Claiming Challenge Returns to Belmont

The Under 20's Claiming Challenge, which allows smaller stables the chance to compete for cash prizes, will return to Belmont Park for the spring/summer meet. The program, launched in 2018, is open to all trainers stabled at New York Racing Association facilities with 20 or fewer horses in their care nationwide. The top eight trainers in the contest will share a prize pool of $80,000, with the winner receiving $16,000. Stall allotments for the Belmont spring/summer will be used to determine eligible trainers. Trainers earn points based on their horses' performances in all winners' claiming races from Opening Day Apr. 22 through the conclusion of the Belmont spring/summer meet  July 11.

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Keeneland to Allow Limited Spectators in April

The upcoming Keeneland Spring Meet, to be held April 2-23, will allow a limited number of spectators. Pre-sold ticket packages will be available Monday, Mar. 1, and will include dining, reserved grandstand seating, and general admission. Race participants, sponsors, box holders, and Club members will also be given limited access.

“The enthusiasm and loyalty of our fans are what make Keeneland so special,” said Keeneland President and CEO Shannon Arvin. “We have missed their presence on race days and we are excited to welcome them, albeit in limited number, back to Keeneland. We appreciate the support of the Central Kentucky community this past year, and we hope this step is the first toward somewhat normal operations in the fall.

“While our team has worked diligently on a plan for expanded attendance this spring, the safety of our guests and employees remains our top priority,” continued Arvin. “As such, our COVID-19 protocols remain in place and will be strictly enforced during the Spring Meet.”

All attendees will be required to undergo health screenings and temperature checks on entrance. Face masks and social distancing while on Keeneland property are mandatory. Due to the COVID-19 pandemic, Keeneland cancelled the 2020 Spring Meet and held a five-day Summer Meet in July. Keeneland's Fall Meet and Breeders' Cup cards were held without spectators.

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Belterra Wants To Dismiss Ohio HBPA Lawsuit Over $2.7M in ‘Deprived’ VLT Money

The present and former owners of Belterra Park have filed a motion to toss out a federal lawsuit filed by the Ohio Horsemen's Benevolent and Protective Association (OHBPA) that seeks to recoup more than $2.7 in gaming revenues that the OHBPA alleges the track wrongfully withheld between 2014 and 2018.

According to a motion to dismiss filed Feb. 16 in United States District Court for the Southern District of Ohio (Eastern Division), the defendants are alleging that “OHBPA has failed to state any viable claims against Defendants. OHBPA's cleverly labeled claims are nothing more than an attempt to plead around the fact that there is no private right of action under the relevant Ohio statute or regulation. Quite simply, OHBPA has no right to receive the “catch up” payments and only the Racing Commission is authorized to enforce [the relevant state codes] and the Resolution.”

Back on Dec. 18, the OHBPA's suit contended that Belterra never made good on a four-year difference between a placeholder rate first established for video lottery terminal (VLT) gaming and the eventually revised rate, which it claims totals $2,769,652.

“The OHBPA has been deprived of these funds, which go directly toward the benefit of horse breeding and horse racing in Ohio,” the OHBPA contended in its suit (which is explained in greater detail here).

On Tuesday, the defendants outlined a four-plank argument for dismissing the lawsuit:

“First, OHBPA has no right to the claimed payments under the relevant statutory or regulatory scheme, and even if it did, there is no private right of action for it to enforce the statute or regulation. Although OHBPA crafts its attempt at enforcing the statutes and regulations as tort claims, those claims fail.

“Second, the applicable statute, rules, and resolution regulating the payment of the VLT
commission percentage rates to the horsemen's associations are not retroactive. Therefore,
in contravention of an express contract and statutory and rule authority vested in the Racing
Commission, OHBPA is asking this Court to order Defendants to go back in time and pay
OHBPA additional funds for the time period between May 1, 2014 and July 1, 2018. Quite simply, OHBPA has no right to any extra payments and no authority to bring this action.

“Third, because OHBPA has no right to possess the payments Defendants' retention of
those payment cannot be wrongful, and therefore, its claim for conversion fails.

“Finally, OHBPA's claim for unjust enrichment fails because (a) there is an express contract covering the same subject, which precludes the unjust enrichment claim, (b) OHBPA has not conferred a benefit on Defendants, and (c) Defendants' non-payment of the purported extra VLT
commission rate payments is not “unjust” because OHBPA has no right to those payments…. Defendants have paid all amounts required to be paid and distributed according to Ohio law. As such, Defendants respectfully request that the Court dismiss OHBPA's Complaint.”

Belterra Park itself is named as a defendant, as is the racino's current owner/operator, Boyd Gaming Corporation. Pinnacle Entertainment, Inc., (which, according to the suit, owned Belterra between 2011 and 2018) and Penn National Gaming, Inc. (which, according to the suit, briefly had an ownership interest in Belterra in 2018), are also listed as defendants.

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Slight Delay in HHR Bill’s Signage; ‘Extension Facility’ Greenlighted for Kentucky Downs

Kentucky Governor Andy Beshear on Tuesday reaffirmed his vow to sign the historical horse race (HHR) gaming bill that passed both chambers of the state legislature last week, but he explained that a decision by the Senate to adjourn through this week means that the HHR-enabling measure won't become law until the end of the month at the earliest.

Beshear's remarks came via videoconference at the start of the Feb. 16 KHRC meeting. After the governor spoke, commissioners unanimously voted in a series of “emergency” measures contingent on the bill getting signed into law that are designed to keep HHR churning in the interim so the revenue that helps to pay for purses in the state continues to accrue.

The KHRC on Tuesday also gave the preliminary go-ahead for Kentucky Downs to begin the process of planning to open an “extension facility” that will operate HHR gaming and simulcasting, similar to the satellite location that opened 12 miles from Turfway Park under that track's licensure late in 2020.

State regulations allow each licensed racing association to operate an extension betting facility that's located within a 60-mile radius of its track.

Beshear and KHRC chairman Jonathan Rabinowitz spent the opening part of Tuesday's meeting lauding racing industry participants and regulators and thanking long lists of politicians for working toward the passage of SB 120. But it was not until the close of his seven minutes of remarks that Beshear dropped the only newsworthy nugget of his speech.

“It was unfortunate on Thursday that the Senate went ahead and recessed, which meant when [SB 120] passed the House, they couldn't enroll it and send it to my desk,” Beshear said. “They can't do that until they come back into session. With the news [Tuesday] that they're not coming back this week, it looks like it's going to be all the way into next week.

“That's regrettable,” Beshear continued. “I was certainly here in the [capitol] building Thursday night, and I know it's something that we would have all liked to have [had signed into law]. But, we did get the bill through, and my commitment—I'll make it today publicly—I will sign that bill as fast as it reaches my desk.”

The most telling comment from Rabinowitz underscored that in exchange for the legislature's redefining of “pari-mutuel wagering” so it now includes HHR, the tracks will now be under political pressure to cooperate on pending legislation that will raise Kentucky's taxes on HHR.

“I assured the legislators that this commission is committed to holding the [tracks] to their commitment to work constructively to revise and raise the tax structure of HHR,” Rabinowitz said. “Knowing the leaders that made those commitments, there's no doubt in my mind that the [tracks] will fulfill those promises.”

Prior to the unanimous voice vote that ratified the KHRC's conditional approval of the Kentucky Downs request to expand its licensed premises so it can include a to-be-built extension facility, it was revealed that no location for the HHR/simulcast business has been publicly disclosed, and that no firm timetable has been established for its opening.

Marc Guilfoil, the KHRC's executive director, told commissioners that “My understanding is that they've got it down to two, maybe three [locations as of] a month ago. They did not want to disclose those because of competition.”

Guilfoil added that “I think a timeline is very close to being started now that we got SB 120 passed.”

Jennifer Wolsing, the general counsel for the KHRC, said the Kentucky Downs request
came to the commission back on Dec. 4, and she noted that the new facility will not be within a 60-mile radius of another track or 40 miles from an existing simulcast facility.

Beyond the HHR business that made up the bulk of Tuesday's agenda, the KHRC unanimously approved a live racing request by Keeneland Race Course to drop Thursday, April 1, from its upcoming spring meet. This move allows the track to revert to a traditional Friday opening day; the request had the approval of recognized Kentucky horsemen's groups.

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