Sports Betting Legalized In Kentucky

Just before the Kentucky State Legislature was to adjourn Thursday evening, House Bill 551–legislation to legalize, regulate and tax sports betting in the Commonwealth of Kentucky that seemed a longshot as late as Thursday morning–passed the Kentucky State Senate by a vote of 25-12. Governor Andy Beshear was to sign the legislation, which required 23 votes in favor, into law Friday morning.

“After years of urging lawmakers to legalize sports betting, we finally did it!” Beshear tweeted Thursday evening. “Today's result shows that hard work pays off. Kentuckians will soon be able to place their bets here, and for the first time, we are going to keep those dollars to support our roads and bridges, schools and communities.”

According to a report in the Louisville Courier Journal, the Kentucky Speedway and the state's horse racing tracks could pay a fee to operate as sports betting facilities, with bets allowed on site as well as on licensed websites and phone apps. Wagers placed at tracks would have an excise tax of 9.75%and online wagers 14.25%.

Early Thursday, it appeared that HB 551 was going to be short of the 23 required votes, but according to the Courier Journal, the bill was placed on the orders of the day and was on the House floor half an hour later.

The Kentucky Equine Education Project (KEEP) issued a statement applauding the passage of the bill, which reads, in part:

“KEEP and Kentucky's horse industry have been actively involved for the past several years in advocating for sports wagering legislation that protects the role of Kentucky's signature industry in the landscape of wagering options and provides new revenue for the state.

HB 551 accomplishes this by allowing for sports wagering to be offered in-person at Kentucky's racetracks. Additionally, sports wagering will be governed by the Kentucky Horse Racing Commission, a testament to the trust that wagerers place in Kentucky's horse industry.

Overall, this bill will benefit Kentucky's horse industry and community by offering new revenue sources for the industry, as well as attracting new fans to the sport through the in-person experiences at Kentucky racetracks.”

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Earning Their Stripes: Jordan Blair

Last year, we conducted a popular Q and A series called 'Smaller But Still Super,' where we featured veteran trainers who have built a competitive racing stable with relatively small numbers (click here to view the archive). This year, we will highlight trainers who have already cut their teeth as novice trainers, but now have a few years of experience under their belt and are looking to make a name for themselves as they grow their stable. We'll talk about the challenges that come with hanging out your single, advice for trainers setting out on their own, how the incoming class of young trainers differs from previous generations and more.

A native of Lexington, Kentucky, Jordan Blair grew up immersed in the Thoroughbred industry of the Bluegrass, but he didn't find his way onto the racetrack until later on his career. He spent his high school and college days working for various farms and sales consignments, from Pin Oak Stud and Dromoland Farm to Taylor Made. After graduating from the University of Kentucky, he went on to earn a Master's Degree in Agribusiness Management. Soon after, he found his true passion on the racetrack and served as an assistant for eight years, learning from the likes of Kenny McPeek and Mike Maker, before taking out his trainer's license in 2013.

Based in Louisville, Blair has steadily built his operation since and now stables around 20 horses. Last year he reached 100 career wins and celebrated his best year yet in earnings.

Blair normally heads south for the winter, but decided to race out of Turfway this year. It proved to be a lucrative decision, as his stable already has six wins on the year and is winning at a 22% clip.

What was the biggest challenge in those first few years as you were getting started?

A big part of it is financial, just paying the bills and making sure your owners are paying the bills. It's about making sure you have good-quality horses and owners in your barn. I've found that a lot of people will try to take advantage of you early on, wanting to do deals. We went through those people very quickly because I learned those lessons the hard way.

When I was first starting I didn't care if a horse was bred in Kalamazoo, I was just trying to fill stalls. Honestly, we were running horses in spots that they didn't belong in because I didn't want to lose them. Now if I have a horse in the wrong spot, I can promise you that it's not my idea. Now we just want to win and I'm not worried if we lose a horse in the claim box.

Debut winner Midnight Rising runs in Saturday's Rushaway S. At Turfway Park | Coady

What do you think makes your stable or your training style unique?

Training is not rocket science. It's paying attention to details and focusing on the little things. When I was younger, I had to learn about work ethic. One of my old bosses from Pin Oak Stud Clifford Barry told me, as he was kicking my tail end every day, focus on the little things and the big things will take care of themselves. I've kind of lived by that as a trainer as I've grown my business.

As I've evolved as a trainer and rules have changed and the veterinary inspections have gotten more rigorous, I've made a focus on the soundness of the horse. Not that I didn't pay attention to that before, but it's more important now than it has ever been. We're constantly going over the horse and I'm hyper-focused on the details and the health of the horse.

This is your first winter at Turfway. What went into that decision to stay in Kentucky?

Tampa Bay Downs was the first place I went and I went there every winter. I knew it was a good surface, a great turf course and a circuit where I knew I could win races down there. Most owners are just looking at numbers, so I wanted to keep our numbers decent. But then I had a family and leaving them every year was awful.

I really hadn't had the opportunity to stay until this year. The first year that Turfway started to get better and purses went up a bit, my owners were not on board yet. Last year I really wanted to stay but I didn't get any stalls at Turfway. This year the facility we stay at all year, Trackside, stayed open. So it was an easy decision.

It has gone really well. We've won our share of races, purses are significantly better, and I've been able to see my kids every day. We had a relatively mild winter with only a few days of jogging in the shedrow, but overall it's been a delight and we've saved a ton of money not having to ship a stable south.

Is a trainer's success defined more by the quality of the horses they receive or their abilities as a trainer?

If you're a college basketball coach, you can be Rick Pitino and be one of the best coaches in history, but you can't win a national championship at Iona. If you're talking about the top of the game, you need the right type of quality of horses to get you there. You can't make a horse faster than their potential unless you're doing something illegal. You can't get to the top without the right horse.

Who is your favorite horse that you've trained?

I have one in the barn now that could be something for Surfside Stables. Midnight Rising (Mendelssohn) broke his maiden at Turfway impressively. He runs in a stake at Turfway this weekend. His last breeze was just amazing. He acts like he's very special.

One of my first horses was a Donegal horse named Oatfield (Candy Ride {Arg}). I thought he was awesome, but he bowed a tenon at the beginning of his 4-year-old year. At the time he was the best horse I had ever had.

Oceanic gets his first stakes win in the 2022 Woodford Reserve Da Hoss S. | Coady

Do you have a horse that you had to overcome obstacles with that you are most proud of getting to the starting gate?

Oceanic (Constitution) is my first and only stakes winner and he is pretty special. He has been in our care since he was two, but he didn't win a stake until he was five. He had immense potential early on, but he was a thumper. Thumping is an electrolyte imbalance that causes a flutter in their diaphragm when they run. It's almost like a hiccup, so it makes running as fast as you can impossible. Figuring that out was a long process and it was frustrating, but his owners and I were patient and kept on with it. He's that horse that overcame obstacles and we had the patience and wherewithal to figure it out with the help of a lot of people along the way.

If one change was made to racing that would make your life as a trainer easier, what would it be?

I'm not a big fan of HISA, and it's not because it's a governing body. I don't think what they're doing is improving the game because it's putting unnecessary pressure on people who follow the rules. If they really wanted to clean it up, all this money should be put into investigations like those that were done with the Navarro and Servis case. That's what's going to clean up the game. It's not catching guys with a small overage on bute or something like that, it's getting rid of this off-market clenbuterol and all this other crap that people are using to cheat and win. We know who they are now and we knew who they were before they proved it with Servis and Navarro. If I was a governing body of horseracing, I would put my resources into these investigations.

I thought HISA was supposed to make uniform rules across the board, but it does not. Tracks or states can make their own rules as long as they are more stringent than HISA. I thought HISA would make all that the same and it hasn't, which is really frustrating.

If you could spend one afternoon at the track enjoying the day (i.e. not working), which track would you be at and where would we find you hanging out?

It's gotta be Keeneland. It's close between Keeneland and Saratoga. Back in college, we were in row 20 tailgating. They didn't have tailgating on the Hill back then. We would be there at nine in the morning and tailgate until the second or third race. Now I don't think I have a spot because I don't really go unless I'm running.

If you aren't at the racetrack, what can you be found doing?

I would be either with my family or working out. My kids are into sports, gymnastics and horseback riding. My hobby is exercise, so I'd be at the gym or the gym in my garage.

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Beshear Signs Bill to Outlaw Gray Machines

House Bill 594, better known as the bill to ban unregulated and untaxed gaming machines known as “gray machines” in the Commonwealth of Kentucky, was signed into law Thursday, Mar. 16 by Governor Andy Beshear. Kentucky is the first state to pass stand-alone legislation banning unregulated gambling machines.

For more information, see our story from last month outlining the threat of gray machines, which made them the main focus of the Kentucky Thoroughbred Farm Managers' Club (KTFMC)'s monthly meeting.

Visit here for information stemming from when the Bill passed the Kentucky Senate.

Click for the official record of HB 594.

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Gray Machines Pose Major Threat to Kentucky’s HHR, Horse Racing

by Sara Gordon and Katie Petrunyak

Many of the nearly 250 people attending the Kentucky Thoroughbred Farm Managers Club's (KTFMC) monthly meeting, held Tuesday evening at the Keeneland sales pavilion, were unfamiliar with the unregulated and untaxed gaming machines known as “gray machines.”

The risk these gray machines pose to historical horse racing (HHR) gaming and the state's horse racing industry as a whole were the main topic of the meeting that included a discussion and Q and A session of Central Kentucky legislators. In a panel moderated by the Kentucky Equine Education Project (KEEP)'s executive director Will Glasscock, Senator Amanda Mays Bledsoe (Republican, Lexington), Representative Matt Koch (Republican, Paris), Senator Damon Thayer (Republican, Georgetown) and Senator Reginald Thomas (Democrat, Lexington, minority caucus chair) shared their opposition toward the expansion of gray machines in Kentucky.

“We have not forgotten what the legislature did for us in 2021,” Keeneland President and CEO Shannon Arvin recalled of the passing of SB 120, which continued the operation of HHR gaming, in her opening comments for the meeting. “We have to pay attention to what goes on in Frankfort. We can't just live in our own little world.”

The lawmakers on the panel introduced the growing issue of gray machines, which resemble slot machines but do not qualify as a legalized form of gaming in Kentucky as there is no oversight to their use. These machines, which are marketed as games of skill, are typically located in establishments such as gas stations, convenience stores and bars.

“They are illegal casino games,” explained Sen. Thayer, the Senate Majority Floor Leader. “The proprietors have a business model where they come into a state where there's a gray area in the law, they pay a lawyer to get a friendly opinion that says, 'Yeah, they're really legal.' And then they come in and try to get integrated in local communities.”

The meeting's legislators noted how there is currently no exact count of how many machines are in Kentucky because the machines are not required to be registered or tracked, but it is believed that there are already thousands in use and that their numbers are growing in every county across the Commonwealth.

Rep. Koch explained how the expansion of gray machines poses a major threat to the horse racing industry. While the majority of the revenue from these machines go to out-of-state gaming companies, revenue from HHR goes to support the state's signature industry: horse racing. He said that if gray machines remain, they could cripple the industry and decimate the jobs within it.

“It's going to end HHR. I don't think that's the type of gambling that Kentucky wants to see,” said Rep. Koch.

The panelists explained how these gray machines could also affect the communities they reside in, particularly when it comes to their impact on youth. Since the machines are unregulated, the lack of supervision creates the opportunity for minors to participate.

“You don't want to introduce [teenagers] to gaming at that age. That invites other sorts of bad actions. Keep them away from gaming and illegal activities, because one illegal activity begets another,” said Sen. Thomas.

Thayer said that other states are also working to confront the issues of gray machines. In Virginia, they have been the focus of 150 lawsuits, and in Pennsylvania, they were initially legalized but are now facing issues concerning a legal and regulatory gray area.

During the Q and A, attendees asked for further details regarding where gray machines come from and the entities behind them.

Legislators described how Pace-O-Matic and Prominent Technologies first brought the machines to Kentucky in 2021. The issue of their existence in the state was brought to the floor last year, where the legislature nearly outlawed them, but the House and Senate ultimately could not agree on the bill, so the effort fell short.

Representative Killian Timoney, the sponsor of last year's bill, was present at Tuesday's meeting and said that he will be filing similar legislation this week. Once submitted, it could take up to two to three weeks for a decision to be made as it moves through the legislative system.

The panel emphasized that now is the time for industry participants to reach out to their senators and representatives to help sway votes towards banning the use of gray machines in Kentucky.

“If you want to preserve this industry and see it continue to grow, you need to be ready to reach out,” said Rep. Thayer. “If it doesn't happen now, it will be harder next year as [gray machines] continue to expand like a bad virus.”

Glasscock shared details about the upcoming KEEP Day at the Capitol, set for this Thursday, Feb. 23, which provides members of Kentucky's equine industry and community an opportunity to share with legislators in Frankfort the importance of horses to their districts and to the state's economy. (Click here for more).

“We are on the ropes with this one,” said Rep. Timoney. “I don't know if you all can afford to not send someone to KEEP Day. The horse industry needs to be well-represented on Thursday. It's a signature industry and we need to protect it.

Koch further encouraged industry members to keep the conversation going with their representatives and senators–not only in their districts but across the entire state–concerning the importance of HHR, its impact on racing, breeding and sales and its overall significance to the state's economy.

“We need to spread a positive message of HHR. We're two years into this and it's doing great things for Kentucky. [We need to] reinforce to legislators not to strip that away.”

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