STATEMENTS FROM BOB ELLISON AND NICK NICHOLSON
The following press release from the Kentucky Horse Racing Commission, along with statements from Keeneland president Nick Nicholson and Turfway president Robert Elliston, were distributed after regulations were approved to allow Instant Racing wagers at Kentucky racetracks.
Kentucky Horse Racing Commission approves proposed regulations to allow ‘Instant Racing’ wagers at tracks
Commission acts to aid industry
LEXINGTON, Ky. (July 20, 2010) – Wagering on historical horse races will be allowed at licensed Kentucky horse racing tracks under proposed regulations approved today by the Kentucky Horse Racing Commission (KHRC).
Commissioners voted to change the language in existing regulations that address definitions applicable to thoroughbred racing, standardbred racing, and quarter horse/appaloosa/Arabian racing. The existing regulations that govern pari-mutuel wagering for those breeds will be replaced by new regulations that address so-called instant racing or wagering on historical races for all three classifications of racing.
The KHRC also approved new regulations that formalize the approval process for “exotic wagering” with the regulations specific to all three racing classifications. These new regulations will require each exotic wager, whether on a live or historical horse race, to be approved by the KHRC before it can be offered to the public. Previously approved exotic wagers, such as Exactas, Trifectas, and carryover Pick 6, are grandfathered into the new regulations. They also require the racing associations and horsemen to come to an agreement on how to share the tracks’ statutorily approved takeout.
“The Commission staff, at our request, took into account the opinion of the Office of the Attorney General in recommending we adopt these regulations,” said Bob Beck, KHRC chair. “I believe the approval of these regulations will help our ailing racing industry by providing much needed revenue to increase purses and help keep owners, trainers and their horses in Kentucky.”
The Attorney General’s opinion states that wagering on historical horse races is not currently allowed because that type of wagering is not defined by the administrative regulations. The Commissioners, in filing the amended and new regulations, believe this course of action will remedy that issue.
The wagering on historical races is identical to pari-mutuel wagering on live horse races, in that patrons are wagering among themselves, and not against the race track, with the money going into designated pari-mutuel pools. Winning wagers on historical races will be paid solely from these designated pools. Bettors will place wagers on historical races using terminals that operate like the self-service totalizators that many tracks are using today to sell tickets on live races.
The regulations will be filed with the Legislative Research Commission and will go through the administrative regulation review process.
Also today, the Commission, all eight of the licensed horse racing associations in Kentucky and the Kentucky Department of Revenue are filing a petition in Franklin Circuit Court asking the Court to confirm that:
- The Commission has the statutory authority to regulate pari-mutuel wagering of horse racing under Chapter 230 of the Kentucky Revised Statutes (KRS);
- The licensed operation of pari-mutuel wagering on historical horse racing, as authorized by the regulations, does not contravene the statutes prohibiting gambling under Chapter 528 of the KRS, and;
- The Department of Revenue’s determination that revenue generated by pari-mutuel wagering on historical horse races is subject to the pari-mutuel tax is a valid and lawful exercise of its statutory authority to interpret and enforce the tax laws of the Commonwealth.
Statement of Nick Nicholson
LEXINGTON, Ky. (July 20, 2010) – Keeneland President and CEO Nick Nicholson issued the following statement today regarding a decision by the Kentucky Horse Racing Commission regarding pari-mutuel wagering on historic races:
“Keeneland supports today’s move by the Kentucky Horse Racing Commission regarding pari-mutuel wagering on historic races. We appreciate the commission’s commitment to Kentucky’s signature industry and Gov. Beshear’s continued leadership on these issues. The reason is simple: this new pari-mutuel wager would be another tool that we could use to help generate additional revenue to boost purses and assist our industry during an extremely challenging period.
That’s the sole reason for our support.
This model – which has proven to be successful for some 10 years at Oaklawn Park in Arkansas through games called Instant Racing – would simply be another pari-mutuel wagering tool. It is connected to a tote. Patrons wager into a common betting pool. And they are given odds and other information regarding performance just like patrons are given during a meet or simulcast at Keeneland or another racetrack. The primary difference is that with historic racing, pari-mutuel wagers are placed on previously run horse races. You simply don’t know the historical race involved.
That’s what pari-mutuel wagering on historic races is. What it is not is a panacea for the challenges confronting our industry. It would not, frankly, generate the revenues for our industry or our Commonwealth that would be created by other forms of expanded gaming – the types of games that are significantly boosting purses in other states and altering the competitive landscape in our industry.
That said, what our industry has always wanted is the ability to help itself – with tools that will allow us to invest more in our businesses and, most importantly, boost the purses that keep our races compelling and competitive with tracks on our borders and across the country.
A new pari-mutuel wager such as historic racing has the potential to be one such tool. I hope we will be allowed to move forward quickly in assessing its viability so that we can make the kinds of investments that will keep Kentucky’s signature industry the world’s capital for Thoroughbred horse racing — creating jobs and economic growth for our Commonwealth.”
Statement by Robert Elliston, Turfway Park, regarding Instant Racing
FLORENCE, Ky. (July 20, 2010) –Robert N. Elliston, president and CEO of Turfway Park, has released the following statement regarding the Kentucky Horse Racing Commission’s decision concerning pari-mutuel wagering on historic races, or “Instant Racing”:
“It’s no secret that Turfway Park is under stress because we’re unable to compete directly with our next-door neighbors who use gaming to fortify their racing and breeders’ programs. Our recent decision to cut the historic Kentucky Cup series from our fall schedule is only the latest blow and stands in stark contrast to the consistently positive news from our competitors.
“I therefore appreciate the good news from the Kentucky Horse Racing Commission and applaud their initiative in pursuing an option we are allowed to use in addressing our competition. I also thank Governor Beshear for his continued understanding of the plight of Kentucky’s signature industry and his leadership in trying to find workable solutions. While Instant Racing likely may not generate sufficient revenue to put us on equal footing with other states, it could give us a bit of breathing room in the near term.”
Tags: bob beck, instant racing, Keeneland, Kentucky, kentucky horse industry, kentucky horse racing commission, kentucky horse racing industry, Kentucky racetracks, nick nicholson, pari-mutuel racing, pari-mutuel wagering, Paulick Report, Ray Paulick
July 20th, 2010 at 3:59 pm
Dear Rich Guys who control KY horseracing:
Is the next press release you’re going to write gonna thank Sen. Damon Thayer who for 3 years has championed Instant Racing?
I know that the Churchill geniuses and Turfway Park management — poo poo’d Instant Racing — now that they got a little bone from the Guv — and they’re for Instant Racing.
Sounds like they were for it before they were against it or against it before they were for it???? Sounds like Sen. John Kerry in 2004 ….
Listen — if these clowns in the suites of Churchill and Turfway continue to treat the horsemen and others like hired help — they no longer will be rich guys in horse racing — they will be out of a job …
Lets at least get some integrity, morals and consistency back in the game and then we’ll solve some of these problems. If these execs think they can whore themselves out to whomever is in power — just look at where that gets you in the history books!
July 20th, 2010 at 5:52 pm
“Instant Racing remains a popular activity and important revenue stream for the racetrack and its purse structure.” Sounds good to me. Wish we’d get something like that down here in Texas. Then maybe next management-horsemen meeting, they’ll do more than hand us a map to Oklahoma.
Linda
July 20th, 2010 at 11:54 pm
Hey goodgovt-
I am tired of you clowns and your “rich people who run racing” comments and the bashing of Churchill Downs management and other tracks as well. Myself and thousands of other working class people are reliant on the horse industry in Kentucky to make our mortgage payments. We pay our property taxes in Kentucky.
Why are you so happy to watch the hijackers in Indiana and other slots approved states steal tax dollars from Kentucky residents while at the same time destroying the industry that Kentucky has been famous for such a long time-why?
I am at a loss to understand this “rich people” bs. This is an issue for you and all the others who are employed in this industry, from the ushers at Churchill to the tellers at Ellis.
Wake up.
July 21st, 2010 at 8:52 am
I agree this “rich man mentality” is ignorant. If you want to address the rich issue. Yes most of the wealth is the usa is held by 20 percent of Americans, but who do you think works their ass of to aid these rich folks. Yes the virtually now non existant middle class. Like it or not Jobs=paycheck= somenone gets rich= someone else doesn’t. Back in the stone age you had clever man that makes wheel, discovers fire gets credit but everyone benefits. Nothing has changed here genius.
Ignorance leads to intolerance and persecution!
July 21st, 2010 at 12:12 pm
Ace, if goodgovt ceases and desists with the catcalls against track management, will you do the same with the Indiana is “stealing” Kentucky tax dollars comment? That’s like saying Florida is stealing Kentucky’s tax dollars if I choose to take my family to Disney World for vacation.
One other point, there’d be no racetrack “hijackers” in Indiana today if a certain Kentucky track owner didn’t push to have pari-mutuel wagering legalized in Indiana 20 years ago and subsequently build a track and various OTBs.
July 21st, 2010 at 2:19 pm
Name names.
July 21st, 2010 at 3:53 pm
Are you serious? Okay, which Kentucky racetrack operator used to be the majority owner of Hoosier Park? Ring a bell yet?