Posts Tagged ‘keep’

The following op-ed, written by KEEP Executive Director Patrick Neely, is a well thought out plea for a reconsideration of expanded gaming in Kentucky. Refreshing in its details, it is clear that not only does KEEP want to continue to push for expanded gaming through collaboration but is also open to other ideas to help Kentucky’s signature industry.

- Bradford Cummings

By Patrick Neely
Executive Director, Kentucky Equine Education Project

During the last month, much has been written about expanded gaming in the context of our state budget crisis. Lost in most of the discussion about whether money from expanded gaming should be used to fill budget holes is the simple and sad truth that our signature horse industry is in a rapid state of decline.

It is not disputed, even by opponents of expanded gaming, that competitor states are successfully stealing our industry right out from under our noses. Using money from expanded gaming to significantly boost their purses and breeders’ incentive funds, states like Pennsylvania, Indiana, West Virginia and Louisiana are luring our racehorses and breeding stock out of Kentucky.

When horses leave, jobs go with them. Every horse that lives in the state of Kentucky is like a little factory, a full-blown jobs creator. Every horse requires people to grow their food, give them vet care, transport them, produce and sell tack and other equipment, build their barns and paint their fences, care for them on a day to day basis, shoe them and train them. Most racing and breeding stock also create jobs in the legal, insurance, advertising, and banking fields. Not to mention all of the employees at industry trade publications, sales companies, and of course, Kentucky racetracks. And how about the millions of dollars that come from worldwide tourists who recognize the beauty and attraction of our industry?

It is beyond dispute that tens of thousands of Kentuckians depend on the horse industry to make their living. And without a doubt, those jobs are being lost or moved to other states at an alarming rate.

The most common complaint I hear is that if our industry cannot stand on its own two feet, it does not deserve any special treatment. This would be akin to telling the University of Kentucky that they are not allowed to offer scholarships to their athletes, and then expecting them to “stand on their own two feet” and remain competitive. The simple truth remains—if your competitors are given a significant advantage, it makes it nearly impossible to compete. That is why the industry has been so steadfast in its request for a level competitive playing field.

In the wake of a recent Bluegrass State Poll that showed overwhelming support for putting video lottery terminals (VLTs) at Kentucky racetracks, and similarly showed an overwhelming desire of Kentucky residents to vote on the issue of expanded gaming, it has been suggested that the industry should support Sen. Damon Thayer’s proposed constitutional amendment, which would finally “let the people decide.”

It should first be noted that Sen. Thayer has done much good for Kentucky’s horse industry, including strong support of the Breeders’ Incentive Fund. However, we fundamentally disagree with Sen. Thayer’s approach to this problem. First, an amendment could not be voted on before November. It seems a foregone conclusion that our out of state competitors, who have spent tens of millions of dollars to defeat gaming amendments in other states, would no doubt spend whatever it took to defeat an amendment here in Kentucky. But assuming an amendment would pass, where does that get us?

According to Sen. Thayer’s amendment, the legislature is not required to allow VLTs at racetracks, even if an amendment did pass. It simply gives the legislature the option to do so. In other words, even if an amendment passed, we would be in the exact same place we are right now in 2011, asking the legislature to pass a statute allowing VLTs at Kentucky racetracks. If they won’t pass such a law now, why would they pass it a year from now? We don’t need a referendum to know that Kentuckians support the concept. Poll after poll has demonstrated that a wide majority of Kentuckians believe we should have VLTs at Kentucky tracks. So why not just pass the statute right now?

If the industry were to clear the amendment and legislative hurdles, the Thayer provision then calls for a local referendum to approve VLTs at tracks. If the local referendum passes, then VLTs go out to a bid process that is open to everyone, and the machines do not have to go to racetracks. So a big out of state casino company could open a stand-alone slots facility in the same cities as our racetracks. After the bidding, a license procedure would have to take place, and if New York and Maryland are any example, the bidding and licensure process can last several years. Finally, once all of that is accomplished, the winning bidders would have to build the facilities and get up and running.

Even if the industry cleared every one of those numerous hurdles, the process would quite clearly last several years. The industry cannot wait several years for permission from state government to compete. We are losing horses and jobs today. Timely action is critical.

So where does that leave us? Our industry is willing and anxious to work with our elected officials to arrive at a creative solution. The Speaker of the House has offered an idea that seems to be the right compromise. His plan would allow cities that have racetracks to vote on whether those tracks should be allowed to install VLTs. This proposal should answer most everyone’s objections. The local referendums could take place as soon as this summer, and would be handled in a manner similar to wet/dry alcohol votes. Assuming the measures passed, money could flow to purses, breeders’ incentives and other worthwhile programs in a very short time after that. This proposal should also satisfy those legislators who want to “let the people decide.” Under this scenario, the people who live in communities with racetracks will make the decision whether or not they want VLTs in their communities. This system works for alcohol sales, so why not use it to decide the VLT question?

Another idea is to slightly lower the pari-mutuel tax, and to divert the tax proceeds to purses and breeders’ incentives. Kentucky racetracks are double-taxed on the wagers they receive (pari-mutuel tax and corporate income tax), so if the state wants to continue double-taxing the industry, it would make sense to send some of that tax money back to support the industry. A tax reduction and redirection could save our struggling racetracks a small amount, and could redirect funding into purses and breeders’ programs. That change would not come close to leveling the playing field, but it would be a good start.

Horse owners, breeders, trainers, and racetrack operators are willing to work in a collaborative fashion to solve this monumental crisis in the industry. The only option that is unacceptable is legislative inaction. The future of our signature industry and thousands of Kentucky jobs are at stake.

Kentucky State Senator Damon Thayer delays consideration of his constitutional amendment bill to build a larger consensus, reports the Blood-Horse’s Ron Mitchell.

"I am getting a lot of feedback from people in the horse industry that they are disappointed in the horse industry leadership for opposing my bill," Thayer said. However, he fails to name any names.

His bill has some troubles with the biggest one being his opposition to VLT exclusivity at racetracks. Thayer calls it ‘a debatable point.’

Click here for the full article from the Blood-Horse

Then come back to the Paulick Report and let us know what you think.

- Bradford Cummings

By Bradford Cummings

As we enter into the 2010 general session of the Kentucky House and Senate, it is important for Kentuckians to take a moment and look back at where we have come from in this fight to level the playing field with other states through expanded gaming in the Bluegrass State. While I am a bit of a latecomer to the discussion, my desire to merely add onto the gaming menu we already have at Kentucky racetracks grows with each day. As a Republican, one who rose to the position of chairman for the largest county in the state, the debate against slots at racetracks confuses me.
 
The Republican Party I signed up for was one that wanted less government control and more economic expansion. Talking to some of you in the last year, I suspect there will be many shaking their heads in agreement when I say that putting the irresponsible behavior of those few who would put their mortgage on the line for a slots jackpot should not hold more weight than the economic impact of killing our signature industry. Allow me to make my own decisions and stop shielding me from the consequences. That’s a party I can fully get behind and that’s the broken promise that finds many citizen GOPers very frustrated with the current climate.
 
Yet despite the party of Reagan falling off the edge in an overly zealous attempt to stonewall this economic issue of choice, it is important that we look back at the last couple of years and see how far we have come. The horse industry lost the last special election when Republican Jimmy Higdon beat Democrat Jodie Hayden, so it is easy to lose sight of our progress. But remember that election, for an open Senate seat in the 14th district, was about the lack of support for President Obama in Kentucky, not an opposition to expanded gaming.
 
A LOOK BACK

In 2007, our sitting Governor based his entire reelection campaign on the opposition to gaming. The Speaker of the House, a Democrat, was so unsupportive that he had never taken the issue to a committee vote much less the entire House.
 
While the Senate majority for the anti-slots argument is still intact today, it was much larger then and showed little chance of the needle moving on this issue.
 
And most troubling, a statewide poll showed that about 40% of Kentuckians supported putting VLT’s at racetracks.
 
SINCE 2007
 
The industry supported a candidate in a crowded Democratic primary field who largely based his campaign on expanded gaming. Not only did he win the nomination, but he was overwhelmingly elected Governor.
 
Greg Stumbo challenged Jody Richards, the aforementioned former Speaker of the House, and the horse industry worked tirelessly and effectively behind the scenes to help elect the pro-slots Stumbo.
 
The Kentucky Equine Education Project, or KEEP, has become an integral part of the discussion, becoming a strong branding tool for the state’s signature industry. KEEP has helped launch a broad-based communications and grassroots effort to educate Kentuckians about what the horse industry means to citizens of Kentucky. The focus was properly taken off the millionaire hobbyists and placed on the tens of thousands of farmers, insurance agents, feed companies and backstretch and farm workers that make this industry so important to our future.
 
HEADING INTO 2010
 
And where do we stand today? We have a Governor in Steve Beshear who is solidly committed to helping our industry by pushing for VLT legislation.
 
We have a Speaker of the House who drafted the legislation, helped push it through committee, brought it to the floor of the House and passed it. All firsts.
 
We have staged two extremely successful rallies – one in Frankfort and one at Keeneland – that had over 1,000 industry participants in attendance. While this industry is relatively new to political activism, we are certainly up for the fight!
 
And most importantly, we have significantly moved the needle on public opinion as a statewide survey taken before the Special Session this summer demonstrated support for racetrack VLT’s at 69%. This is a dramatic and unprecedented change in mood on what has been portrayed as a divisive issue. Can you imagine gay marriage shifting nearly 30 points over three years in Kentucky?
 
GETTING OVER THE FINISH LINE
 
Moving over the finish line and securing the victory that a clear majority of Kentuckians want to see will, just like in other endeavors, be the most challenging and rewarding part of this journey.
 
We must continue to support the efforts of KEEP, who under the leadership of former Democratic Gov. Brereton Jones and executive director Patrick Neely (a fellow Republican of mine) have helped push the needle in the right direction. Both have been instrumental in the progress described above.
 
We must not let up on our leaders in Frankfort. Continue to call your legislators and let them know how you feel. Ask your friends, family and associates to do the same. (Pick up the phone, dial it and hand it to them if you have to for God’s sake!)
 
Continue to support candidates that support the industry, both financially and through volunteer hours. And make sure to not only look to Democrats but also to pro-slot Republicans. I promise they’re out there.
 
Take heart in Attorney General Jack Conway’s opinion this last week that Instant Racing is constitutional with a few tweaks from the Governor’s office. This greatly hurts the rationale from those who claim passing slots legislation would get tied up in our court system for any extended period of time. Is Instant Racing that much different than a slot machine when opponents cite the major concern over slots as the speed in which a person can lose their money? Don’t ignore this development as insignificant.
 
Finally, despite what you feel about Damon Thayer’s amendment proposal, at least understand that this coming from a Republican in David Williams’ Senate means we are having an effect on the process. Can anyone imagine Williams allowing a member of his caucus to propose this type of legislation even last year? Indeed, this may be the strongest sign that the pendulum is shifting in our direction.
 
We are by no means out of the woods in this fight to save our industry. But there is also no doubt that it is a fight that can be won. Whether we find ourselves victorious in this year’s general session or if we have to fight it out at the polls in November, we must always remember just how far we’ve come in such a short period of time.
 
This is the year we take control of the conversation.
 
This is the year we have all been working so hard to be a part of.
 
This is the year of victory for the horse industry.
 
We have too much at stake for it to be any other year.

Copyright © 2010, The Paulick Report

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By Ray Paulick
Every Kentuckian’s favorite piñata, Republican state Sen. Damon Thayer, was Mike Penna’s guest last Saturday on the Horse Racing Radio Network’s “Equine Forum,” discussing, naturally, the issue of slot machines at Kentucky racetracks.

(To listen to a rebroadcast of the interview, click here.)

Thayer is feeling his oats these days, following the drubbing Republican Jimmy Higdon gave the horse industry-backed candidate, Jodie Haydon, in the recent special election for a Senate seat in the 14th district made available when the Republican incumbent accepted a judgeship offered by Democratic Gov. Steve Beshear. Had Haydon defeated Higdon, the Republican majority in the state Senate would have been wafer thin and the heavy-handed rule of Senate president David “Blackjack” Williams might have been in jeopardy.

But Williams and, I would assume, Mitch McConnell, the U.S. Senate’s minority leader from Kentucky, devised a brilliant last-minute scheme targeting prominent Democratic leaders Nancy Pelosi and Harry Reid as Higdon’s real opponents. It was enough to turn the election in Higdon’s favor in this rural, conservative district, where Democrats in name only outnumber Republicans in voter registration rolls by a wide margin. Higdon won despite being heavily outspent by Haydon, thanks in large measure to a 527 organization, Keep Our Jobs in Kentucky, formed by prominent members of the horse industry who backed Haydon because of his position in favor of video lottery terminals or slot machines at Kentucky racetracks.

Thayer is feeling much maligned these days as a result of his non-support of a bill permitting racetrack VLTs that died in a Senate committee last summer and his more recent proposal for a constitutional amendment on the issue. That proposal fell on deaf ears during an October meeting with horsemen who called the measure “too little, too late.”  (click here for details). In the wake of the horse industry’s recent setback at the polls, Thayer said he plans to push his proposal forward in the legislative session that begins in January and urged leaders of Kentucky’s horse industry to get behind it, or at the very least work with him on the bill.

“It’s not beneficial to the horse industry that despite the election loss they keep speaking out on my bill,” Thayer said during his radio appearance. “I have some Republican votes for this bill. I think you’ll be surprised by the number of Republicans who would vote for this. Democrats said they would block vote against this, which I think is fraught with peril.”
 
Thayer repeated his stand that he believes “slots by statute”–as he called the bill that was passed by the House but stopped in a Senate committee last summer—is not constitutional and would be held up by a lengthy legal challenge if it passed. Kentucky’s current attorney general said the statute would not be unconstitutional, though previous attorneys general opinions have gone the other way. “And by the way,” he added, “it is dead for the foreseeable future, OK, because there are not the votes in the Senate.”

A horse industry consultant who formerly worked for Jerry Carroll at Turfway Park and as an executive with the Breeders’ Cup, Thayer said he understands the economic pressure the horse industry is facing from the slumping economy and gaming in other states that is subsidizing tracks and purses. “There is no doubt, absolutely no doubt, the horse industry in Kentucky is suffering from not only the downturn in the economy, as is the horse industry throughout the United States, but also from an uneven playing field. I get it. I worked at Turfway Park when casino boats landed in Indiana.”

Thayer said many in the horse industry misunderstood the challenge those casino boats presented at the time. “No, no we don’t need to worry about those riverboats in Indiana, we don’t need to worry about casinos and slot machines in surrounding states” he cited as the prevailing opinion. “We’re Kentucky. We can withstand that. All those people changed their opinion.”

Penna challenged Thayer on the timeline a constitutional amendment would present, along with language in the bill that would open bidding on VLTs to businesses other than racetracks in the seven Kentucky counties were tracks exist. Thayer’s proposal, if it is approved by the legislature and passed by a simple majority of Kentucky voters in November, would then require local referendums, followed by a bidding process.  Opponents have said implementation could stretch out until 2012 or ’13 if approved, but Thayer said slots could be up and operating as early as mid-2011. He also thinks the statewide referendum “could pass…my personal opinion is it’s probably a tossup. I believe the horse industry has made progress convincing people of the importance of this industry to every county. I think you shouldn’t be afraid of having a statewide debate on this issue. It would be huge. Huge. The press would cover it. You would get an opportunity to make your case like you’ve never done before in a statewide debate, and I think it would have a chance of passing.”

As for opening the bidding process to non-racetracks, Thayer said, “These slot licenses are things of value to the Commonwealth.” One of the things he said he heard during last summer’s failed effort to pass legislation was, “Why do the racetracks get a monopoly on this?”

Thayer chided the horse industry to work with him on the legislation calling for a constitutional amendment, which he said the Kentucky Equine Education Project and pro-slots Gov. Beshear previously supported. “Somewhere along the way in the last 12 months they changed their positions and decided they wanted to pursue what I call slots by statute,” he said. “People see (Beshear) has flip-flopped on the issue…and he has egg on his face.”

“My bill is the only bill that has the potential of passing the next legislative session,” he said. “A hundred million dollars would go into purses and breeders incentives in Kentucky…I guess I’m struggling to find out what part of $100 million doesn’t benefit the horse industry…

“I’ve had this proposal out since September. That’s three months ago. I put it out there early so we could have a discussion about it and people could talk to me about what they have issues with in the bill. Since then all that’s happened is people have criticized me and questioned my motives. If they really want to pursue this they need to come talk with me. This is a very controversial issue that’s been debated since 1993. It’s time to move the bill.”

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Press Release

(LEXINGTON, Ky.)— In a meeting held this morning, the Kentucky Equine Education Project Board of Directors unanimously voted to redouble their efforts to protect Kentucky jobs and put our signature horse industry on a level competitive playing field.
 
“As we all know, our competitor states are using revenue from expanded gaming to enhance their purses and breeders incentive funds, which is causing a severe loss of Kentucky racing and breeding stock to those other states,” commented KEEP Chairman Brereton Jones. “When horses leave our state, jobs go with them, from the farmer who grows the hay, to the veterinarian, feed supply salesperson, equipment manufacturer, groom, equine insurance agent and on and on.”
 
“One-hundred thousand Kentuckians depend on the horse industry for their livelihoods. We have a duty to make our industry as healthy as possible, to bring back the jobs that have already left the state, and to protect and create new jobs right here in Kentucky. We have no choice but to keep fighting for our industry.”
 
“The KEEP Board voted unanimously to pursue a legislative strategy that would save jobs and provide immediate relief by putting our industry on a level competitive playing field,” continued Jones. “The Board also voted unanimously to further engage our 15,000 members statewide in the political and fundraising process, and to continue the trend of growing our membership across the state. Our industry is committed to recruiting and supporting candidates that will support the horse industry.”
 
“This will continue to be an industry wide effort,” concluded Jones. “Seventy percent of Kentuckians agree that our industry should be put on a level competitive playing field, and a bill passed the House of Representatives for the first time ever this past June. We are so close to reaching our goal, and our resolve has only strengthened. We will not quit until the fight is won.”

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Not all is well in the kingdom of David Williams, Kentucky’s State Senate President and the state’s most powerful Republican not named Mitch McConnell. Republican Senators continue to drop like horseflies as a result of Williams’ strident anti-slots view with another possible casualty coming up soon in the race between Democrat Jodie Haydon and Republican Jimmy Higdon.

As a former Republican leader, I can promise you this makes many among the party faithful nervous. An increasing number are wondering why we are choosing to die on this cross. Is this really a core Republican issue on the same par as lower taxes and less government? Shouldn’t we have a pro-economic development stance on this issue instead of obstructing growth for political purposes? And in a state that already has pari-mutuels and a state lottery, haven’t we already crossed the pro-gambling threshold anyways?

With the prospects for Republicans losing the Senate becoming more likely, conservatives in Kentucky are increasingly concerned about the consequences. Even more important than not controlling a single branch of state government, the redrawing of the US Congressional districts will be done by the Senate. If Democrats have control, they will change the make up of the Kentucky coalition of Congressmen for the foreseeable future. Most maddening, this all could have been avoided if David Williams hadn’t decided to put all his eggs in this fringe issue’s basket. This is the problem with the modern Republican party; we spend too much time on 50/50 divisive issues like gay marriage and slots at racetracks and don’t concentrate on important "kitchen table" policy that people really want to hear about.

My former organization, with no prodding from yours truly, sent out an interesting email last night asking a few simple questions about the gaming issue. That in itself is not a huge deal, but the wording and sources cited make it clear that at least from the big city Louisville Republican perspective, Bill Farish’s hope for a palace revolt may not be too far behind. Not only do they lay out the case for slots in Kentucky, but they use the facts page from KEEP, an organization most recently known for promoting expanded gaming in the Bluegrass State.

Having been on the receiving end of many disgruntled phone calls after the Senate debacle this summer, I can tell you the Louisville natives are restless. I was able to fully use my voice on this issue once I left my position as chairman. It’s good to see the wind of change are allowing the Jefferson County Republican Party to begin speaking out as well.

- Bradford Cummings

AN EMAIL DISTRIBUTED BY THE JEFFERSON COUNTY REPUBLICAN PARTY
PLEASE FEEL FREE TO TAKE THE SURVEY LINKED AT THE END

When people think about Kentucky they think about horses, and the Kentucky Derby.  The horse industry employs over 100,000 people, and is Kentucky’s largest agricultural cash crop.  To learn more about the economic impact of the horse industry in Kentucky go to: www.horseswork.com/facts.htm.

But the horse industry in Kentucky is in trouble. Our racing stables and breeding stock are being moved to other states.  The reason is simple economics.  These competing states are subsidizing their thoroughbred industries with the proceeds from slot machines.  These subsidies help them to attract racehorses from Kentucky with higher purses, and studs and brood mares with incentives for horses foaled in that state, and are seriously undermining the preeminence of Kentucky’s horse industry.   The importance of the horse industry to Kentucky is undeniable.  The question is how we maintain our competitiveness with subsidized racing and breeding in other states. 

Tell us what you think.  Respond to our survey on this issue at www.louisvillegop.com. 

KEEP just released an editorial in response to KY State Senator David Williams’ criticism of the Thoroughbred industry’s desire for alternative gaming in Kentucky. Are you moved by this editorial? Where do you stand on the slots issue and have any of the recent editorials changed your mind one way or the other? The Paulick Report wants to know. - Bradford Cummings

In a recent response to an editorial by Bill Farish entitled, “Gambling, Not a Partisan Issue,” Sen. David Williams continued to attack Kentucky’s horse industry in a misguided attempt to divide and conquer horsemen.
 
What Sen. Williams doesn’t understand is that his attacks only further cement the unity among our industry to seek alternative gaming at racetracks. The horse industry is more united today than at any time in our history because we understand the enormity of the threat posed to our competitiveness. We live it every day as we watch our racing dates eliminated, our purse money decline and owners and trainers ship horses to states where purses and breeder incentives are enriched by gaming revenue.  
 
Sen. Williams began his editorial by saying expanded gaming is “bad economic policy for the state and for the horse industry.”  I firmly disagree. Isn’t it bad economic policy for the state to stand by while its signature horse industry declines because we lack the competitive tools other states are using to capture what Kentucky already has? Kentucky has a horse industry that is world-renowned for its product. It generates a $4 billion economic impact. It supports 100,000 jobs statewide. But in the end, Kentucky’s bond with the horse cannot be measured by mere economics. It is that intangible that makes Kentucky unique.  
 
Let’s take Sen. Williams’ points one by one.
 
Sen. Williams says, “expanded gambling will flood Kentucky with funds that will skew our body politic.”
In his response, Sen. Williams calls into question the Farish family’s affiliations and makes mention of political corruption in other states where gaming is allowed. This personal attack on the Farish family is an all-time low point in the gaming debate and will not go unanswered.
 
The Farish family has a long history of public service and staunch support of the Republican Party.  William S. Farish served as United States Ambassador to the Court of St. James under President George W. Bush. His son, Bill, served as a personal aide to President George H.W. Bush. Both father and son are lifelong horsemen who are actively involved in all aspects of Thoroughbred racing and breeding. From their development of Lane’s End Farm into one of the world’s premier breeding operations, to their service with the American Horse Council, the Breeders’ Cup, The Jockey Club, the Kentucky Thoroughbred Association, the National Thoroughbred Racing Association and Thoroughbred Owners & Breeders, their commitment to the horse industry cannot be questioned.  
 
Sen. Williams says that once slots arrive, horse owners and trainers will get the short end of the stick.
If alternative gaming is not growing purse money at racetracks in those states where it is allowed, then why are Kentucky horsemen shipping to Pennsylvania, Indiana, West Virginia and Louisiana, among others?  
 
Total purses in Kentucky have been stagnant or have declined since 2001. In contrast, Thoroughbred and Standardbred purses in Pennsylvania jumped nearly 40 percent from 2007 to 2008, the first full year of gaming operations. Indiana’s Hoosier Park just announced its second purse increase of the current meet. Louisiana racetracks such as Evangeline Downs and Fair Grounds are enjoying resurgence. Gaming revenues are up 5.5 percent at Florida’s Gulfstream Park compared to 2008; while Calder Race Course will open its gaming operation in 2010.
 
The horse industry’s plan to authorize video lottery terminals (VLTs) at Kentucky racetracks was the most comprehensive show of support for the entire horse industry—both racing and non-racing breeds—ever to be introduced in the United States. Though purse supplements for Standardbreds, Quarter Horses and Thoroughbreds are the most visible allocation, revenue would be broadly distributed to enhance many Kentucky equine breeds and related programs.
 
Gaming funds would expand the Kentucky Breeders’ Incentive Program (KBIF), which offers economic incentives to encourage ownership of all Kentucky-bred horses, even non-racing breeds. As an example, since it’s inception in 2005 the KBIF has fueled dramatic growth in Kentucky’s Quarter Horse industry, attracting 600 new Quarter Horse stallions, more than 2,000 mares and an influx of new Quarter Horse farms.
 
Our proposal also dedicates revenue to promote the health and welfare of horses by funding new equine facilities and riding trails; it will enable improvements to the backside and stable areas at racetracks; properly fund the Kentucky Horse Racing Commission and repeal a sales tax on feed and equipment for horses—an exemption already bestowed on other Kentucky livestock.
 
Though he would like to convince you otherwise, Sen. Williams’ plan is not a “horse industry” proposal. Under it, he addresses only purse money; contributing nothing to the KBIF or non-racing breeds. His proposal would redirect to the horse industry $19 million in existing tax revenues that currently go to the General Fund, which is already suffering a shortfall. He would place a 10-cent tax on lottery tickets, so your $1 lottery ticket would cost $1.10. The Kentucky Lottery Commission estimates this tax would result in significant lost lottery sales, which would adversely affect our children since all the funds go to funding the Kentucky Educational Excellence Scholarship (KEES) program.
 
Sen. Williams says slots will not “save” Kentucky’s budget.
Kentucky’s horse industry has never made the claim that expanded gaming would be the silver bullet to Kentucky’s budget shortfall. However, what our proposal would do is generate at least $700 million in new revenue, including more than $200 million in new tax dollars for the state, and be a source of new jobs and new capital construction.
 
Sen. Williams says the horse industry is beset with problems endemic to the industry itself.
The horse industry competes with an explosion of casino gaming nationwide. Today, 36 states in the continental United States permit commercial, Indian and/or racetrack casinos.
 
Kentucky racing is battered by casino gaming forces on two fronts. First, we directly compete with six Indiana riverboats on our border, where $1.44 billion was wagered in 2008. Casinos also line Kentucky’s border with Illinois, Missouri and soon Ohio. These casinos, which include the nation’s largest riverboat, the Hollywood Casino near Lawrenceburg, are situated to take advantage of Kentucky’s major population centers.
 
Even more damaging to our competitiveness, each of the 12 racing states nearest to Kentucky—Arkansas, Illinois, Indiana, West Virginia, Louisiana, Florida, Maryland, Delaware, Pennsylvania, New Jersey, New York and Ohio—are using expanded gaming to strengthen their horse industries.  
 
We don’t view alternative gaming as a long-term fix for Kentucky’s horse industry. Instead it will provide us with a short-term infusion of revenue we can use to spark economic development in our industry. These funds will help us compete, in the immediate future, by allowing us to raise purses and preserve Kentucky’s year-round racing circuit, renovate infrastructure, explore new marketing ventures and employ new technologies in an effort to attract new fans.
 
Alternative gaming at Kentucky’s racetracks will not change the behavior of Kentuckians. They already spend more than $670 million at riverboat casinos in Illinois and Indiana alone.
 
Sen. Williams, however, continues to stir the pot by stating that Kentuckians will have to “gamble” $11 billion to produce the $1 billion net win the horse industry proposal projects. As Sen. Williams knows, this is absolutely not true. He conveniently misuses this figure to confuse and concern. In reality, “churn”—whereby players repeatedly use their winnings to continue play—will account for most of that $11 billion gross wager. We are not asking any Kentuckian to gamble a single dollar that they are not already gambling. We are, however, asking that if they choose to gamble, they do it in Kentucky to help our own people. We don’t want a government subsidy!  What we want is a level playing field. If we get this we will out-work and out-produce our competition and remain the “Horse Capital of the World”!

I knew about Calvin Borel the rider but not Calvin Borel the writer. Borel, the winner of this year’s Kentucky Derby aboard Mine That Bird and the Kentucky Oaks and Preakness aboard the filly Rachel Alexandra, has come out in support of video lottery terminal legislation (VLTs, or slots) that is being considered at the special session of the Kentucky legislature called by Gov. Steve Beshear. The special session begins next Monday.

The following op-ed, signed by Borel, is being distributed by the public relations firm hired by the Kentucky Equine Education Project (KEEP). – Ray Paulick

By Ray Paulick

There may not have been anyone at Wednesday’s press conference at Churchill Downs who understands horse racing’s need for slot machines or alternative forms of gambling better than Chip Woolley, the trainer of Kentucky Derby winner Mine That Bird.

Copyright © 2009, The Paulick Report

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