Kentucky House of Representatives | Horse Racing Free Tips

Bill to Establish Independent Kentucky Gaming Commission Passes House

In a vote late Thursday night, the Kentucky General Assembly passed a bill to establish an independent Kentucky Horse Racing and Gaming Corporation, according to a press release from Senate Majority Floor Leader Damon Thayer (R-Georgetown), the primary sponsor of the legislation. Senate Bill (SB) 299 revises Thayer's original proposal to attach the commission to the Kentucky Department of Agriculture administratively. The legislative effort was revised following further conversations with stakeholders and House Speaker David Osborne (R-Prospect), which would now establish an independent Kentucky Horse Racing and Gaming Corporation.

In his support of the bill, Osborne drew comparisons to the Kentucky Lottery Corporation and the Public Service Commission. A Senate Committee Substitute was adopted to outline the corporation's formation and set forth a robust framework for its operations. Subsequently, the Senate committee approved SB 299 on Tuesday and with passage in the House was delivered to the Governor on Wednesday.

Currently, HRC oversees all aspects of horse racing in the state, including venues housing historic horse racing (HHR) machines. SB 299 seeks to create the Kentucky Horse Racing and Gaming Corporation as an independent entity that regulates horse racing, sports wagering and charitable gaming in the commonwealth, effective July of this year.

“With the passage of SB 299, we're taking a crucial step in safeguarding the integrity and prosperity of our signature horse racing industry,” said Thayer. “As a cornerstone of Kentucky's heritage and economy, it's imperative that we uphold strong oversight and management of these vital industries. I contend the success of this industry demands it be a stand-alone entity capable of utilizing its funding without having to get authorizations from a bureaucratic agency. I am proud to sponsor this measure to promote this integral part of the commonwealth.”

Under SB 299, the existing racing commission members would transition to become the initial board of the newly formed corporation, serving two-year terms. Future board members would continue to be appointed by the governor but would require approval from the Kentucky Senate and oversight from the Executive Branch Ethics Commission.

Read SB 299 in its entirety here.

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Kentucky House Passes HISA Funding Review Resolution

One day after Kentucky's state senate adopted a resolution by voice vote to urge a review of the HISA funding methodology, the Kentucky House of Representatives did the same. House Resolution 98, “A resolution expressing concerns regarding the unintended consequences of the current funding methodology of the Horse Racing Integrity and Safety Act,” was adopted by a voice vote in the House.

The resolution was sponsored by Republican representative Matthew Koch, and Democratic representative Al Gentry.

The language is identical to that of its companion resolution in the Senate, contained in Friday's TDN.

The sponsor of the Senate resolution was Damon Thayer, who commented upon what he felt was a need for the review.

“While I support the HISA goals of uniformity and standardization of racing rules, its implementation so far has been less than inspiring and it may still be ruled unconstitutional,” said Thayer in a text. “Now HISA is trying to force a funding model that is unfair to Kentucky racing and potentially taxpayers with an unfunded mandate the punishes us for our success. I do not support this approach and this Resolution, which passed unanimously in the House and Senate, memorializes that and urges consideration of a different formula. At best, HISA should be funded with an annual federal government appropriation, but at the very least should not have a funding model that is punitive to successful racing states like Kentucky.”

A statement from Rick Hiles, the Kentucky Horsemen's Benevolent and Protective Association (HBPA) president, read:

“We applaud the Kentucky Senate, led by sponsors Majority Floor Leader Damon Thayer and John Schickel, and the Kentucky House of Representatives, with Reps. Matt Koch and Al Gentry the sponsors, for their resolution that raises many of the concerns we have about the Horseracing Integrity and Safety Act and the private Authority corporation it created and granted broad powers.

“No matter the inflammatory rhetoric slung at the National HBPA, the resolution–which passed unanimously in both the Senate and House on Thursday–shows that reasonable persons understand that HISA was rushed into existence with a flawed process. They understand our stated concerns about unintended consequences that could devastate portions of our industry across the country, including Kentucky.

“It's gratifying to have leadership that understands that the HISA challenge by the National HBPA, many of its affiliates including Kentucky, the United States Trotting Association, several state racing commissions and attorneys generals and others is because we all want our industry to be strong and to do better and better. All these parties are in complete support of measures that promote integrity, uniformity and fair racing but this must be accomplished only through lawful, accountable and transparent means.

“Prominent in the resolution is the very real threat that the financial structure set up by this unfunded mandate will jeopardize small and medium-sized tracks and smaller stables. That in turn will have a huge impact on Kentucky's breeding and racing industries, as well as the agribusiness that is fueled by horse racing.

“Kentucky is blessed to have legislative leadership such as Senators Thayer and Schickel and Representatives Koch and Gentry, among others, who understand our industry, its complexities and appreciate that racing in Kentucky and elsewhere has many levels that contribute to the entire ecosystem. To destabilize parts of it, we believe, will have unintended consequences to all involved in the industry from top to bottom.”

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Quarter Horse Racino Approved for Eastern Kentucky

By unanimous voice vote after zero public discussion among commissioners at a “special” meeting, the Kentucky Horse Racing Commission (KHRC) on Tuesday quickly approved a license awarding a Quarter Horse racino license for a track to be constructed in the northeastern part of the state.

The license is the ninth and final of its kind to be awarded in Kentucky.

Although the focus of press releases announcing the deal accentuated the rebirth of Quarter Horse racing in a state better known as the nation's Thoroughbred epicenter, the real prize for applicant Revolutionary Racing will be the privilege of operating historical horse race (HHR) gaming at the facility and its satellite locations.

Although the July 26 KHRC meeting was short on details, the Daily Independent newspaper in the town of Ashland, where the racino will be located, has previously reported that the track will be built behind a mall there, with the 400 HHR machines to be installed in a vacant Sears department store.

In a press release, Revolutionary Racing stated that it envisioned a $55-million investment in the 177-acre property would transform the suburban site near the Ohio River into a “world-class facility.”

The 660-yard sprint track is projected to feature purses of $500,000, which would make the facility the kingpin of Quarter Horse racing east of the Mississippi River, where the breed gets only sporadic support from sanctioned racetracks.

No specific race dates or an opening date were discussed during the public portion of the KHRC meeting. The facility is projected to get year-round use for Quarter Horse shows and other equestrian competitions, and an adjacent entertainment complex is also part of the plan.

No existing Thoroughbred or Standardbred track licensees stated objections to the Quarter Horse racino. Its nearest in-state Thoroughbred competitor would be Keeneland, some 120 miles west.

Four years ago Revolutionary Racing was a partner in the $20-million purchase of then-dormant Colonial Downs in Virginia. Revolutionary Racing was eventually bought out of that deal, and Colonial Downs was subsequently sold in 2022 to the gaming corporation Churchill Downs Inc., for $2.5 billion.

According to the KHRC, in 2021 The Kentucky House of Representatives passed a resolution in support of the Quarter Horse industry in the commonwealth, recommending that at least one race track license be awarded or held explicitly for Quarter Horse racing.

According to the brief comments made prior to the vote, Revolutionary Racing needed to adhere to six conditions to achieve its licensure. But it was not publicly disclosed during the meeting what those conditions were.

One day prior to the meeting, TDN requested from the KHRC the portion of the public meeting packet that contained the license application and related materials. That query did not result in a reply from the KHRC prior to the Tuesday deadline for this story.

Two commissioners, William May and James Worley, abstained from the vote, citing interest conflicts.

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Bill Filed in Ky to Sidestep Stallion Cap

In an attempt to get around a controversial rule by The Jockey Club (TJC) that mandates that stallions born from 2020 onward will only be allowed to cover up to 140 mares, the Speaker of Kentucky's House of Representatives on Feb. 14 co-filed a bill that would prohibit “a registrar of Thoroughbreds” from restricting “the number of mares that can be bred to a stallion or otherwise refuse to register any foal based upon the number of mares bred to the stallion.”

In addition, the measure would empower the Kentucky Horse Racing Commission to “select and utilize an entity to serve as the registrar,” meaning that the state's selection might not necessarily end up being the 128-year-old, industry-standard TJC.

Yet if the chosen registrar does end up being TJC and that organization does not “submit to the jurisdiction of Kentucky” and “comply with the laws of this chapter,” the bill's summary states that Kentucky will amend state statutes to instead “allow the Kentucky Thoroughbred Development Fund registrar to stamp a Thoroughbred's certificate with the registrar's seal.”

House Speaker David Osborne (R-Prospect) and Rep. Matthew Koch (R-Paris) are the co-sponsors of House Bill 496 (summary and details here).

When reached late Tuesday afternoon in his New York office, TJC's president and CEO, Jim Gagliano, said his organization would have no comment at this time.

The controversy over the so-called “stallion cap” dates to May 7, 2020, when TJC put into effect a new rule–known as 14C–that mandated for stallions born in 2020 and later, the maximum number of mares covered will be 140. TJC indicated it simply would not register any foals that were not the product of matings with the first 140 mares to which that stallion was bred in a given year.

At that time, TJC cited the significant, decades-long decline in the North American foal crop and concerns “with the narrowing of the diversity of the Thoroughbred gene pool,” in implementing the new policy, which was met with a hazy mixture of consternation and support within America's bloodstock community.

In 2020, the year the rule went into effect, 42 stallions bred over 140 mares.

On Feb. 23, 2021, Spendthrift, Ashford, and Three Chimneys Farm sued in federal court to keep the rule from going forward and to collect alleged damages. The complaint called 14C a “blatant abuse of power” that acts as an “anti-competitive restraint” and threatened to disrupt the free-market nature of the breeding business.

On Mar. 29, TJC disagreed, calling the plaintiffs' allegations “scattershot” and “meritless.” TJC moved to dismiss the lawsuit, but the judge has yet to rule on that motion.

Reached just before deadline for this story, Spendthrift declined to comment on the proposed legislation.

If enacted as written, the bill aspires to become reality within about six months.

The bill states that, “On or before Sept. 1, 2022, the racing commission shall promulgate administrative regulations in accordance with [state statues] to implement this section.”

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