THAYER: IT’S MY BILL OR THE HIGHWAY
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.”
Copyright © 2009, The Paulick Report
Savvy businesses recognize value. Advertise in the Paulick Report.
Sign up for our Email Flashes to get the latest news, analysis and commentary from Ray Paulick
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
December 22nd, 2009 at 2:09 pm
I also recall him saying on the show that KY’s slot bill should be the best in the nation, in reference to ensuring the legislature can’t redirect funds away from the horse industry on a whim but only by a constitutional amendment. Shouldn’t this be one of the main points of the bill and not a timeframe?
December 22nd, 2009 at 2:39 pm
Instead of continuing to beat the dead horse of government succor, why not lobby for a 10% takeout, legal bookmaking, and/or peer-to-peer? Marketed internationally, handle would increase to the point that other jurisdictions would have to do the same to level the playing field with Kentucky. It is pathetic to watch multi-millionaire horse owners begging for grandma’s quarters.
December 22nd, 2009 at 2:41 pm
When in KY for the Kee Nov sale, Thayer was on a TV show talking about his bill and the industry. When asked what he would do other than slots to fix the industry in KY, he started quoting Fred Pope verbatim about raising prices for it’s product.
This guy obviously has no clue about the industry and came across as a politcal weasel on TV.
Even though horse racing is doomed, if it is counting on Thayer for a short term band-aid, the OFFICIAL sign has been posted and the game is over.
December 22nd, 2009 at 3:08 pm
Higher pricing on a product where the supply already outpaces the demand is generally not a good idea, with the possible and notable exception of Grey Goose.
December 22nd, 2009 at 3:27 pm
Governor Beshear ran on the issue of letting the people decide this matter. A lot of smart industry folks think, somehow, that the people have forgotten that promise. Is there something in the brandy of Kentucky fat cats like Tracy Farmer and Breton Jones, or is it that they are just always used to getting their way? Boys, it doesn’t always work that way in the real world.
December 22nd, 2009 at 4:20 pm
And Thayer is supposed to a friend of the horse racing and breeding industry? With friends like him, racing in Kentucky sure doesn’t need any enemies.
December 22nd, 2009 at 5:12 pm
Kentucky horsemen are tramping along the bridge to nowhere already traversed by the Ohio horsemen; where is Plan B as the “nirvana” of slot machines at the tracks continues to be a mirage that’s waving seductively on the horizon?
Why is there such ignorance…unless misery loves company and the major players who can ship runners/breeding stock nationwide are playing for a straight flush, knowing they still have money in the bank when others not so fortunate have to abandon the game .
December 22nd, 2009 at 5:48 pm
Let Mr. Thayer have a small victory and give him a sit down chat. This humble decision will provide good PR and may secure a victory down the road?
Personally, I would view this sit down as an effort to work for its new found money, not an industry that thinks it is entitled to it.
December 22nd, 2009 at 6:10 pm
The Betfair peer-to-peer platform is the only area where racing interest is thriving. Growth of handle and fan interest is exploding. Now, one would think that the racing brain trust in the Land of the Free and the Home of the Brave would be aggressively pursuing that platform to re-ignite interest in American racing. But noooooooooo!
Let’s prop-up a half-dead granny in front of a flickering video screen, chain-smoking in- between oxygen gulps, until her SS check is ground into a racing purse. Nice.
It is not only the politicians, but the Kentucky jack-booted jackasses that are living off their grandfather’s bootlegging inheritance, that are the biggest obstacle to improving the racing product. And until that money runs out and that wasted generation fades away, racing will remain in its current sorry state of ineptitude. The pilfering and plundering of the betting handle has left the bettors punch drunk. Why do breeders get a slice of the betting handle? Isn’t the sales price enough for these greedy thieves? There’s a new bet proposed that has a 35% takeout. These people are slow learners. Why return anything to the bettors? The thrill of a winning selection should be enough to satisfy the degenerate chaps.
Any business that doesn’t put the customer first will end up last. And, like it or not, the bettor is your customer. Without the bettor, your horses are worth about 80 cents on the hoof. Without the bettor, the Breeder’s Cup would be plastic. The only questions that I have never seen asked, at least on the Paulick Report, is, “how do we get the customers back, and how do we attract new customers?”
December 22nd, 2009 at 7:57 pm
“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 has got a point. 15 months ago the industry leaders would have jumped at the chance to have a ballot pass the senate. I only agree with a handful of Damon’s points, but why not take a chance at working with him. He might suprise you. If he is a fraud, work with him and expose it.
Has anyone considered that the tracks either don’t have the money, or don’t want to risk the money on the chance of winning a statewide referendum?
Unfortunately, the only other choice is to sit in gridlock for another stack of years.
December 22nd, 2009 at 8:21 pm
I would like to know if there is a number out there that if slots passes. How much for purses and how much for track.
December 22nd, 2009 at 10:13 pm
Could not have said it better my self Phil. Wonder how much money the folks in Buckhead (that’s in Atlanta, Fatty) would generate for KY purses if they could even be allowed to bet in a Betfair peer to peer platform.
And the other thing that makes it hard to surpress a giggle, is when young smiling Bill F. thinks that folks in Lex or Lou wiill avoid the table games (ie $5 dice table) in Indiana to stay home and gamble on a tight as a crab’s ass VLT terminal at the Red Mile/Churchill,Ellis, Turfway,
December 23rd, 2009 at 7:56 am
Whats happened in the last 12 months Senator Thayer is that mares are leaving Kentucky at a scarey rate to Louisiana, Penn and Indiana. Maybe you should go visit some of the farms that are losing 30 or 40 percent of their horses to these other states where the politicians seem to care more about the horse industry than they do in the thoroughbred capital of the world.
December 23rd, 2009 at 9:36 am
That sure was a great idea that already-wealthy Kentucky track owners - including the ones from out-of-state - had to align themselves with Obama, Beshear and socialism and against the values and economic interests of the vast majority of the people of Kentucky.
What have Obama, Beshear, Reid and Pelosi done to help you now?
December 23rd, 2009 at 11:17 am
You know,I’ve watched this so-called exodus of Kentucky horse flesh.It’s horse flesh that would be leaving anyway.Why-because by Kentucky standards they are considered not commercial enough for Kentucky.When the rest of the World has no desire to breed to some of these stallions then they are pretty much done in Kentucky.When you have stallion syndicates composed of investors but not mare owners then what do you expect.Kentucky mare owners support them?
Of the top 25 leading sires currently standing in Kentucky one has left.But weather Kentucky had casino gambling funded races he probably still would have left - That one horse is Victory Gallop and he went to Turkey.Sure does make all those mare owners happy that a horse they supported gets exported to oblivion.
Then in the next 25 you have
Silic who left a while back and wouldn’t even be a blip on Kentucky’s list if not for Gladiatorus;
Menifee-another one sold to oblivion in Japan;
Jump Start goes to Pennsylvania for a $10,000 fee (I wonder if the general public has as strong of a broodmare band that Overbrook had?);
Posse goes to New York for a $10,000 fee (I was curious just how long the farm was going to support this one?—what was it,about 85% of those first crop two year old winners bred & owned by the farm and trained by Steve Asmussen.This formula was created by Harry Mangurian’s Mockingbird Farm and Mark Casse - the difference is they sold most of them in the 2 year old in training sales,they did breed them and nurture them and train them and sold them but rather than the farm making those leading Freshman sires End Sweep and Rizzi,ect. it was the general public and many different trainers.Mockingbird spent the dime and expertise to put a foundation on them.
Johannesburg goes to oblivion in Japan.
Hold That Tiger goes overseas;Came Home is in Japan—so of the top 75 leading sires currently in Kentucky 8 have left.
Of the leading freshmen sires you have Stormin Fever (who left a while back,not this year);Yankee Gentleman went to Louisiana;Consolidator is in Florida;Buddha is in Pennsylvania(another that left a while back and I can’t believe he even made it on the list);Chapel Royal is in Florida(where I look for him to do a heck of a lot more as a sire than he did in Kentucky) then you have a few of the ones mentioned above so again 8 of the leading 75 have left.
Now when you look at a 3rd crop sire list you see a big exodus of non-commercial horse flesh that has left Kentucky.Posse,Hold That Tiger,Yankee Gentleman,Aldebaraan,Sunday Break,Kafwain,Milwaukee Brew,Sligo Bay,Century City,Volponi,Changeintheweather,Trust N Luck,Wiseman’s Ferry,Morluc,ect,ect—in fact only 18 are still in Kentucky but that has nothing to do with Kentucky tracks not having slots but it has everything to do with the fact that they were not commercial enough for Kentucky.
So is there really an exodus,or is it just a time to cull a tad more aggressively.I have a real tough time dealing with clients wanting to breed in Kentucky to a stallion whose covering sire sale averages are less than their current stud fee,not to mention having to pay hauling,board bills and vetting fee’s on top of it and then taking that chance of taking a mare ready to breed in February and she doesn’t get in foal till June.
This is good for Kentucky,I think it would be nice to see another state become the horse capital of the World,but then again,how can that be when none of the true leading sires in Kentucky have left???
December 23rd, 2009 at 12:26 pm
There are some pearls in Jeff’s comments #15. He makes a good case for putting blame for the “exodus” where it belongs.
Also, Rick Barton, #12, makes a shrewd observation re Junior Farish’s thinking. However, in fairness, how can we expect a ’silver spooner’ to have any appreciation of the real world and the thinking of real workers?
December 24th, 2009 at 6:25 am
Jeff’s point is NOT valid. The breeding industry in Kentucky is not based on the top 25 stallions. If that were the case Kentucky would only need a few breeding farms. Plus, please consider the numbers of mares leaving Kentucky to foal in out of state programs. Basically Jeff is wearing closed blinkers!
January 1st, 2010 at 10:37 am
This site is epic, I am going to put this in the bookmarks before I misplace the link I don’t believe I’ll ever make it back here otherwise!