Sports Betting Bill Advances in Kentucky

House Bill 606, which would legalize sports betting in Kentucky, passed by a margin of 58 to 30 Friday in the Kentucky House and will now be sent to the Senate.

The bill will also legalize fantasy sports and on-line poker. The revenue will be used to support the state pension fund.
The bill was sponsored by Rep. Adam Koenig (R-Erlanger), a longtime supporter of sports betting in the Blue Grass State. Koening estimates that sports betting will generate at least $22.5 million in new state tax revenue each year. It marks a third year that a sports wagering bill has come out of committee, but it has stalled each time. But with the 58-30 vote along bipartisan lines in the House, there are renewed hopes that sports betting will be legalized this time around.

Koenig said Friday that the bill would bring “activities that go on in every corner of this state out of the darkness and into the light.”

“The fact is, we've been betting on sports in America since they invented sports,” he added.

So far as its chances of passing the Senate, the Majority Floor Leader, Senator Damon Thayer, is on record supporting sports betting.

“With the passage of HB 606 in the House of Representatives, the sports betting issue moves to the Senate,” Thayer told the TDN in a text. “We will be reviewing the bill and assessing its chances in our chamber. I am a firm supporter of sports betting and hope enough of my fellow members join me in supporting the measure so that we can join most of America in allowing it to occur.”

The main opposition to the bill comes from religious organizations and their supporters among Kentucky lawmakers.

David Walls, the executive director of the Family Foundation, told wdrb.com that sports betting was an example of “bad government and bad policy.”

“This type of predatory gambling is designed to prey on human weakness, with the government colluding with the gambling industry to exploit our fellow Kentuckians,” Walls said.

The 2022 session of the Kentucky General Assembly ends Apr. 14, meaning the Senate will have to act quickly. If the bill passes the senate and is signed by Governor Andy Beshear, it is estimated that sports betting could be up and running in the state by mid-summer. Beshear has come out in support of sports betting.

The bill allows the state's racetracks to partner with mobile sports betting operators like DraftKings and FanDuel. Online betting will be available throughout the state. The tracks will also be allowed offer sports wagering as their main location, simulcasting facilities and at their venues hosting Historical Horse Racing machines. Those will be the only brick-and-mortar facilities permitted to conduct sports betting. Patrons will have to go the tracks or their affiliated locations to sign up for an account.

Horse racing purses will not get a cut from sports betting, but its legalization and the fact that it will take place out of the state's racetracks could help introduce sports bettors to racing.

Sports betting will regulated by the Kentucky Horse Racing Commission.

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Pari-Mutuel Bill Approved by Kentucky House Committee

Kentucky House Bill 607, which contains a provision to greatly benefit horseplayers by effectively eliminating breakage, was overwhelmingly approved Wednesday morning by a Kentucky House of Representatives committee. HB 607 also standardizes the tax rate on all pari-mutuel wagers placed in Kentucky and also makes claiming races eligible for Kentucky-bred purse subsidies. The bill must still be approved by the full House before being sent to the Senate.

Representative Adam Koenig, whose district in Northern Kentucky is near Turfway Park, is a primary sponsor of the bill, which also has the capacity to significantly increase revenue to the state General Fund while allowing horse racing to thrive.

“In a couple of years, we're looking at a $27-million increase, probably at a minimum,” Koenig told the committee, noting that's in addition to the $62 million projected to flow to the state from pari-mutuel taxes in 2022. “So the money is coming in from the industry. I think I found some creative ways generating additional money without hurting the product.”

The bill is the product of last year's legislative interim task force on pari-mutuel wagering that was chaired by Koenig and Kentucky Senate Majority Leader Damon Thayer, a long-time supporter of the Kentucky racing industry. Created following the passage of legislation that protected Historical Horse Racing (HHR) in the state, the task force was charged with identifying ways to increase state revenues without negatively impacting purses and without discouraging racetracks from investing in HHR operations and associated capital projects.

Penny Breakage A Positive Development…

A key element of HB 607 is the virtual elimination of so-called breakage, where tracks round down winning payoffs to the nearest dime based on a $1 wager. Under HB 607, tracks would be required to pay off to the nearest penny, resulting in greater amounts of money returned to horseplayers. Koenig cited the example of 2018 Triple Crown winner Justify paying $7.80 to win in the GI Kentucky Derby, a figure that would have been $7.92 with penny breakage.

“That is the bettors' money,” Koenig said. “I've been very interested since last year's HHR debate in making sure the bettors are taken care of. We took care of everyone else. Everyone is getting healthy on this except for the bettors, and this is how we're going to help the bettors. They're going to get paid to the penny rather than every 20 cents. In addition to taking care of the bettors, it will make Kentucky the place in North America to wager. If you're someone who wagers a lot of money, why would you bet anyplace else?” (Click here to watch Adam Koenig on a recent episode of the TDN Writers' Room podcast).

Also easily passing the “L&O” committee Wednesday were bills that would legalize betting on sports in Kentucky and provide funding for problem gambling.

Additionally, HB 607 calls for the taxation of pari-mutuel wagers at 1.5%, the same rate assessed for HHR gaming. The bill raises the current rate for bets placed through ADWs from 0.5%. The tax rate on simulcast wagers placed at a Kentucky track on an out-of-state race would drop from 3%. The majority of bets are now placed through ADWs, while simulcasting has shrunk considerably as horseplayers opt for the convenience of wagering online.

KTDF Supplements Expanded…

Currently, money from the Kentucky Thoroughbred Development Fund (KTDF) is restricted to non-claiming races, but HB 607 cancels that stipulation, a policy change that has been strongly advocated for by the Kentucky HBPA in an effort to raise purses for the lower-level races in which many horsemen compete.

Rep. Al Gentry, a member of the pari-mutuel wagering task force, called making claiming races eligible for KTDF supplements “very, very important and one of the big pieces of the bill.”

Given that HHR has helped Kentucky to be in a position to offer some of the highest purses in the world, and with HHR revenue expected to grow with the expansion of satellite facilities, HB 607 also stipulates that after KTDF money reaches $40 million and the Kentucky Standardbred Development Fund its $20 million in a year, the rate going to purses would decrease, with the difference channeled to the state's General fund.

“We believe in two or three years, when the Historical Horse Racing facilities are more mature, that we're looking at $20 million additional in the General Fund,” Koenig told the committee. “The increase in the ADW tax from one-half to 1 1/2% will immediately generate $4 million a year. That's the growth area, so that will continue to go up over time.”

 

 

 

The bill also:

 

  • Provides funding to the equine programs at the University of Kentucky and Bluegrass Community and Technical College. The University of Louisville business school's Equine Industry Program already receives funding from pari-mutuel wagering.

 

  • Eliminates the 15-cent per person admission tax racetracks currently pay even if they don't charge admission (which is every track except Churchill Downs and Keeneland).

 

  • Requires tracks to maintain a “self-exclusion” list–where individuals such as problem gamblers can say they don't want to be allowed into a track or HHR facility for a given period of time–to be shared with the racing commission and the other tracks and HHR properties.

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Wesley Ward’s Stolen Trophies Recovered

LEXINGTON, KY–The majority of the trophies that were stolen just over a month ago from trainer Wesley Ward's home in Versailles, Kentucky have been recovered. According to the Versailles Police Department's Assistant Chief Rob Young, one individual was charged with receiving stolen property and is now in custody.

On the morning of Feb. 8, 2022, a thief walked off with 14 trophies, including many that Ward received from the Royal Ascot meet, but they did not take any other valuables from the home such as electronics and several other trophies were left behind.

Ward was informed of his recovered trophies on Thursday.

“We got a call from detective Steve Sparkman of the Versailles Police Department and he brought me in and said they had recovered the majority of the trophies,” Ward said. “There are still a few missing. Those trophies are not worth anything monetarily, so at least we got them back and the memories are still there.”

Assistant Chief Young said that seven of the missing trophies have been recovered.

“It's not the outcome that we wanted because they were heavily damaged,” he admitted. “Versailles police worked with the Montgomery County Sheriff's Office and the Lexington Police Department and we recovered them in Lexington on Wednesday. The case is ongoing. We're trying to recover additional trophies as well as identify all parties involved.”

Due to the ongoing status of the case, Young could not share any further information on the subject in custody.

Ward said that while the recovered trophies were burnt down in order to obtain any precious metals, he added that they were still recognizable and the Royal Ascot insignia could still be seen. When the trophies first went missing, Ward had said he would inquire about seeking replacement trophies, but now says he wishes to keep the recovered trophies despite their damage.

“We'll keep what we have,” he said. “We'll have to dust them off and clean them up, but we're happy to have them back.

Ward credits his son, Riley, for his hand in recovering the trophies by reaching out to various local news outlets including WKYT and LEX18NEWS.

“My son has been there for all these wins and was on the platform when we got all these trophies,” he said. “It really hit him hard so he's the one that reached out to the news outlets. I can't thank them enough because according to Detective Sparkman, that's one of the biggest reasons they were found is because they got a tip from someone and there was a lot of loose talk I guess, so thank God for my boy. He's the one that recovered them.”

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‘We Were Willing To Work – And To Take A Risk’

Year after year, the thread of his horsemanship snags another big prize in the web of his many different interests. And this spring Gabriel Duignan is back on the GI Kentucky Derby trail—this time as breeder, his Springhouse Farm near Lexington having started Forbidden Kingdom (American Pharoah) along the road that has already taken in two of the big Californian trials, latterly the GII San Felipe S. at Santa Anita last weekend. 

Before you ask: disappointingly, there's no real story behind the nickname. When he started as a kid at Airlie Stud, his predecessor had for some reason been known as “Spider”, and the guy in charge just couldn't keep his real name in his head. On the third day he gave up, and announced that Duignan might as well be Spider too. “Though I was a skinny, leggy young guy, so it suited a bit as well,” notes Duignan.

But if that particular line of inquiry turns out to be something of a wild goose chase, then at least we can now formally acclaim Duignan and his wife Aisling as the ultimate such quarry.

Last week they were profoundly touched to return to their native land to be jointly saluted by the Irish Thoroughbred Breeders' Association with the “Wild Geese” Award, made to compatriots who fly the tricolour in exemplary fashion on foreign fields.

They were amused, too, by some of the themes of a video tribute. Repeated reference was made by friends and colleagues, with an air of perplexity, to Duignan's roots in rural Co. Leitrim. (“Okay, so there wasn't a huge horse culture,” he concedes. “But surprisingly enough, there were always a few horses around.”) Paramount's Lesley Campion noted how well the couple complemented each other: “Aisling's smart, hard-working, astute; just a lovely, decent, kind, welcoming person. And, um, Spider is a good dancer. And is tall. And is from Leitrim.”

But the real cornerstone was a contribution from John Magnier, who employs Aisling as Director of Bloodstock at Ashford Stud.

“Spider, I knew you were clever from the time you were working for Tony Ryan and did so well for him,” the Coolmore boss said. “But when you got married to Aisling that confirmed how clever you were.”

Magnier recalled Aisling leading the mares out “as a kid” in all weathers: “Dressed up in rain gear so you could hardly find her. But she always stood out, really, and it's not a surprise to me that she's reached the heights that she has.”

“Those were lovely words he said,” her husband says. “To be fair, I think they've always had a great relationship. Look, it was a beautiful award to receive, the ITBA did a great job putting on the whole night, and the whole thing is very gratifying really. It's always nice to be recognised by your peers.”

Over the years, of course, Kentucky has become something close to a 33rd Irish county. But when Duignan first arrived in 1985, recommended to Bill O'Neill at Circle O Farm, he was only just behind a pioneering wave of migrants led by the likes of the late Gerry Dilger, himself winner of the Wild Geese Award in 2018. It's fitting, as such, that the bursary fund collected in Dilger's memory should be devoted to fresh cycles in that ongoing, transatlantic exchange of enthusiasm and experience, with two young women from Ireland set to arrive for their belated stint at Springhouse.

“Because of lockdown, unfortunately we weren't able to bring them over as planned last year but we're looking forward to the two girls coming over in the spring and that'll kick it off,” Duignan says. “An American student is also being sent to the Irish National Stud. It's a great thing to give young people the kind of experience that we had. Gerry was such a super guy, kind of the godfather to us all over here, and I'd like to think his fund will be around a long time into the future.”

Opportunities like this, and of course the Godolphin Flying Start, were not available when this wild gosling first took wing, and the Irish expatriate community in the Bluegrass duly owes a great deal to the informal impetus provided by John Hughes, in Duignan's own case, and Michael Osborne, in so many others.

“I'll forever be indebted to John Hughes,” Duignan stresses. “He was head vet at Airlie while I was there, and took a personal interest in sending me over here and setting me up with a job at Circle O. He was a great guy. Himself and Dr. Osborne were the two that looked after a lot of young Irish people at the time, and sent us on our way.

“None of us had very many dollars in our back pockets when we got here. But I guess Ireland was in pretty bad shape at the time. We arrived with very little expectations, but we were willing to work and grateful for any opportunities we got. And then there was a little of that entrepreneurial spirit as well. When we did make a few dollars, we were prepared to take a risk and invest in a horse. It's a fantastic community: a great bunch of people, very close, almost like family really. Everybody pulls for each other.”

For all the banter about his upbringing in a relative backwater of the Turf, Duignan came from a farming family and, like so many compatriots, exported an engrained, instinctive stockmanship.

“I was just one of those kids born with a love of horses,” he says. “My brother Cahill was the same, and we were sent to a local guy who broke horses. I started with the ponies and gymkhanas, but figured out pretty early on I wasn't good enough to make a living out of that. So I transferred over to Thoroughbreds at Airlie Stud. I do think a stockman is a stockman, absolutely: if you've an eye for a horse, you'll have an eye for cattle, for any animal really. And that love for the land is very closely related too. You can learn, you can help yourself, but I see American kids that grew up on a farm, and it's just the same: it gives you a little edge.”

That raw material couldn't have been better shaped than by O'Neill, who had managed Bwamazon Farm for Millard Waldheim before taking on Circle O.

“He was a great mentor to me,” Duignan recalls. “He was a proper, old-fashioned Kentucky hardboot. It was hard work, no messing around, but I learned a lot off him. And actually I've just been lucky through life, working with a lot of good people. Like David Garvin, who gave me the opportunity to start buying horses for him at Ironwood, a beautiful farm I managed for him at Bowling Green. And then Dr. Ryan took me on [as president of Castleton-Lyons]. Another great man: he pushed you, he had great foresight. I learned a lot of the business part of things through him.”

And that element would be critical to Duignan's development of such a diverse portfolio: farm owner, breeder, pinhooker and, in 2001, founding partner of Paramount with Pat Costello. They had already been the core investors, along with Ted Campion, in a pinhooking partnership they called The Lads.

“I've always been lucky to have great partners,” Duignan says. “Gerry. Ted and Pat. Charlie O'Connor. Back then, I guess a good bit of it was trial and error. But we all learned a lot from each other. And our timing was good. The market had been a bit more closed before, but as things became more commercial you had more opportunities for striking out and selling on your own.”

His association with Costello now goes back some 30 years. He suspects that they first met in a pub.

“Believe it or not!” he says with a chuckle. “Yeah, we met shortly after coming here and just hit it off and have been friends ever since. Obviously we think a lot alike, as far as a horse is concerned. You do need to have give and take, if you're going to do partnerships, but to be honest we've never had any differences.”

The ultimate partnership, however, is naturally that with Aisling herself. Duignan submits willingly to all the facetious inferences of their friends in the ITBA video.

“She's been huge help,” he says. “It's lovely to have somebody you can bounce things off that's smarter than yourself. She has unbelievable energy, has to juggle lot of balls in the air, and I don't know how she does it: she's a very sharp businesswoman, but also a wonderful mother and just a fantastic person.”

All ribbing aside, however, everyone acknowledges Duignan himself as an outstanding horseman. Wearing his various hats, he has processed too many good horses for there to be any doubt about that. During his time at Castleton-Lyons, Duignan assisted in the rise of Malibu Moon, while young stallions No Nay Never and Gormley are among the graduates of the Paramount consignment. If forced to identify one dimension of his portfolio that gives him most pride, however, it would probably be the mares that have found their way to various farms under his supervision.

When Point Given (Thunder Gulch) was a weanling, for instance, Duignan brought his dam to Ironwood for $160,000; she was sold for $2 million in the same ring five years later. He bought the dam of Gio Ponti (Tale of the Cat) for Castleton Lyons. Then there was dual Grade I winner Brody's Cause, co-bred with William Arvin Jr. and Petaluma Bloodstock after the $130,000 acquisition of his dam.

Just last year two juveniles to have been through Duignan's hands scored at the elite level: GI Starlet S. winner Eda (Munnings) was sold by Paramount as a Keeneland September yearling for $240,000, while GI Breeders' Futurity S. winner Rattle N Roll (Connect), pinhooked as a $55,000 weanling via Rexy Bloodstock, was sold in the same consignment for $210,000. And now, from the same crop, Forbidden Kingdom is advertising the alert recruitment of his dam Just Louise (Five Star Day) for just $150,000, despite her GIII Debutante S. success in a light career.

“That's what it's all about, at the end of the day,” Duignan says. “The buzz of good horses. I think the biggest thing, looking back, was the day I started investing in the game rather than just working in it. In life, you always need luck and thank God I've had my share of that too. But there are always risks involved, so you do need the mentality to take the ups and downs. If things go wrong, you have to be able to take it and move on; you don't look back, only forward.”

In raising a horse, equally, he feels you have to let things flow; to expose horses to the challenges that help them mature into fighters on the track—very much, he suggests, part of a culture shared by his fellow “wild geese”.

“I do think we try to let them be horses,” he says. “They're kept outdoors as much as possible, kept in the herd as much as possible. I think it's very important you don't hothouse horses, because I think it's been proven through the years that you just make a softer individual that way. I think probably all the Irish guys are a bit like that.”

Duignan rejects the pessimism expressed by many for the American industry. Purses in some states are very strong, he notes, while that even the pandemic yielded reasons to be cheerful in increased handle, and a remarkably robust bloodstock market.

“No doubt the business has shrunk over the last 20 years,” he admits. “But it's very resilient. At the end of the day, there is that bond between humans and horses. It's a great game, and I often say that I probably never worked a day in my life. If you love what you do, there's no better way to go through life. So long as you're able to take a few knocks along the way, it's a lovely way to make a living.”

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