Posts Tagged ‘kentucky equine education project’
Monday, January 11th, 2010
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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Tags: bluegrass state, damon thayer, david williams, Jack Conway, Jimmy Higdon, Jodie Hayden, jody richards, keep, kentucky equine education project, Kentucky House, kentucky senate, Reagan, Republican Party of Kentucky, steve beshear, VLT
Posted in Kentucky, Slot machines | 19 Comments »
Tuesday, December 22nd, 2009
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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Tags: Breeders' Cup, constitutional amendment, damon thayer, david williams, Equine Forum, harry reid, Horse Racing Radio Network, Indiana, jerry carroll, Jimmy Higdon, Jodie Haydon, keep, Keep Our Jobs in Kentucky, Kentucky, kentucky equine education project, Mike Penna, mitch mcconnell, nancy pelosi, Paulick Report, Ray Paulick, steve beshear, turfway park, U. S. Senate
Posted in Kentucky, Slot machines | 18 Comments »
Monday, December 14th, 2009
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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Tags: brereton jones, keep, Kentucky, kentucky equine education project, Paulick Report, Slot machines, VLT
Posted in Kentucky, Slot machines | 4 Comments »
Monday, June 29th, 2009
By Ray Paulick
Kentucky’s special legislative session may seem like ancient history now, but I’m going back to revisit a misleading article published in the Lexington Herald-Leader on June 14, one day before members of the state House and Senate met in the capital in Frankfort.
Under the headline, “100,000 Horse Industry Workers?” the article written by John Cheves called into question the number of jobs attributed to Kentucky’s horse industry. It accompanied another piece by Cheves, entitled “Horse Industry Has Problems,” that suggested things in Kentucky aren’t really as bad as people in the horse industry are making them out to be.
The intent of the two articles, I assume, was to convince state legislators, who may have been on the fence about whether or not to vote “yes” on racetrack video lottery terminals (VLTs) or slot machines during the special session, that Kentucky’s horse industry a) isn’t really as big as people have been saying it is and b) no other state is ever going to challenge Kentucky as the national leader in foal production, so its tracks don’t need to offer the same expanded wagering menu that so many other states have.
The article about the number of people who are employed as a result of Kentucky’s horse industry was borderline outrageous. The author seemed to dismiss the 2005 economic impact study commissioned by the American Horse Council and its conclusions that there are approximately 96,000 direct and indirect jobs in the Bluegrass State resulting from the horse industry (all breeds and disciplines). Kentucky was one of 15 states for which detailed information was provided as part of a national study conducted by Deloitte Consulting. The study concluded there were 51,900 people directly employed in the horse industry in Kentucky. It also said that as a result of the horse industry’s spending power, there were another 44,100 “induced” or indirect jobs. Those jobs are not in the horse industry (they represent all kinds of jobs that horse industry people are responsible for supporting), but they wouldn’t exist if the horse industry wasn’t here. It’s a safe bet that if we lose some of those 51,900 direct jobs, the “induced” employment will fall as well.
The writer seemed to be saying the number was somehow “fudged,” that smoke and mirrors were used by Deloitte to get to 96,000 jobs. Jay Hickey, the president of the American Horse Council, said to his knowledge every industry that conducts an economic impact study does exactly the same thing. “I can tell you, they didn’t come up with this methodology just for the horse industry,” he said.
The article says the Kentucky Equine Education Project uses the 100,000 employment figure in its advertisements and that it is somehow misleading. But if the writer had gone to KEEP’s website ( www.horseswork.com), he would have seen a fact sheet about the industry that claims between 80,000 and 100,000 direct and indirect jobs. If anything was misleading, it was the conclusions of the Herald-Leader article.
From a monetary standpoint, the direct economic impact of the horse industry in Kentucky is $2.3 billion, according to the same study. The total impact on the state (direct and indirect) is $3.5 billion.
Incidentally, Deloitte concluded that the total number of direct jobs in the horse industry across the United States is 453,612, and there are nearly one million “induced” jobs, bringing the total direct and indirect employment to 1,411,333. Nationally, the direct economic impact is $39 billion, and it increases to a total of $102 billion when the indirect impact is factored in.
But let’s go back to Kentucky for a minute and the Herald-Leader story, which concluded there are only 51,000 horse industry jobs in the state—not 96,000 or 100,000.
That’s still an awful lot of jobs. How many other industries in Kentucky employ that many people? One thing’s for certain: the number of jobs in the horse industry will be lower the next time the legislature meets. Horses and the jobs that go with them are leaving the state to race where purses are higher and breeders’ incentives more lucrative.
That’s no myth.
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Tags: deloitte consulting, economic impact study, horse industry economic impact, horse industry employment, jay hickey, kentucky equine education project, kentucky horse industry employment, kentucky's horse industry economic impact, lexington herald-leader, Paulick Report, Ray Paulick
Posted in Kentucky, Thoroughbred Business | 40 Comments »
Wednesday, June 24th, 2009
By Ray Paulick
Brereton Jones, the former governor of Kentucky and the chairman of the Kentucky Equine Education Project, pulled no punches during a horse industry rally at Keeneland Wednesday night when talking about what derailed House Bill 2, legislation that would have permitted video lottery terminals at state racetracks and enhanced purses. In an obvious reference to Senate President David “Blackjack” Williams, the "anti-gambling" Republican from Burkesville who likes to visit riverboat casinos in neighboring states, Jones talked about how a “third-world dictatorship” killed the legislation in a Senate committee controlled by Williams’ followers. “The only way to get rid of a dictatorship is through a revolution,” Jones said, “and the revolution starts here tonight. We are going to make this happen.”
 That brought the crowd of over 1,000 to their feet in one of many standing ovations during a rally that in some ways demonstrated the resilience, hope and perseverance of horse people. Individuals from virtually all segments of the horse industry attended.
Nick Nicholson, president of Keeneland, served as the emcee of the rally, which was scheduled less than 24 hours earlier in the wake of the defeat of the VLT legislation in the state capital of Frankfort. It began shortly after 7 p.m., when Gov. Steve Beshear and First Lady Jane Beshear arrived to the first standing ovation of the night.
“I know that we’re disappointed in the final result,” Nicholson said about the legislation that was approved by the House before being killed in the Senate Appropriations and Revenue Committee. “We’re angry, scared, and more determined than ever. This industry has more solid friends in Frankfort now than it did a month ago. Let me be real clear, no question about it, no doubt. This fight ain’t over yet. We as an industry are more unified than we have ever been.”
Nicholson introduced Kentucky legislators on hand who were among the horse industry’s friends and supported the VLT bill. Present were House members Rocky Adkins (D-Boyd, Elliott, Lawrence, Rowan Counties); Linda Belcher (D-Bullitt); Leslie Combs (D-Harlan, Letcher, Pike); Robert Damron (D-Fayette, Jessamine); Kelly Flood (D-Fayette); Reginald Meeks (D-Jefferson); David Osborne (R-Jefferson, Oldham); Sannie Overly (D-Bath, Bourbon, Fayette, Nicholas); Ruth Ann Palumbo (D-Fayette); John Will Stacy (D-Menifee, Morgan Rowan and Wolfe); John Tilley (D-Christian, Trigg); and Susan Westrom (D-Fayette).
Supporters on hand from the Kentucky Senate were: Walter Blevins Jr. (D-Boyd, Elliot, Fleming, Lawrence, Rowan); Tom Buford (R-Boyle, Fayette, Garrard, Jessamine); Perry Clark (D-Jefferson); Denise Harper Angel (D-Jefferson), Gerald Neal (D-Jefferson); Joey Pendleton (D-Christian, Logan, Todd); Kathy Stein (D-Fayette); Johnny Ray Turner (D- Breathitt, Floyd, Knott, Letcher); and Ed Worley (D-Lincoln, Madison, Rockcastle).
Nicholson also thanked House Speaker Greg Stumbo and Speaker Pro Tem Larry Clark, co-sponsors of the bill. Neither was able to attend the rally.
 One local politician who wasn’t mentioned by name but was referred to several times as the “Senator from Scott” (county) was Republican Damon Thayer, a horse industry consultant and former Breeders’ Cup and Turfway Park executive who has been the point person for the horse industry on legislation in Frankfort but has been silent on the issue of VLTs or slots. Thayer is not a member of the A&R Committee that killed the VLT bill, but today on the Senate floor he reportedly said Beshear and anyone else who wants to support the horse industry should get behind an alternate bill proposed by Williams that would divert funds toward purses through a tax on the state lottery, out of state wagers on Kentucky races, and charitable gaming. Those comments angered Senate minority leader Ed Worley, who gave an impassioned speech on the floor of the Senate criticizing Thayer and others who said Beshear doesn’t support the horse industry. In that speech, which was shown on video at the horse industry rally, Worley challenged those who criticized Beshear to come to Keeneland Wednesday night and hear first-hand from members of the horse industry.
Worley was then introduced at the rally and began his brief talk by asking, “Would the senator from Scott please stand up?” a comment that brought derisive laughter from the standing room only audience. Thayer apparently was not present.
“You do not deserve people who represent districts with horse tracks and horse farms, if they vote against the horse industry. You need to remember them on election day,” Worley said.
Patrick Neely, the executive director of KEEP, was even more blunt in his remarks to the crowd. “Elections matter,” Neely said. “We cannot forget that Alice Forgy Kerr–whose district is home to so many horse farms and to Keeneland—voted no. Only Tom Buford (the lone Republican supporter on the A&R Committee) had the courage to vote yes,” a comment that brought the crowd to its feet with thunderous applause. Another Republican supporter, Rep. David Osborne, was cited as evidence that the VLT legislation was not a partisan bill.
Beshear said he felt if the VLT bill had gotten a chance for an up-or-down vote on the Senate floor, it had a good chance to be approved. “Some of these senators are now looking for cover,” Beshear said. “They’ve thrown out some quick proposals. The senator from Scott (Thayer) said we could even take the money out of the general fund. My friends, they are looking for cover, and I’m telling you: Don’t let ‘em find that cover.”
Now that Ohio appears to have racetrack slots on a fast track to passage, Beshear said Kentuckians will be “educating Ohio’s kids, building Ohio’s roads,” by gambling at Ohio casinos, just as they’ve been doing at Indiana casino boats. “It’s time we kept that money at home to help our people,” he said.
“Tonight is not an ending,” Beshear added. “It’s a beginning of a campaign that’s not going to quit until we have done our job to save our beloved horse industry.”
It’s time to do one of two things, Beshear said. “Change some of the state senators’ minds, or we’ve got to change some of the state senators. Over the next 18 months, let’s get this done.”
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Tags: A&R committee, Appropriations and Revenue Committee, brereton jones, damon thayer, david osborne, david williams, denise harper angel, ed worley, flt legislation, gerald neal, greg stumbo, house bill 2, jane beshear, joey pendleton, john tilley, john will stacy, johnny ray turner, kathy stein, Keeneland, kelly flood, kentucky equine education project, larry clark, leslie combs, linda belcher, nick nicholson, patrick neely, Paulick Report, perry clark, racinos, Ray Paulick, reginald meeks, robert damron, rocky adkins, ruth ann palumbo, sannie overly, steve beshear, susan westrom, tom burford, walter blevins jr.
Posted in Keeneland, Kentucky, Slot machines | 23 Comments »
Monday, June 22nd, 2009
By Ray Paulick
Monday was a sad day in Kentucky for the Thoroughbred horse industry. It wasn’t a great day for democracy, either.
A Senate committee stacked with Republican followers of Senate President David “Blackjack” Williams voted 10-5 not to allow the full Senate to consider VLT legislation designed to close Kentucky’s budget deficit, improve education, and allow the horse industry to compete with other states in the region that have slot machines. The House passed the bill last week under the direction of Speaker Greg Stumbo, but the Senate committee vote went along party lines, with nine of 10 Republicans voting to kill the bill. Four of five Democrats supported it, with one abstaning. (Click here for a live blog including the votes by each Senator.)
Williams, who likes to play blackjack at Indiana and Mississippi riverboats but for some reason opposes Kentuckians gambling in their own state, brought a smokescreen strategy to the special session called by ineffectual Democratic Gov. Steve Beshear. That strategy included a tax-and-spend proposal passed by the Republican-controlled Senate but which never had a chance of getting approved by the Democratic-controlled House. The smokescreen strategy allowed Williams’ Republican yes men/women to say they tried to help the horse industry by voting for the Williams proposal. It would have raised taxes on the lottery, charitable gambling and out of state bets on Kentucky races and provide money for purses and breeders’ incentives. (The out-of-state betting tax increase was a preposterous idea, since out of state tracks would have simply dropped the Kentucky signal on tracks like Turfway and Ellis Park and done more damage than good.)
Some of the Republicans who voted no on the issue probably were representing the strong moral beliefs of their constituents. But others who voted no, specifically the Lexington/Fayette County Senator, Alice Forgy Kerr, were sending a clear message to people in the horse industry that they do not matter.
Kerr is said to be very chummy with Mira Ball, who with homebuilding husband Don Ball is one of the largest contributors to Republican campaign coffers. The widespread belief of many in the horse industry is that the Balls and their Ball Homes want to see the horse industry fail, and the price of Central Kentucky acreage drop so they can build more tract housing. Don Ball and David Williams are closely allied in their opposition to gambling…at least by other people.
The Kentucky Equine Education Project or affiliated political fund-raising groups must now turn their attention to people like Kerr and other elected officials in Kentucky who can be defeated in future elections by well-funded opponents who truly want to help the horse industry.
If Williams was the bully of this aborted effort by the horse industry to level the playing field with other states, Gov. Steve Beshear was the 98-pound weakling. He blew his opportunity in January 2008 to push the same legislation after winning election in a landslide over Republican Ernie Fletcher. And when he called the special session and put the VLT legislation on the agenda, Beshear failed to do what effective politicians do instinctively: call their friends and make sure you’ve got their support, and call your opponents and tell them in no uncertain terms why they need to be with you.
Another politician missing in action on this bill was Sen. Damon Thayer, a Republican who is a consultant in the Thoroughbred industry and is a former executive at Turfway Park and the Breeders’ Cup. Thayer, who like any member of the state GOP who wants committee appointments has to fall in line with Williams, was silent on the slots issue. He isn’t a member of the Appropriations and Revenue Committee, but he could have influenced a more positive outcome and didn’t. Thayer never came out with a position on the bill, to my knowledge.
What happens next? There is only a glimmer of hope that some parliamentary procedures can bring the bill to a vote in the full Senate during this special session. Beyond that, we are looking at the January 2010 legislative session.
The problem is that, by then, Ellis Park will have had a disastrous summer meeting, and Turfway Park will be in a much less competitive position than they are now. The prospects of Kentucky losing its year-round circuit are real. The loss of breeding stock to other states or Canadian provinces is real. The summer and fall yearling sales will be down anywhere from 25%-40%, and the breeding stock will match that or worse.
The downward spiral of Kentucky’s horse business, as Keeneland’s Nick Nicholson pointed out in the Senate hearing, has come faster and harder than anyone could have predicted. And I hate to say this, but it’s not going to get any better without real legislative action.
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Tags: alice forgy kerr, ball homes, damon thayer, david williams, Don Ball, greg stumbo, house bill 2, kentucky equine education project, kentucky slots, mira ball, nick nicholson, Paulick Report, racinos, Ray Paulick, steve beshear
Posted in Kentucky, Slot machines | 58 Comments »
Thursday, June 11th, 2009
There is no question Kentucky’s horse industry is in crisis, and the special legislative session called by Gov. Steve Beshear and beginning Monday, June 15, may be the most critical five days ever seen by the Bluegrass State’s horse farmers and all others whose businesses and the livelihoods for their families are dependent on a healthy horse industry. If a proposal to allow Kentucky racetracks to level the playing field with other racing states by installing Video Lottery Terminals is not passed, there could be dire consequences for businesses and families across the state in the very near future.
Many legislators from across the state may not fully understand the impact the horse industry has on Kentucky’s economy. The round numbers - more than 100,000 jobs and billions of dollars in direct economic impact - only tell part of the story. Next Wednesday’s horse industry rally in the state capital of Frankfort organized by the Kentucky Equine Education Project will be an important show of support for the legislation, and I hope everyone will participate in that. But there is more that you can do.
If you’re a Kentuckian or operate a horse-related business in the state, please take a few minutes to fill out a brief fact sheet about your company, and fax or mail it to Gov. Beshear, House Speaker Greg Stumbo, Senate President David Williams and your local elected officials. They will appreciate and benefit from knowing about that business and the impact it has on Kentucky’s economy.(Click here if you need help finding the state representative or senator in your district).
You can access the fact sheet by clicking here. It is suggested you print the sheet out on your company’s letterhead before filling it out. .
I encourage all of Kentucky’s horse-related businesses to participate: stallion stations, boarding farms, training centers, racetracks, tack shops and supply stores, veterinarians and equine hospitals,bloodstock agencies, auction consignors and sale companies, insurance agents, publications, advertising agencies, anyone whose business involves horses. To help get this message out even further, please send either the link to this story or a copy of the PDF fact sheet to other horse-related companies you do business with in Kentucky.
Contact information:
Gov Steve Beshear
700 Capitol Avenue, Suite 100
Frankfort, KY 40601
Tel: 502.564.2611
Fax: 502.564.2517
Sen. President David Williams
702 Capitol Avenue, Annex Room 236
Frankfort, KY 40601
Tel: 502.564.3120
Fax: 502.564.0456
House Speaker Greg Stumbo
702 Capitol Avenue, Annex Room 303
Frankfort, KY 40601
Tel: 502.564.2363
Fax: 502.564.7178
Tags: david williams, greg stumbo, horse industry economic impact, keep, kentucky equine education project, kentucky horse industry, kentucky horse industry crisis, Paulick Report, racinos, Ray Paulick, slots, steve beshear, thoroughbred racing and breeding, vlt legislation
Posted in Kentucky, Slot machines, Thoroughbred Business | 16 Comments »
Monday, June 8th, 2009
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
Ever since I was a young boy, all I have ever wanted to do is ride race horses. I grew up in Louisiana, but 12 years ago I moved to Kentucky to be in the middle of the horse racing and breeding capital of the world. Since then, I have seen success I could have never dreamed of—riding horses like Street Sense, Mine That Bird and Rachel Alexandra and winning the Kentucky Oaks, the Kentucky Derby and the Preakness.
I get to work at Churchill Downs at 6 a.m. to work horses and help my older brother, Cecil, who is a trainer. I love being around the horses, and I love being around the hard-working people who make up this industry. While the public may see me ride in the afternoon for a few minutes at a time, I know that a great deal of my success comes from the efforts of the people on the backside of the track who spend many hours each day, seven days a week with the horses.
There are reasons that Kentucky has been recognized as number one. We have strong race tracks and internationally known races which provide a year round circuit. We have the finest breeding farms and horses in the world. And, we have outstanding horsemen and women who take care of the horses. No other state has this foundation, but Kentucky is at a crossroads. Our position as the best is slipping. Every other state in the region now helps fund their purses and breeders’ awards with money from alternative forms of gaming.
Let us compete. The Governor has called a special session to address VLT’s at the state’s tracks. If it doesn’t pass soon, then we will fall way behind, and those hard-working people all over Kentucky who take care of the horses will have to relocate to other states.
Sincerely,
Calvin Borel
Tags: Calvin Borel, churchill downs, horse racing and breeding, keep, kentucky derby, kentucky equine education project, kentucky horse industry, kentucky oaks, mine that bird, Paulick Report, Rachel Alexandra, Ray Paulick, slots at kentucky racetracks, steve beshear, vlt legislation, vlts
Posted in Kentucky, Slot machines | 10 Comments »
Wednesday, May 20th, 2009
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.
Woolley didn’t hesitate when I asked him how slot machines have turned around racing and breeding  in his native New Mexico. “I wouldn’t be here today without slots in New Mexico,” he said. “We were on the edge of extinction when slots were brought in to the racetracks.”
It was the slots-aided purses in New Mexico that gave Woolley’s friend, Mark Allen, and Dr. Leonard Blach, the confidence to spend $400,000 on the Birdstone gelding, who had been racing in Canada after being purchased for just $9,500 at the Fasig-Tipton October yearling sale. Allen and Blach thought Mine That Bird might be good enough to win the Sunland Derby, a $900,000 race at Sunland Park fueled by slot machine revenue.
The press conference, called by the Kentucky Equine Education Project, demonstrated the difficult plight of Kentucky racing today, relative to states that have added slot machines or casinos to their wagering menus. Purses in those states are superior to what is being offered at Kentucky tracks, which are losing racehorses, breeding stock and owners to other states.
Bob Elliston, head of Turfway Park, told the gathering that the Northern Kentucky track will have to “sit down with our horsemen and discuss major purse cuts” for its September meeting and the possibility of eliminating racing dates. Ron Geary, owner of Ellis Park in Western Kentucky, has already asked for a reduced racing schedule in 2009 and said this will be the track’s final season if the Kentucky legislature doesn’t do something to help the horse industry. Ellis Park is fighting to keep horses from going to Indiana Downs, which added slots just one year ago. “In their first year, they had $360 million in revenue from slots,” Geary said. “Ellis Park had $11 million for the same period from live racing and simulcasting.” If Ellis kept its original dates this year, Geary said, purses would total just $70,000 per day, compared with $155,000-$200,000 at Indiana Downs and $225,000 at Hoosier Park.
Other states are “outmaneuvering us legislatively,” Geary added.
Corey Johnsen, co-owner of Kentucky Downs, the all-turf racing track in southern Kentucky that will only race four days this year, said if the legislature leveled the playing field by permitting slot machines at the state’s tracks, “It will allow us to compete. We can be the best in the world.”
 Bob Evans, CEO of Churchill Downs, which recently received permission from the Kentucky Horse Racing Commission to eliminate live racing on Wednesdays because of a shortage of horses, warned that the situation will get worse if something isn’t done. Evans said more Florida tracks will add slot machines, Maryland will be online soon with slots parlors, along with a huge slots operation at Aqueduct. “If we don’t do something in Kentucky – look out,” Evans said. “The proverbial barn door to the Kentucky horse industry will have been left open.”
Evans said legislators don’t need to reinvent the wheel, that they only need to copy from states where slots have helped the horse industry and government.”We are not asking for a government bailout,” he said. “All we want to do is invest $1 billion of our shareholders money and build gaming operations that compete successfully with other states.” The horse industry, he said, “is out of other viable options.”
Nick Nicholson of Keeneland said the press conference was called to crystallize this issue for the people of Kentucky and their legislators. “This has been talked about for some time. This proposal is an idea whose time has come.” The industry, he added, is as unified on the issue as it’s ever been.
“If no action takes place and we lose our racing circuit and the prominence of our breeding industry,” Nicholson said, “we don’t want anyone in this state to be surprised.”
Rick Hiles, president of the Kentucky HBPA, said that if two or three of Kentucky’s smaller tracks are forced to close, “it’s going to really hurt Churchill Downs.” The breeding industry also is going to be hurt.”
Following the press conference, Dallas Stewart and Bernie Flint, a pair of trainers from Louisiana where slots revenue have helped purses, spoke with Evans about the need for some help from the state. “It’s a shame to see a place like this cut back,” Flint said, as he looked up at the Twin Spires made so famous on the first Saturday in May by the Kentucky Derby. “ Flint blamed Kentucky Senate president David Williams for blocking the legislation and said he found it ironic that Williams is known to frequent out of state casinos, where he is said to be an avid blackjack player. “For him to put his foot in the door and block this is wrong,” Flint said. “He goes and plays blackjack in other states, yet says Kentucky can’t have gambling.”
Stewart spoke about how slots have turned around business at Fair Grounds in New Orleans. “It’s packed,” he said, “and it’s really helped racing. If these legislators knew how much the horsemen spend in a city like Louisville, with apartments, restaurants and everything else, they’d be crazy not to do something to keep us here.”
Gov. Steve Beshear, who was elected largely because of his position to bring additional gambling to Kentucky and his support of the horse industry, has talked about calling a special session of the Kentucky legislature to deal with the state’s budget crisis. House Bill 158 was passed by the Licensing and Occupations Committee but did not go to the full House for a vote during the Kentucky legislature’s 2009 regular session.
Copyright © 2009, The Paulick Report
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Tags: bernie flint, bob elliston, bob evans, chip woolley, churchill downs, corey johnsen, dallas stewart, david williams, ellis park, horse racing purses, Keeneland, keep, kentucky downs, kentucky equine education project, mine that bird, new mexico racetrack, nick nicholson, racinos, ron geary, senate president david williams, Slot machines, turfway park
Posted in Kentucky, Slot machines | 15 Comments »
Thursday, January 29th, 2009
By Ray Paulick
Random notes while waiting for the ice to melt …
The devastating snow and ice storm that hit Kentucky earlier this week has created serious economic hardships on Thoroughbred farms, many of which are without electricity and have suffered major damage, just as the foaling season is hitting full swing and the breeding season about to begin. Let’s hope organizations like the American Horse Council, the NTRA, Thoroughbred Owners and Breeders Association, the Kentucky Thoroughbred Association and the Kentucky Equine Education Project are in contact with government officials to seek relief, now that Gov. Steve Beshear has asked the Obama administration to declare a federal emergency.
Horse farms are already under extreme economic pressure because of the plunge in bloodstock prices, and this latest problem is only making things worse for them. It’s at times like these that these alphabet soup organizations can actually do some good.
DID FRANK STRONACH’S ONE-VOTE MARGIN over IEAH Stables in the Eclipse Awards outstanding owner category come by virtue of several racing secretaries who work for him? I have a great deal of respect for Stronach’s racing and breeding operation, which has produced solid numbers for many years now, but I just can’t fathom how 2008 was an Eclipse Award-winning year for him. Ahmed Zayat’s stable earned slightly more money but only ranked sixth in the number of first-place votes. IEAH had a far superior year in terms of Grade 1 winners. George Strawbridge’s Augustin Stable had a better year when the number of starters was taken into consideration, as did the racing stables associated with Sheikh Mohammed. Here is the year-end ownership standings by money.
Apart from the National Turf Writers Association, which has historically published how its members vote, there is no disclosure from Daily Racing Form or the National Thoroughbred Racing Association about who votes – never mind who each individual votes for. But the NTRA should insist that racing secretaries or any other voters who work for racetracks owned by Stronach’s Magna Entertainment not be allowed to vote in categories where there is a potential conflict of interest. That would include the leading owner and leading breeder categories. The awards are too important to permit any conflicts of interest or suspicions of impropriety.
In the owner and breeder categories (the latter of which was for years determined by a committee vote), there seems to be little imagination or thought put in by voters, who more often than not look at which owner and breeder is at the top of the money list that is supplied with the ballot. If the people who vote for Academy Awards were that lazy, then “Paul Blart: Mall Cop” would win the Oscar for best picture this year.
Opportunity (the number of starters) should play a role in voting for outstanding achievement by an owner or breeder. Twice in the last eight years, a breeder who produced two individual champions in the same year from a small band of broodmares (Virginia Kraft Payson, with Farda Amiga and Vindication in 2002, and Aaron and Marie Jones, with Speightstown and Ashado in 2004) did not even get enough votes to be among the three finalists! That’s insulting to the thousands of Thoroughbred breeders who either can’t afford to or don’t choose to maintain massive numbers of broodmares. (Click here to see what I wrote about this issue a few years ago at Bloodhorse.)
The NTRA needs to address this, either by eliminating the vote and simply giving the awards for leading owner and breeder to whoever wins the most money, or by changing the system of selecting the outstanding individuals in these two categories. I don’t think enough voters understand the importance of this category or what “outstanding” means when it comes to owning or breeding Thoroughbreds.
SPEAKING OF THE NTRA, what is its future? The organization is a shell of its former self, when it had widespread industry support and a mission to improve the economics of racing and breeding through increased pari-mutuel handle, marketing and greater exposure on television. Following its split from the Breeders’ Cup, the NTRA has lost much of its economic clout and influence, as it no longer has the annual championships to promote to the general public or to race sponsors that were tied in to group purchasing (i.e., John Deere, NetJets, Dodge), which only a few years ago produced upwards of $100 million a year in sales. Following the NTRA-Breeders’ Cup “divorce,” group purchasing through NTRA Advantage has dropped significantly.
Today, the NTRA seems to be playing more defense than offense, reacting to crises (i.e., the death of Eight Belles in the Kentucky Derby, Congressional inquiries, totalizator problems) but not really having the resources to go on the offensive in any areas, including marketing and promotion.
Complicating matters (and this isn’t new) is the ongoing struggle to maintain membership in the NTRA. Churchill Downs Inc., which is tabbed to pay approximately $400,000 in dues for its various tracks in 2009, hasn’t recommitted to membership. A source says Churchill might considering paying $200,000 in dues. An NTRA official told the Paulick Report he hopes Churchill executives see value in the NTRA’s legislative activities, the “Racing to the Kentucky Derby” television series on ESPN, NTRA Advantage purchasing, the National Handicapping Championship, and the Safety and Integrity Alliance. The interesting thing about the latter, I’ve been told by sources, is that Churchill Downs CEO Bob Evans is the one who insisted the NTRA do something about the safety issues that led to the creation of the Safety and Integrity Alliance.
Magna apparently hasn’t committed to renewing its NTRA membership, either. If the NTRA loses the two largest track ownership companies, it will be further weakened, perhaps terminally.
CORPORATE SPONSORSHIPS ARE A CHALLENGE in the current economic climate, whether it’s the PGA Tour, NASCAR or horse racing. But it was, nevertheless, a surprise to see Bessemer Trust drop its sponsorship with the Breeders’ Cup. I would think the wealth management firm formerly chaired by Ogden Mills (Dinny) Phipps and now run by his cousin, Stuart Janney Jr., is encountering the same economic challenges that many financial institutions are (though Bessemer’s investment strategy is believed to be conservative).
Janney responded to an email with the following comments: “I would say our reasons for dropping out are as follows. First, we have been a sponsor for some time, which means many of our clients have been entertained at a Breeders’ Cup event and having them back again is possibly less appealing than providing a different venue. Second, the two-day format works better for others than it does for us. Third, we have never been able to really derive full value from the TV ads as our target audience is very narrowly focused. Fourth, as we look at other sponsorships and ways to thank our clients or meet prospects, it helps in tighter times to have this money available. We believe our involvement with the Breeders’ Cup has been beneficial to Bessemer and the staff at the Breeders’ Cup has been a pleasure to work with.”
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Tags: aaron and marie jones, adena springs, ahmed zayat, American Horse Council, bessemer trust, bob evans, churchill downs, daily racing form, Dinny Phipps, eclipse awards, Frank Stronach, george strawbridge, ice storm, ice storm of 2009, IEAH, kentucky derby, kentucky equine education project, Magna Entertainment, National Thoroughbred Racing Association, national turf writers association, NTRA, ntwa, Ogden Mills Phipps, Paulick Report, Ray Paulick, sheikh mohammed, stuart janney, Thoroughbred Owners and Breeders Association, TOBA, virginia kraft payson
Posted in Breeders' Cup, Horse Racing, Industry Organizations, National Thoroughbred Racing Association, People, Sponsorships, TOBA, Thoroughbred Business, eclipse awards | 18 Comments »
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