation. “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.”

A ruling in September by the Kentucky Supreme Court stipulated that many of the state's machines do not constitute pari-mutuel wagering and were therefore not allowed. It also required that legislation be introduced to uphold the existing definition of the games as pari-mutuel before the end of the legislative session Mar. 30. The original lawsuit against HHR was brought by the Family Foundation, a conservative organization opposed to gambling and its expansion. Members of the racing industry argue that the loss of revenue would be crippling to racing in Kentucky.

“We applaud Sen. Schickel for championing Senate Bill 120, which will keep historical horse racing in Kentucky and protect critical jobs, economic investment and state revenue at a time when they are needed most,” said the statement from KEEP. “We also thank Senate President Stivers for his support as a co-sponsor of this important legislation. The Kentucky Supreme Court gave the General Assembly clear direction to preserve the status quo, and SB 120 gives us a path forward.

“Historical horse racing is an integral part of Kentucky's signature equine industry and our economy as a whole and has helped position Kentucky as a worldwide leader in racing. With real jobs and investment on the line, we urge the members of the Senate Licensing and Occupations Committee to promptly move this legislation forward so that the commonwealth can continue to benefit from historical horse racing, now and in the years to come.”

SB 120 is set to be heard in the Senate Licensing and Occupations Committee at 11 a.m. Thursday, Feb. 4.

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Kentucky Senators Introduce Historical Horse Racing Bill ‘To Preserve The Status Quo’

The Kentucky Equine Education Project (KEEP), Kentucky's equine economic advocate, applauds Senator John Schickel and Senate President Robert Stivers for introducing Senate Bill 120 today, which will keep historical horse racing in Kentucky and ensure the future of our signature equine industry.

In response to the Supreme Court's ruling on historical horse racing, the legislation will define 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 that are so beneficial to the horse industry and statewide economy.

KEEP issued the following statement regarding the legislation:

“We applaud Sen. Schickel for championing Senate Bill 120, which will keep historical horse racing in Kentucky and protect critical jobs, economic investment and state revenue at a time when they are needed most. We also thank Senate President Stivers for his support as a co-sponsor of this important legislation. The Kentucky Supreme Court gave the General Assembly clear direction to preserve the status quo, and SB 120 gives us a path forward.

“Historical horse racing is an integral part of Kentucky's signature equine industry and our economy as a whole and has helped position Kentucky as a worldwide leader in racing. With real jobs and investment on the line, we urge the members of the Senate Licensing and Occupations Committee to promptly move this legislation forward so that the commonwealth can continue to benefit from historical horse racing, now and in the years to come.”

KEEP is joined by a broad coalition of industry, business and economic development groups in support of the bill and has been encouraging Kentuckians to contact their elected officials regarding the legislation. SB 120 is set to be heard in the Senate Licensing and Occupations Committee at 11 a.m. on Thursday, Feb. 4.

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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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Kentucky State Senator Announces Plans To File Legislation In Support Of Historical Horse Racing

Kentucky State Senator John Schickel (R) announced Thursday that he plans to file a bill supporting Historical Horse Racing during next week's legislative session, which resumes on Feb. 2, reports wtvq.com. Schickel's district includes Northern Kentucky racetrack Turfway Park, owned by Churchill Downs, Inc.

“Next week, I will file legislation to keep historical horse racing operational in Kentucky,” Schickel said in a statement. “The bill, which I am pleased to say will be co-sponsored by Senate President Robert Stivers (R), 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 ten 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.”

The Kentucky Supreme Court issued a brief statement last Thursday in which it declined to reconsider its unanimous decision on historical horse racing machines issued on Sept. 24, 2020. In response, both Keeneland and Red Mile temporarily shut down historical racing operations over the weekend.

The Kentucky Equine Education Project has plans to host a live panel on Historical Horse Racing at Keeneland Racecourse on Feb. 1.

Read more at wtvq.com.

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