After Probe over Unlicensed Operation, Twinspires Exits New Hampshire

Five months after New Hampshire gambling regulators and the state's attorney general disclosed that they were investigating the TwinSpires advance deposit wagering (ADW) platform over concerns that the Churchill Downs, Inc. (CDI)-owned entity has operated for years without being explicitly licensed there, TwinSpires is ceasing operations in the Granite State.

Back in April, Charlie McIntyre, the executive director of the New Hampshire Lottery, which regulates all forms of gambling in the state, told WMUR-TV that “They're not regulated by us, nor do they operate on any confines of state law…. It's a concern for us, obviously, because all other gambling in the state happens through us-either we license it, or we regulate it. In this case, neither.”

At that time, McIntyre estimated the amount of lost revenue because of TwinSpires not giving the state a cut of its betting business at “hundreds of thousands of dollars.”

McIntyre continued: “They've been doing it for a number of years, and so it's a significant amount of money.”

TwinSpires customers in New Hampshire began receiving emails Sept. 29 informing them that “TwinSpires has elected to cease operation of its ADW Platform for Horse Racing in the state of New Hampshire.”

The email stated that TwinSpires will take wagers from New Hampshire residents on races conducted through Nov. 5th, the concluding day of the Breeders' Cup championships.

After that, the email stated, “Wagering will be suspended on Nov. 6th, and Players will have until Nov. 21 to withdraw funds from their account.”

A Friday afternoon query to Tonya Abeln, CDI's vice president of corporate communications, did not yield a reply prior to deadline for this story.

Nor could McIntyre be reached Friday afternoon to get the lottery commission's perspective on the TwinSpires pullout.

Back in April, CDI officials told the gaming news site casino.org that TwinSpires was “legal and compliant with the federal Interstate Horse Racing Act.”

A FAQ page provided in CDI's email to New Hampshire customers cited non-specific “regulatory changes in New Hampshire” as the gaming corporation's reason for vacating the state.

“As of right now we do not know what the future holds for TwinSpires as an ADW Platform for Horse Racing in New Hampshire but we are hopeful to serve you again soon,” the FAQ page stated.

In April, McIntyre told WMUR-TV that he had approached CDI about resolving the issue, but that “nothing has happened yet.”

New Hampshire no longer has live pari-mutuel racing of any breed. Thoroughbred racing ceased at Rockingham Park in 2002, and harness racing ceased there in 2009. The state had three greyhound tracks operating at the start of the 21st Century; two of them stopped racing before dog racing was banished in New Hampshire in 2010.

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KY Supreme Court Won’t Hear HHR Legality Case

The Supreme Court of Kentucky ruled Jan. 21 that it will not rehear an appealed Sept. 24 decision that told a lower court to re-examine the legality of historical horse race (HHR) gaming in the commonwealth, keeping the most crucial form of funding for purses at the state's five Thoroughbred tracks in peril.

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 the Kentucky purses. This form of gaming has been operational–but challenged by opponents in the courts as illegal–for the better part of a decade on the grounds that HHR does not meet the definition of pari-mutuel wagering.

Although Thursday's Supreme Court decision was not entirely unexpected, it eliminates an avenue for keeping HHR functional in Kentucky, making it clearer that getting HHR passed via new legislation remains the Thoroughbred industry's best path forward, according to some stakeholders.

Tonya Abeln, the vice president of communications for the gaming corporation Churchill Downs, Inc. (CDI), told the Louisville Courier-Journal that, “The Kentucky Supreme Court clearly told the industry to work with the General Assembly on achieving a legislative solution. Our top priority for the 2021 legislative session is maintaining the status quo to ensure historical horse racing can continue operating in Kentucky as it has for the past decade.”

CDI, which owns the tracks and gaming licenses associated with Kentucky's Churchill Downs and Turfway Park, has already halted reconstruction on its demolished Turfway grandstand, vowing late in 2020 not to continue until HHR's legality gets sorted out.

Officials at Keeneland Race Course told WTVQ in a statement that, “We are aware of the decision and are evaluating our options moving forward.”

Although the Supreme Court case only involves HHR machines of a particular brand, the gaming systems operate in broadly the same manner throughout Kentucky, meaning that a precedent established for one version is likely to affect all forms of HHR gaming.

But the near-term fate of HHR remaining operational was still murky as of Thursday evening.

“The Kentucky Horse Racing Commission [KHRC] will act in accordance with the terms of the judgement entered by the Franklin Circuit Court, pursuant to the September 24, 2020, opinion of the Kentucky Supreme Court,” stated a Kentucky Public Protection Cabinet statement posted to Twitter. “The KHRC will not provide additional comment at this time, due to ongoing litigation.”

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Kentucky Supreme Court Declines To Review Historical Horse Racing Decision

The Kentucky Supreme Court issued a brief statement on Thursday in which it declined to reconsider the unanimous decision on historical horse racing machines issued on Sept. 24, 2020, reports the Courier-Journal. The request was issued by the Kentucky Horse Racing Commission and state's racetracks.

Meanwhile, legislative solutions to legalize historical racing machines are in the process of being crafted. Among the supporters of historical racing are Gov. Andy Beshear and Kentucky Senate Majority Floor Leader Damon Thayer.

“Our top priority for the 2021 legislative session is maintaining the status quo to ensure historical horse racing can continue operating in Kentucky as it has for the past decade,” Tonya Abeln, vice president of communications for Churchill Downs, Inc., told courierjournal.com. The preservation of the associated $5.2 billion economic impact statewide as well as the direct and indirect jobs of 60,000 Kentuckians impacted by HHR is now in the hands of the Kentucky General Assembly.”

Read more at the Courier-Journal.

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