Since September 1, when Churchill Downs’ new $65 million Derby City opened in Louisville, the venue has paid the Kentucky Horse Racing Commission a fine of $1,000 per day following the discovery of a flaw in the facility’s 900 historical racing machines manufactured by Ainsworth Game Technology. Commissioners said the machines improperly included replays of races where horses were scratched, in violation of the commission’s regulations.
KHRC Director of Pari-Mutuel Wagering and Compliance Steve May said, “We’re making sure there were no other problems. So far, we haven’t seen any.” May said the commission will continue to investigate the new facility until it’s satisfied no bettors lost money due to other possible flaw in the machines. Churchill Vice President and General Counsel Justin Paul said the company is cooperating fully with the commission. Derby City grossed nearly $50 million in November alone, according to the agency’s staff.
Under state regulations, a race that includes one or more scratched horses is not a “historical horse race;” therefore betting on those races is unauthorized.
May said the preliminary investigation showed no patrons lost money playing historical horseracing machines including races with scratched horses. The scratched horses were not at starting post for the races so the official results were not affected. Two independent testing companies are performing tests on new databases being installed in every machine, May said. He will present a progress report at the commission’s next meeting in February, although work at Derby City may not be completed by then.
In late October, Judge Thomas Wingate of the Franklin Circuit Court ruled historical racing machines do not violate Kentucky’s gambling laws.
Meanwhile, in mid-November the KHRC voted 12-3 to award Churchill Downs and Keeneland racetrack in Lexington a license for a $125 million facility in Hopkinsville, set to open 2020, with 1,500 instant racing machines.
