Historical Horse Racing Trends: Proposed Additional Machines Could Earn CDI $3.4 Billion Per Year

Historical horse racing (HHR) machines have made a strong contribution to the horse racing industry in several states over the last five years or so, thanks to the fact that HHR revenues have been used by various racetracks to supplement purses for races.

In Kentucky, HHR machines have recently been classified by the legislature as a form of pari-mutuel wagering after a court ruling questioned their legitimacy from a state constitutional perspective. The reclassification allows HHR machines to continue to operate and racetracks and gaming centers across the state plan to expand the number of machines.

Using Kentucky Horse Racing Commission reports of monthly revenues from 2016 to 2021, the graph below shows the trend in the contributions in gross revenues – or handle – per month for all HHR machines in the state. The upward-sloping trend line reflects gross revenues per day per machine.

According to this data, each machine contributes an average of $143,000 per month to total gross revenues. Payouts to customers usually are at least 90 percent of gross revenues, leaving $14,300 profit per machine per month.

With the low labor and maintenance costs that accompany HHR machines, it is easy to see why racetracks and gaming centers in the state want to add more of these machines.

According to recent press reports, Turfway Park in Florence, Ky., and Derby City Gaming in Louisville plan to add approximately 2,000 machines combined over the next several years. According to the information above and holding all else constant, such machines could earn Churchill Downs (the owner of Turfway Park and Derby City Gaming) around $286 million more per month or $3.4 billion per year. At a tax rate of 1.5 percent, this increase could produce around $51 million in tax revenues for the commonwealth per year.

All data is adjusted for and accounts for reduced operating hours in 2020 due to COVID-19 restrictions and precautions.

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‘Tremendous Champion Of Thoroughbred Racing’: Dr. David Richardson Dies At 76

Dr. J. David “Doc” Richardson, the distinguished Louisville surgeon who was an owner, breeder and widely-respected leader in the horse racing industry, died Tuesday at the age of 76. According to the Daily Racing Form, Dr. Richardson had been admitted to a hospital in Saratoga Springs, N.Y. with pneumonia following a COVID-19 diagnosis, then suffered a cardiac event.

“Dr. Richardson positively impacted the lives of countless individuals and meant so much to so many people in this community as well as the horse racing industry,” said Churchill Downs president Mike Anderson. “The Churchill Downs family is absolutely devastated to learn of his passing. He was such a fantastic man of the highest integrity and a tremendous champion of Thoroughbred racing. Our deepest condolences are extended to his numerous friends and family and especially to his children Melissa, Amy and Britton, his wife Maxine and brother Dr. Ron Richardson. Churchill Downs won't be the same without 'Doc' Richardson around.”

Born in Morehead, Ky., Dr. Richardson graduated from Morehead State University and the University of Kentucky's School of Medicine. Dr. Richardson rose to become chief of surgery and vice chair of the University of Louisville's department of surgery. He also was the former chair of the American Board of Surgery and a Regent of the American College of Surgeons.

A cousin of legendary late Hall of Fame trainer Woody Stephens, he bought his first horse in 1975 at age 30 and campaigned his first stakes winner in 1978. Either by himself or in partnerships with others, Dr. Richardson raised and sold more than 1,000 horses that ultimately won races. As an owner, he won more than 100 races in his career. Three-year-old homebred filly Lady Edith provided Richardson and partner Sandra New with a thrill on May 8, 2021 when she won the $108,075 Mamzelle Overnight Stakes at Churchill Downs by a neck at odds of 24-1.

In partnership with his medical and racing colleague Dr. Hiram Polk, Richardson bred and raced multiple stakes winner Mrs. Revere, who won four Churchill Downs stakes races during a two-year reign in 1984-85. Mrs. Revere collected three of those stakes during her 3-year-old season, thus providing Churchill Downs an opportunity to appropriately honor the filly with a Grade 2 stakes event for 3-year-old fillies on turf each fall. They also campaigned the Grade 1 winner Northern Emerald and stakes winners Maria Balastiere, Liz Cee and Harrods Creek.

Dr. Richardson was a member of the Kentucky Horse Racing Commission and The Jockey Club, also serving on the executive committee and board of trustees for the Thoroughbred Owners and Breeders Association, for which he'd been chairman, vice chairman and secretary, and also chaired TOBA's graded stakes committee.

Richardson was on Churchill Downs' racing committee comprised of racetrack representatives and horsemen. He also was a longtime Breeders' Cup board member and past president of the Kentucky Thoroughbred Association and Kentucky Thoroughbred Owners and Breeders.

“We are heartbroken and saddened by the passing of Dr. J. David Richardson, a remarkable man both in the medical community and the Thoroughbred industry,” said TOBA president Dan Metzger. “Dr. Richardson gave selflessly of his time in supporting many of our sport's organizations, including four years as TOBA chairman and nine years on the American Graded Stakes Committee, including seven as chairman. He was admired and loved by the countless he touched throughout the industry and we will forever be indebted to him for his steady leadership at TOBA. We send our heartfelt condolences to his wife Maxine, his children Amy, Britt and Melissa, his brothers Ron and Paul and to his entire family. A life well-lived, he will be dearly missed.”

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COVID-19 Claims Dr. J. David Richardson, Ky-Based Owner, Breeder, Regulator

David Richardson, M.D., a distinguished Kentucky-based surgeon who owned and bred Thoroughbreds for nearly half a century and was known as a thoughtful, cerebral racing regulator whose zeal for the sport shone through in his volunteer service on numerous industry-related boards, died Sept. 7 in Saratoga Springs, New York, after developing pneumonia related to COVID-19.

Richardson had been briefly hospitalized in the intensive care unit at Saratoga Hospital; he was believed to be 76 years old.

Chauncey Morris, the executive director of the Kentucky Thoroughbred Association and Kentucky Thoroughbred Owners and Breeders (KTA/KTOB) organization, confirmed the details of Richardson's passing to TDN. Morris noted in an email that Richardson had been vaccinated against COVID-19.

“David was a remarkable man who touched so many lives in his capacity as a brilliant surgeon, mine included, and seamlessly blended his Eastern Kentucky sensibilities with his dual professions and passions of horse racing and medicine,” Morris wrote. “There are countless people on the backside and frontside who literally owe their lives to David thanks to his keen observations of some health issue which led to first-class treatment, despite [a patient's] ability to pay.”

Tommy Drury, who trained horses for Richardson, wrote on Facebook that, “My heart is truly broken, as I'll never get the chance to thank you for all you've done to make my life better. RIP Dr Richardson. My life just won't be the same without you.”

James David Richardson (he was generally known by either just his middle name or “J. David” to friends) was the first child born into a working-class family in Morehead, Kentucky. According to a biography published earlier this year in The American Surgeon, Richardson was an outstanding student who rose to be valedictorian of his high school class, winning a state essay contest on ethics and citizenship while also teaming to win the Kentucky debating club championship.

Richardson graduated from Morehead State University in just three years with a near-perfect grade point average, then was awarded a scholarship to the University of Kentucky (UK) medical school.

Upon graduating from UK in 1970, he was recruited as an intern and resident to the Department of Surgery at UK, then transferred to the University of Texas at San Antonio where he completed both general surgery and thoracic surgery residencies. Richardson subsequently became one of the nation's few quadruple board-certified surgeons (general, thoracic, vascular and critical care surgeries).

Soon after, Richardson was recruited to the faculty of the University of Louisville, where for decades he served as a professor and later as vice chair of surgery. In 2014, he was elected president-elect of the American College of Surgeons.

“I did big surgery,” Richardson told TDN in a 2019 profile. “The first liver transplants in Kentucky, for example. I ran a trauma program for years. Major surgery is extraordinarily high stakes, high risk, high reward–and a lot of pressure. But while I've never had to do horses for business, I'm very sympathetic with people who do. If you've paid a big stud fee, or bought a high-priced mare, and are counting on that to make your nut for the year, I would think that's a very intense thing. Great when it works, terrible when it doesn't. It's not like life and death. But it's certainly a lot of pressure.”

In response to Richardson's passing, the University of Louisville Hospital released a statement Tuesday which read, “U of L Health extends its sympathy to his family and is grieving with them. He was an outstanding mentor and skilled surgeon who saved the lives of thousands through his work and education of many future doctors. Dr. Richardson was a beloved member of our family and will be missed.”

Horses had fascinated Richardson since boyhood, when he would leave friends at the Coney Island amusement park in Cincinnati to bluff his way, underage, into the adjacent River Downs racetrack. He bought his first Thoroughbred in 1975, at age 30, and had his first stakes winner in 1978.

“I enjoy all aspects of it,” he told TDN. “I like to bet. I like to breed horses. I love to race horses. Even in claiming races, I still get a kick out of winning.”

While carving out a career as a young medic, Richardson was taken under the wing of Hall-of-Fame trainer Woody Stephens, who was a family member and, like Richardson, had also risen from modest means in rural Kentucky to achieve wider success in his chosen field (Richardson called Stephens “Uncle” even though the trainer was Richardson's father's cousin). Through Stephens, Richardson availed himself of opportunities to learn everything he could about selecting, raising and training racehorses.

By the early 1980s, Richardson had learned enough to get involved in picking out some of the better-known horses campaigned by owner Henryk de Kwiatkowski that Stephens would go on to train. Among them were Danzig, Conquistador Cielo, and Sabin.

According to his American Surgeon bio, around the mid-1980s, Richardson began to devote more time to owning his own horses, especially broodmares. “Either by himself or in partnership with others, he has raised and sold over 1,000 horses that have ultimately won races at different tracks,” the bio stated. As of earlier this year, Richardson owned about 40 horses in various stages of development.

“I've spent tens of thousands of hours working things out,” Richardson told TDN in 2019. “I've looked at thousands of yearlings. I've looked at broodmares, November and January, snow knee-deep or bitter, freezing my butt off. So to me, that's part of paying your dues, and trying to become better versed, and staying up with the game. Because if you really do that carefully, you see how sometimes horses that win races aren't the prettiest things, or the best conformed.”

When it came to acquiring his own horses, Richardson relished that challenge of coming up with overlooked contenders that outran their auction purchase prices. In 1991, he bought eventual MGSW Northern Emerald in partnership for $55,000; she won the 1995 GI Flower Bowl H. Richardson also co-owned the homebred MGSP Mrs. Revere in the 1980s; that filly now has a stakes race named in her honor at Churchill Downs.

Richardson was a member of The Jockey Club, and twice served as president of the KTA/KTOB. He served as chairman of Thoroughbred Owners and Breeders of America and also as chair of its American Graded Stakes Committee. He also served on the Breeders' Cup Board of Directors.

“It's a tough business, but it's a great sport,” Richardson told TDN in 2019. “Horses are such wonderful creatures. I take a lot of people out to the track–we do it every year with the surgical residents–and the joy people have when they experience racing, even as novices, is amazing to see. So I hope we never lose that.”

According to Morris, Richardson is survived by his wife, Maxine, and three children.

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UOFL Equine Industry Series in Person in ’21

The University of Louisville Equine Industry Program (EIP), in conjunction with Horse Racing Nation, released its free Fall 2021 speaker series, which will be held in person this year on the UofL campus. The series includes panel discussions on the “Super Card” trend in racing and growing racing through diversity and inclusion.

The final event in the series will be an interview with Houston business owner, philanthropist and horse owner Jim “Mattress Mack” McIngvale. The events will be held from 5:30-6:45p.m., and will be broadcast live on the Horse Racing Nation Facebook page.

This year's series features:

Sept. 14  – “Examining Horse Racing's 'Super Card' Trend,” Horn Auditorium – UofL College of Business

  • Eric Halstrom – vice president and general manager of racing, Indiana Grand Racetrack & Casino
  • Ben Huffman – vice president, racing and racing secretary, Churchill Downs and Keeneland
  • Jon Moss – executive director, Iowa HBPA Inc.

Panel moderated by Jude Feld, racing analyst and contributor, Horse Racing Radio Network.

Oct. 12  – “How Racing Can Grow Through Diversity and Inclusion,” UofL Student Activities Center

  • Jason Wilson – chief operating officer, 1/ST Content
  • Greg Harbut – founder and president, Harbut Bloodstock
  • Ron Mack – executive director, Legacy Equine Academy

Panel moderated by Alicia Hughes – digital content editor, TVG/FanDuel.

Nov. 9  – “An Evening with “MATTRESS MACK,” aka Jim McIngvale,” UofL Student Activities Center

The series concludes with an entertaining evening with Jim “Mattress Mack” McIngvale, known in racing circles for his strong opinions on the sport, horses running medication free and supporting the ecosystem of horse racing by placing wagers at the racetrack instead of advance-deposit wagering accounts.

Tickets are required for the free events. For more information and tickets, contact Kimberly Spear at kimberly.spear@louisville.edu or 502-852-7727.

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