Posts Tagged ‘U. S. Pony Club’

By Ray Paulick
A summit meeting between the leader of the Kentucky state senate’s majority Republican Party and a group of prominent Thoroughbred owners and breeders began shortly after 3:30 p.m. in the offices of the U.S. Pony Club at the Kentucky Horse Park near Lexington on Tuesday afternoon. The expected subject matter was the future of Kentucky’s beleaguered signature industry and the gulf that exists between horsemen and Sen. President David Williams on the issue of VLTs or expanded gambling at state racetracks.

Williams has repeatedly used his power and influence to block slots or VLT legislation that most in the horse industry see as necessary in the wake of competition from bordering states—this despite a reported penchant for gambling at out of state casinos and riverboats that has earned Williams the nickname of “Blackjack” here at the Paulick Report (more about that later). Williams has come under fire recently from fellow Republicans in the horse community, most notably Bill Farish, general manager of Lane’s End Farm in Versailles and son of William S Farish, a close friend to former Presidents George H.W. Bush and his son, George W. Bush.

Williams met with the board of directors of the influential Kentucky Thoroughbred Association and Kentucky Thoroughbred Owners and Breeders, along with representatives of the Kentucky Horsemen’s Benevolent and Protective Association and the Kentucky Thoroughbred Farm Managers Club. David Switzer, executive director of the KTA/KTOB, said the decision was made to keep it a closed meeting from the press and others in order to ensure what he called “free speech.” 

Also attending the meeting was Scott County Republican Sen. Damon Thayer, a Thoroughbred industry consultant and former executive at Breeders’ Cup and Turfway Park whose silence and lack of support for VLT legislation during a special session of the legislature in June  was widely criticized by individuals in the horse industry. Ed Worley (D-Richmond), the minority leader in Kentucky’s Senate, also was on hand.

As one reader pointed out in a comment, it’s curious why the Kentucky Equine Education Project was not invited to the meeting, which the KTA’s Switzer said Williams had requested two months ago.

WILLIAMS, THAYER TO INTRODUCE CONSTITUTIONAL AMENDMENTS
Following the meeting that lasted nearly two hours the dynamic duo of Williams and Thayer  (pictured, left) emerged first, telling reporters about their plans to introduce two constitutional amendments involving gambling in the 2010 legislative session. Williams spoke first, saying he was going to introduce a bill calling for a constitutional amendment to ban the expansion of gambling in Kentucky without what he called "the vote of the people". 

Thayer then said he will sponsor legislation giving voters a chance to decide whether to permit VLTs in seven counties where racetracks are located. If passed, both amendments would go before voters in November 2010. If approved by a majority of Kentuckians, Thayer’s proposed constitutional amendment would then require enabling legislation and a local option vote in all seven counties, followed by a licensing approval process. He did not give a concrete date for when that entire process, which would include a bidding process and licensing of VLT facilities, could be completed.

Click here to see an outline of Thayer’s proposed constitutional amendment. 

If the measure passed and VLT facilities were fully operational (they aren’t necessarily tied to racetracks in the seven counties, based on the proposal), Thayer said Kentucky owners and breeders would get $100 million annually or 25% of net revenue , whichever is higher.

Williams said he would personally oppose the constitutional amendment permitting VLTs but would not attempt to stop it from going through the Senate chamber. Both constitutional amendments would require super majority votes in the Senate (23 of 38 votes) and House (60 of 100 votes). Currently, the House is controlled by Democrats, while Williams and his fellow Republicans hold a 20-17 edge over Democrats in the Senate, with one member independent.

Legislation permitting VLTs passed the House during the special session of the legislature in June, but it was killed in a Republican controlled Senate committee, preventing the measure from getting a full vote on the Senate floor. Since the bill was killed, the Republicans lost one seat in a special election and could conceivably lose another if Republican Sen. Dan Kelly is offered and accepts a judgeship from Democratic Gov. Steve Beshear. Republicans currently control the Senate by a 20-17 edge over Democrats, with one independent.

Williams said if the VLT legislation had been passed by the Senate, "we’d be tied up in litigation" over the constitutionality of the bill. Besides, Williams said, Gov. Beshear ran on a platform that would permit Kentuckians to vote on whether to allow racetracks to offer expanded gaming. "The governor has some opportunity to show some leadership on this situation," Williams said. "It was his campaign promise that he wanted the people to decide. These two amendments, if the governor will support them, will allow the people to decide. In the intervening time, we can try to do some things to supplement the (horse racing) purses."

According to the Lexington Herald-Leader, Beshear issued a statement calling the proposed constitutional amendments "cynical" and "political."

When asked about the reaction of horse industry representatives to the proposals, Williams said the discussions were "spirited". Thayer added, "They were courteous."

Williams seemed defensive when asked by one reporter if he would "allow" Thayer’s amendment to be voted upon by the full Senate. "What do you mean ‘allow’?" he responded. He then said it was wrong to blame the failure of the VLT bill on one person (presumably Williams was referring to himself) and said the measure passed the House by a "skinny majority." He chided VLT supporters for calling the opponents of the measure "disingenuous, dishonest and corrupt." 

Thayer said he has not heard much criticism over his lack of support for the VLT bill from his constituents in Scott County but admitted he has been criticized by members of the horse industry. He said he has been consistent in his support of a constitional amendment but said legislators have been too busy on other issues to introduce a bill calling for a constitutional amendment over the last 10 years.

"This is a horse industry protection bill," insisted Thayer. "We will have the most desirable year-round racing circuit in the country."
 
DEMOCRATIC LEADERSHIP, HORSE INDUSTRY OPPOSES
Democratic Senate Floor Leader Ed Worley (pictured, left), who also attended the meeting, dismissed chances of members of his party supporting the legislation. "It ain’t gonna happen," Worley said, adding that Thayer’s constitutional amendment would be "dead on arrival." He was highly critical of Thayer for not contacting him "as a courtesy" to outline his plans for the legislation before going public with it. Worley said he had canvassed all but one member of the Democratic caucus  and said none of them would support the constitutional amendments.

"What this is about is politics," Worley said. "This buys (the Republicans) time and divides the industry, and that’s what it is intended to do"–calling it a "wedge issue." Meanwhile, "the multi-billion-dollar industry" is suffering, Worley said. "The rank and file of the industry aren’t sheikhs. They don’t all have million-dollar horses."

Bill Farish said the lengthy time line for the constitutional amendment, statewide referendum, enabling legislation, local option votes and licensing process was not acceptable to a horse industry that needs more immediate help. A statewide referendum and local-option elections "give out-of-state casinos two shots to oppose" the measure, he added, saying they would spend millions in advertising in an effort to sway public opinion against VLTs at racetracks.

"We have our position and he (Williams) has his position," Farish said, though he added the horse industry will continue to seek common ground with legislators. In the meantime, he said, the industry will work to elect senators and House members who understand and support the horse industry’s position.  "As an industry we are united." 

It was startling to hear Farish, whose family has such longstanding, close ties to Republican Party politics, using the word "we" while discussing the horse industry’s support of Democratic candidates for state Senate and House seats. And if it’s startling to me, imagine how high-ranking Republicans like U.S. Sen. Mitch McConnell feel about the manner in which Williams has alienated so many Republican Party supporters.

Don Robinson (pictured, left, with Bill Farish), the president of the KTA/KTOB, said one of the horsemen in the meeting called the presentation by Williams and Thayer "smoke and mirrors". 

"By acclamation, (KTA/KTOB) supports  the Senate having a full hearing of the House bill," Robinson added,  He said the horse industry would have supported a constitutional amendment several years ago, but "it’s a different timetable now. We are in trouble. Mares are leaving the state. It’s too little, too late."

Thayer disagreed, saying, "It’s never too late to let the people decide."

If the VLT amendment passed and got local-option approval, the KTA’s Switzer said, it would be late 2013 or early 2014 before any revenue would find it’s way to the horse industry and state coffers. "Our backs are to the wall," he said. 

WILLIAMS DENIES ANY GAMBLING TIES
A final note: I asked Williams about his cease and desist demand in the wake of recent published comments from Lebanon, Ky., attorney James Avritt Sr., which suggested Williams’ opposition to racetrack VLTs might trace to out-of-state casino companies. "Who are  you?" Williams wanted to know after I said some people were interested in any personal experience with gambling he might have at out-of-state casinos.  When I said I wrote for the Paulick Report, he replied, "You’re the only who’s been saying anything about that." I also asked the Senate president if his law firm has represented any casino interests. "Absolutely not," he replied.

After that exchange, I got the feeling Williams probably would not invite me to Frankfort for a tour of the state capitol or a lunch at his favorite hangout (or, for that matter, on a road trip to Indiana’s Horseshoe Casino, located  just 20 minutes from downtown Louisville, Ky.).  But, on the other hand, he was in hostile territory and didn’t seem to be in the best of moods when I asked about any personal interest he has in gambling.

"We’re not his friends," said KTA/KTOB president Robinson. 

That might have been the understatement of the day.

Copyright © 2009, The Paulick Report

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