Kentucky Commission Approves New Conditions For HHR, Facility For Kentucky Downs Expansion As Bill Awaits Governor’s Signature

After the passage of Senate Bill 120 last week by the Kentucky House of Representatives, the Kentucky Horse Racing Commission breathed a sigh of relief that historical horse racing (HHR) would become part of the state's legal definition of permitted gambling. At Tuesday's commission meeting, the body began dealing with the next steps for HHR in the state.

SB120 has not yet been signed by Gov. Andy Beshear, only because the state senate recessed before forwarding it on to the governor's office. Once the body reconvenes, Beshear will sign the bill. The governor appeared via video conferencing at the start of Tuesday's meeting to assure commission members he was looking forward to signing the legislation. His signature is expected sometime next week.

Meanwhile, the commission unanimously approved several rule language changes clarifying language related to HHR so it will be in compliance with SB 120. It approved a set of conditions for facilities to conduct HHR in 2021, which among other things will require operators of HHR to present written reports from an independent testing laboratory confirming that the machines are in compliance with state code and constitute parimutuel wagering. The commission must approve the number of terminals, game themes, facility layout, security protocols, and hours of operation.

The association offering HHR will also have to create a initial seed pool to fund a wagering pool, and seed pools cannot be commingled without written authorization by the commission.

Further guidelines were approved to give commission executive director Marc Guilfoil the authority to approve some administrative changes that HHR operators may request. Some of those requests may later be ratified by the full commission depending upon statute, although more minor requests may be approved without the commission members' approval.

The commission also ratified Guilfoil's approval of a request from Kentucky Downs to expand its license to an extension facility in Bowling Green, Ky. The final location for the extension facility and a timeline for its opening have not yet been finalized by the track, but by state regulation it must be within 60 miles of Kentucky Downs without being within 60 miles of another association's racetrack or 40 miles of a simulcast facility. The request will allow the facility to host simulcast wagering and “exotic wagers yet to be determined,” which could include HHR.

The commission approved a request from Keeneland to begin its fall meet on April 2, rather than April 1 as originally requested.

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Churchill Downs Releases Statement on HHR/Senate Bill 120

Churchill Downs Incorporated released the following statement regarding Senate Bill 120, legislation to keep historical horse racing in Kentucky:

“As the House prepares to vote as early as this afternoon on Senate Bill 120, we are asking our Louisville-area legislators to please pass this critical legislation and save local jobs. We are incredibly proud to be a part of this community and are grateful to call Louisville home. Senate Bill 120 is about protecting jobs right here in our city that are held by our parents, siblings, friends and neighbors. That's why we're asking you to move this legislation forward.

“Horse racing and the equine industry are such an important part of Louisville's history, and historical horse racing will allow that tradition to continue. We encourage you to vote yes on Senate Bill 120 and save the jobs and economic development that will help our city grow and flourish.”

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HHR Bill Introduced in Kentucky State Senate

Kentucky State Senator John Schickel and Kentucky Senate President Robert Stivers introduced Senate Bill 120 into the Kentucky State legislature late Tuesday with the goal of keeping historical horse racing in Kentucky and ensuring the future of Kentucky's signature equine industry.

“KEEP applauds Senator Schickel and Senate President Stivers for Introducing Senate Bill 120, Legislation to Keep Historical Horse Racing in Kentucky,” read a KEEP press release issued late yesterday.

“In response to the Supreme Court's ruling on historical horse racing, the legislation will define pari-mutuel wagering to be consistent with how the Kentucky Horse Racing Commission has regulated live racing for decades and historical horse racing for the last 10 years. The legislation also reaffirms that only pari-mutuel wagering on simulcasts of live racing can occur at simulcast facilities. In effect, this maintains the status quo that Kentucky has known for the last decade, ensuring HHR venues can continue or resume operations that are so beneficial to the horse industry and statewide economy.

“This effort is about preserving a system of wagering we've known for live racing for decades and historical horse racing for the last 10 years,” Schickel said last week, as he prepared to introduce the legislation. “This is about maintaining the status quo. Our immediate action as legislators is critical to protecting current and future jobs and economic development across the Commonwealth.”

A ruling in September by the Kentucky Supreme Court stipulated that many of the state's machines do not constitute pari-mutuel wagering and were therefore not allowed. It also required that legislation be introduced to uphold the existing definition of the games as pari-mutuel before the end of the legislative session Mar. 30. The original lawsuit against HHR was brought by the Family Foundation, a conservative organization opposed to gambling and its expansion. Members of the racing industry argue that the loss of revenue would be crippling to racing in Kentucky.

“We applaud Sen. Schickel for championing Senate Bill 120, which will keep historical horse racing in Kentucky and protect critical jobs, economic investment and state revenue at a time when they are needed most,” said the statement from KEEP. “We also thank Senate President Stivers for his support as a co-sponsor of this important legislation. The Kentucky Supreme Court gave the General Assembly clear direction to preserve the status quo, and SB 120 gives us a path forward.

“Historical horse racing is an integral part of Kentucky's signature equine industry and our economy as a whole and has helped position Kentucky as a worldwide leader in racing. With real jobs and investment on the line, we urge the members of the Senate Licensing and Occupations Committee to promptly move this legislation forward so that the commonwealth can continue to benefit from historical horse racing, now and in the years to come.”

SB 120 is set to be heard in the Senate Licensing and Occupations Committee at 11 a.m. Thursday, Feb. 4.

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