Kentucky Governor Signs Historical Horse Racing Bill Into Law

The Kentucky Equine Education Project (KEEP), Kentucky's equine economic advocate, released the following statement today regarding Governor Beshear's signing of Senate Bill 120:

“We thank Governor Beshear for signing Senate Bill 120 into law, which ensures the future of our equine industry while protecting thousands of local jobs. Kentuckians and the legislators who represent them have made clear that they support historical horse racing and the many benefits it brings to our communities. We are optimistic about the horse industry's road ahead and remain committed to keeping Kentucky a world-class racing destination for many years to come.”

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Kentucky Horse Racing Commission Awards $14.3 Million In Incentive Funds To Breeders

It's payday for many horse breeders in the commonwealth as the Kentucky Horse Racing Commission (KHRC) awards $14.3 million to qualified breeders through the Thoroughbred Breeders' Incentive Fund.

The incentive fund requires owners to board mares in Kentucky from the time of breeding until the birth of the foal. Incentive payments are based on the foal's eventual winnings on the racetrack. Last year, nearly 3,500 races were won by a Kentucky-bred receiving a breeder award.

In a year when the Kentucky Derby and Oaks were raced in the fall and the Preakness a month later, Kentucky-breds won over 245 graded stakes in the United States and 18 group races in Canada, England, France and Ireland.  Those victories include Authentic's success in the Kentucky Derby, Shedaresthedevil's win in the Kentucky Oaks and Swiss Skydiver's win in the Preakness.

“We need the commonwealth's signature horse industry to stay strong and engaged as we sprint out of the COVID-19 pandemic. On top of being part of our history, the industry supports many Kentucky families today and will continue to draw new visitors to the state in the future,” said Gov. Andy Beshear. “Thanks to Kentucky breeders and a strong racing circuit enhanced by historical horse racing, Kentucky remains a leader in breeding with more stallions than any other state, and representing 42 percent of the foal crop in North America.”

Since its inception in 2006, more than $184 million has been awarded to Kentucky breeders for winning eligible races across the globe. The incentive fund helps ensure the strength and growth of the horse industry in Kentucky. The fund receives 80 percent of the 6 percent sales tax paid when breeding a stallion to a mare in the commonwealth. In addition, the 2020 fund received $1.1 million from wagers on historical horse racing.

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‘It’s Not Just The Big Guys’: Historical Horse Racing Supports Small Kentucky Tracks, Horsemen

As both the Kentucky State Senate and Kentucky House Committee for Licensing, Occupations and Administration Regulations passed SB 120 this week, Turfway Park horsemen are making their case for the importance of protecting Historical Horse Racing. They say protecting HHR, as it is known, is critical to saving Kentucky jobs, including their own.

HHR's future in Kentucky is uncertain following an opinion issued by the Kentucky Supreme Court in September. At risk is a significant revenue stream that has produced some of the best racing purses in the country, prompted track owners to make considerable facility investments and bolstered a year-round racing circuit on which Kentucky horsemen have come to depend.

Trainer Buff Bradley, a Kentucky native, left the state 11 years ago to winter in Florida and then New Orleans because purses had gotten so bad at Turfway Park. After purses increased last year, he convinced owners to stick around Kentucky.

“I was hoping Kentucky was going to be a stronger circuit, with Ellis doing well,” said Bradley. “It really looked like Turfway was going to be on the rise with Churchill buying it and purses increasing. Now I'm rethinking, 'Uh oh. I came here and it might have been too soon,' because things aren't looking as well with Historic Horse Racing machines maybe not going through. That's going to be the big question.

“Kentucky can be a great circuit,” he said. “I know last year everybody was thrilled. You've got owners who see a rising Kentucky, even with Ellis Park and Turfway's purses being better, they can afford to stay around here. And they live here. If they can do that, they're going to go to the sales and buy more horses. If we can keep more horses around here, we can keep everybody busy – more jobs. There's a lot to it.”

Bradley employees 12 people in his 20-horse stable at Turfway.

“The money has made a big difference,” he said. “It's not like we're getting rich off this, but it makes it affordable for people to stay and to meet people to buy horses. It's become a year-round circuit in Kentucky, which is a big plus. Because you keep the people here. This is our home.

“If we don't have HHR, I can see racing really decreasing here in the state. Horse racing will go down to Keeneland and Churchill basically. I can't see how Turfway, Ellis Park – those two tracks for sure – and even Kentucky Downs could survive. We'd probably decrease the number of days even at Keeneland and Churchill. And when that happens, it's tough to get stables to come in because there isn't going to be much racing. They're going to go to New York and Florida, areas where they have racing throughout the year.”

Groom Toni Ouzts, who has two children with her husband, veteran jockey Perry Ouzts, is concerned that if the Kentucky House does not pass the HHR bill, life will be more difficult for them.

“I need this job,” she said. “It's my livelihood. It's my passion. I'd be lost without it. And my husband would be out of work, too, if we would not have Turfway Park.”

Asked about people who would say that HHR just makes rich people richer, she said: “No. This is keeping me in a job. It's keeping my husband in a job, people I work with every day. We work seven days a week. This is more than a job. It's everything. My sister and I work here 'rubbing' horses together. And even her husband works on the front side. It's giving everyone a job.”

When discussing the potential of Turfway likely shutting down unless the HRR bill passes, she said she is surprised that Turfway's existence is even in doubt and it makes her sad.

“It's scary. It really is scary.”

Turfway “gives so many people job,” she said. “So many people would be out of work. Just think of the hay and straw people, the feed man. There's so much involved in horse racing. It's not just the big guys.”

Trainer Jeff Greenhill left a career as chemical engineer in Alabama to go into horse racing. He's been training about 25 years, wintering at Turfway Park throughout.

“This is the place that the little guy survives — here and Ellis Park,” Greenhill said. “There are 1,100 horses here, and I've got 18 and I have eight employees. You can do the math: There are a whole lot of people here employed by the horse-racing industry. Unless purses stay at a reasonable level, I'm out of business or I'm moving to New York, Florida or Indiana.”

Veterinarian John Piehowicz, who has served clients on the local racing circuit since the early 1990s, also sees difficult choices ahead without historic horse racing.

“If SB120 isn't passed then I think this (Turfway Park) is done,” he said.

Piehowicz says racing “is the one industry where trickle-down economics works. If you look around the racetrack here, there are a lot of people who depend on the horses, depend on the income – whether it's a Sunoco station around the corner where half the people who work here go and buy their snacks or the local community. When this place closes it's going impact more than horse racing in the state of Kentucky.”

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Vote on HHR By Full KY House Could Come Thursday

A vote on the fate of historical horse race (HHR) gaming in Kentucky by the full House of Representatives could come as early as Thursday after lawmakers Wednesday morning continued to fast-track the “emergency” Senate bill to legalize the slot machine-like form of betting by defining “pari-mutuel wagering” to include previously run races.

About 17 hours after SB 120 passed the full Kentucky Senate by a 22-15 vote, the proposal sailed through the House Licensing, Occupations and Administrative Regulations Committee Feb. 10.

Representative Adam Koenig (R-Erlanger), who chairs that committee, said after the bill cleared his committee that the earliest it could be debated and voted upon on the House floor is Feb. 11.

“There are some more conversations to be had in our caucus,” Koenig told Casino.org reporter Steve Bittenbender via text message.

If the vote doesn't happen Thursday, the next earliest date on Kentucky's legislative calendar for the House to be in session is Tuesday, Feb. 16. This Friday is marked as a “draft day” for lawmakers, and the traditional weekend off extends through Monday next week because of the Presidents Day holiday.

Proponents of the bill are aiming to align HHR in a way that they believe will make the slots-like form of gaming constitutionally legal so the machines can keep generating $2.2. billion in annual handle. The Kentucky Thoroughbred Development Fund's purse-money cut from HHR is three-quarters of 1% of that handle.

HHR was put into peril Jan. 21, when the Supreme Court of Kentucky denied a petition for rehearing an earlier judgment that called into question the legality of HHR because it didn't amount to “pari-mutuel wagering.” The question over that legal definition, led by anti-gambling activists, has worked its way through the court system ever since HHR was first allowed by the state in 2012.

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