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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Ten New Scholarships To Incentivize Equine Studies In Kentucky

The Kentucky Equine Education Project (KEEP) Foundation has announced the allocation of $20,000 in scholarships to students pursuing equine studies or a related field within the state of Kentucky.

Ten separate $2,000 scholarships will be awarded to students from any state who have decided to study within the equine, animal science or agriculture industry of Kentucky. The scholarships are also open to individuals with family employed in Kentucky's equine, animal science or agriculture industry.

The goal of these scholarships – made possible by the Race for Education – is to shed a light on career opportunities in the vibrant equine industry of Kentucky, which is home to thousands of horse farms and over 240,000 horses. The equine industry employs over 60,000 people and has a $6.5 billion annual cumulative direct, indirect, induced economic impact.

“Young people are the lifeblood of our industry. I am continually excited to be able to offer support to students who have chosen the equine industry as a career path,” stated Elisabeth Jensen of KEEP.

Students who wish to apply for one of the 10 scholarships can visit this form on the website.

Additional scholarships are available at raceforeducation.org.

The mission of the KEEP Foundation, a nonprofit 501(c)(3), is to support the economic success of Kentucky's signature industry by ensuring its continued economic viability, making the industry accessible for all who want to participate, introducing more young people to the industry and its opportunities, and educating the people of the Commonwealth about the importance of horses to the state, its economy, its heritage, and its people.

The KEEP Foundation seeks to fulfill this mission through:

  • Generating wider interest from the general public and creating new fans and participants for Kentucky's horse industry.
  • Raising public awareness on the importance of all horse breeds and disciplines in all 120 counties of the “Horse Capitol of the World” through educational events and community engagement that explores the breadth and depth of Kentucky's horse industry.
  • Attracting new people and populations to careers in the industry and reducing the barriers of entry to career paths in the industry.

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Keeneland To Host Horsemen For Historical Horse Racing Legislative Informational Session On Feb. 1

Horsemen and state leaders will convene in support of Historical Horse Racing at the Keeneland Entertainment Center on Feb. 1 at 6:00 p.m., according to the Kentucky Equine Education Project. The meeting is also being hosted by the Kentucky Chamber of Commerce and Kentucky Thoroughbred Farm Managers Club, and is presented by Breeders' Cup and Jackson Kelly PLLC.

“As you know, HHR is under threat following the Kentucky Supreme Court's ruling that called into question the legality of HHR,” KEEP said in a release calling for industry support of the Feb. 1 event. “Now it is up to the state legislature to take action to preserve HHR and its unparalleled impact on Kentucky's horse industry.”

According to the Blood-Horse, the Feb. 1 panel will be led by Kentucky State Rep. Matt Koch (Republican, Paris), and will include Agriculture Commissioner Ryan Quarles, Senate Majority Floor Leader Damon Thayer (Republican, Georgetown), Rep. Adam Koenig (Republican, Erlanger), and Sen. John Schickel (Republican, Union), as well as Kentucky Chamber of Commerce president and CEO Ashli Watts.

COVID-19 protocols will be enforced at the event, which is currently filled to capacity. To sign up to watch the live stream, follow this link.

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.

Legislation to legalize Historical Horse Racing in Kentucky has not yet been introduced, but KEEP said it expects that legislation sooner rather than later. The session resumes on Feb. 2.

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