Gov. Beshear Calls On Kentucky Lawmakers To Be ‘Bold,’ Approve Historical Horse Racing, Sports Wagering

Kentucky Governor Andy Beshear fortified his positions on historical horse racing and sports wagering on Wednesday evening, calling on lawmakers to be “bold” and approve both during the 2021 General Assembly which begins on Jan. 5, reports the Kentucky Herald-Leader. Gov. Beshear's comments were made in a 20-minute speech he gave to the virtually-held legislative preview conference for the Kentucky Chamber.

Gov. Beshear has long been a supporter of both historical horse racing and sports wagering. The former has come under fire in 2020, however, due to a Kentucky Supreme Court decision in September which declared at least one version of historical horse racing terminal to not constitute pari-mutuel wagering, and thus to be illegal.

In response to the state's Supreme Court ruling, Churchill Downs has halted major construction projects at both it's Louisville, Ky. flagship track and at the recently-purchased Turfway Park in Florence, Ky.

Gov. Beshear urged lawmakers to legalize historical horse racing in support of Kentucky jobs and the over $21 million it contributes to the state's budget.

Read more at the Kentucky Herald-Leader.

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Cauthen: Historical Racing Is ‘Moving Our Industry Forward While Bolstering Many Others’

On Monday, Kentucky legislators heard arguments from both sides of the historical horse racing debate. The discussion was precipitated by the state's Supreme Court ruling declaring the games do not qualify as pari-mutuel wagering, and thus are not legal under state law. Horsemen are seeking legislation allowing HHR terminals to be legal, and Doug Cauthen, chairman of the board of the Kentucky Equine Education Project, penned an op/ed for the Northern Kentucky Tribune to urge state legislators to protect historical horse racing.

Cauthen explained that historical horse racing is directly responsible for 1,400 jobs across the state, and has contributed over $52 million to Kentucky's general fund. The games support the state's horse racing industry, which has a $5.2 billion economic impact.

“Historical horse racing is not a new idea or some 'what if' concept,” Cauthen wrote. “It is brick and mortar facilities that are generating valuable state revenue, providing paychecks for Kentuckians and moving our industry forward while bolstering many others. (…) By taking action to protect the future of historical racing, our elected officials are protecting critical jobs, state revenue and economic development—all of which greatly benefit their constituents and their communities.”

Read more at the Northern Kentucky Tribune.

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Churchill Pauses Turfway Construction Due To Kentucky Supreme Court’s Historical Racing Decision

On a Thursday's third-quarter earnings call with investors, Churchill Downs Inc. CEO Bill Carstanjen announced that the company's construction of a new grandstand and historical racing facility at Turfway Park will be paused, reports the Thoroughbred Daily News. The announcement follows the Sept. 24 news of the Kentucky Supreme Court decision that the Encore brand of historical racing machine does not constitute legal pari-mutuel wagering.

“Regarding the Turfway Park HRM and grandstand project, we have temporarily paused the construction of this facility,” Carstanjen said. “In late September, the Kentucky Supreme Court issued a decision concerning the legality of the company called Exacta HRMs under Kentucky law. While we do not have any Exacta HRMs at any of our facilities, and therefore are not directly impacted by the Kentucky Supreme Court ruling, we feel it is prudent to refrain from further significant capital investment until the Kentucky legislature has an opportunity to review the decision and the technicalities in the current law during the legislative session starting in early 2021.”

Also on hold are a hotel and historical racing facility at Churchill Downs, though Carstanjen attributed that delay to the COVID-19 pandemic.

Both the Kentucky Horse Racing Commission and Keeneland have petitioned the Kentucky Supreme Court for a rehearing.

Read more at the Thoroughbred Daily News.

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HHR Fate Still ‘Elephant in the Room’ As KHRC Grants ’21 Race Dates

Saying he’d “like to briefly address the elephant in the room,” Kentucky Horse Racing Commission chairman Jonathan Rabinowitz opened the board’s Oct. 20 videoconference meeting by attempting to reassure the racing community that elected and appointed officials are working to find a solution to a Sept. 24 Supreme Court of Kentucky opinion that told a lower court to re-examine the legality of historical horse race (HHR) gaming.

HHR handled $2.2 billion during the commonwealth’s most recent fiscal year, and revenue from that form of gaming annually contributes tens of millions of dollars to purses at the state’s five Thoroughbred tracks. The Supreme Court’s opinion that HHR does not comply with the pari-mutuel wagering statute has imperiled that crucial source of funding.

“While I cannot say too much, I do want everyone to know that if the current Supreme Court opinion is rendered final, that this commission is committed to finding a solution,” Rabinowitz said.

“Additionally, after having numerous conversations with the governor, it’s clear that the governor and his team are committed to finding a solution,” Rabinowitz continued.

“Lastly, I truly hope and believe that this legislature is equally committed to finding a solution to this bipartisan issue in order to save thousands of Kentucky jobs, millions in tax revenue annually for the commonwealth, and to preserve the commonwealth’s signature industry as the best in the world,” Rabinowitz said.

Rabinowitz provided no specifics and there was no additional discussion of the topic among KHRC members, either directly after his statement or during the entirety of the meeting.

Chief among the various items that passed via unanimous voice vote on Tuesday was the KHRC’s approval of 2021 race dates, awarded as follows:

Turfway Park: Jan. 1-Mar. 28 on a Thursday-Sunday schedule. The Thursdays, however, are all marked “optional” on the calendar provided by a KHRC spokesperson.

Keeneland Race Course: Apr. 1-23 on a Wednesday-Sunday schedule.

Churchill Downs: Apr. 24-June 26. With the exception of the first Wednesday that falls during GI Kentucky Derby week, the Wednesday programs are “optional.” Derby week will also feature an Apr. 27 Tuesday card but no racing Sunday, May 2. A Monday, May 31 (Memorial Day) program is also added.

Ellis Park: June 27-Sept. 4. With the exception of July 1, all of the Mondays-Thursdays within that date allotment are “optional.”

Kentucky Downs: Sept. 5, 6, 8, 9, 11, 12.

Churchill: Sept. 15-Oct. 3 on a Wednesday-Sunday schedule, with the Wednesdays “optional.”

Keeneland: Oct. 8-30 on a Wednesday-Sunday schedule.

Churchill: Nov. 3-28 on a Wednesday-Sunday schedule.

Turfway: Dec. 1-31 on a Wednesday-Sunday schedule; Wednesdays “optional” and no racing Dec. 24 and 25.

Susan Nash, the KHRC’s executive administrative secretary, said that, “I’d like to point out that the total number of requested Thoroughbred dates for 2021, compared to what was awarded in 2020, shows as a negative one [date], representing a decline from last year.”

But Nash explained that’s because Keeneland’s request to host the two-date Breeders’ Cup meet this year bumped up the state’s 2020 total by two dates from 2019, “so consequently, there is actually an increase of one day for 2021” when the two Breeders’ Cup dates are removed from the equation.

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