Coffee King Challenges Oregon on License Delay

Coffee mogul Travis Boersma (l.) wants to make his Grants Pass Downs racetrack profitable racino with “historical horse racing.” He is frustrated with Oregon’s Racing Commission for slow-walking his licensing.

Coffee King Challenges Oregon on License Delay

Travis Boersma, co-founder of Dutch Bros. Coffee, who is proposing to install 225 “historical horse racing” terminals at his Grants Pass Downs racetrack, is challenging the Oregon Racing Commission’s delay in granting him licenses.

He and fellow backers of TMB Racing have filed a petition against the commission, alleging that the delay is caused by tribal objections to the machines, which gaming tribes claim are slot machines in all but name.

The petition alleges that the delay, “may be a result of waiting for the Oregon Department of Justice to advise on a handful of legal claims that some Oregon tribes have advanced about HHR wagering.”

According to Boersma, the machines allow players to bet against each other, not against “the house.” He notes that similar machines operated at Portland Meadows for several years without challenge by the commission. The petition declares, “Throughout that time, upon information and belief, the DOJ did not take any action nor make any adverse public statements regarding the legality of Portland Meadows’ HHR terminals.”

Gaming tribes counter that the technology for the HHR terminals has advanced considerably since that time and that the numbers Boersma contemplated would have the effect of creating a casino, not a racetrack.

The state’s voters in 2010 adopted a ban on commercial casinos and Oregon law obligates state agencies to cooperate with tribes on issues that affect them.

Last fall six tribes wrote to Oregon Governor Kate Brown complaining about the proposal and Brown applied some pressure to the commission to slow down its approval process.

The tribes also requested an audit of the Oregon Racing Commission to determine if it “has the proper regulatory framework, statutory authority, security controls, and staff expertise.”

Boersma claims he has consulted with tribal leaders, and added, “It’s my hope that tribal leaders will once again come back to the table to identify ways in which we can work together. Until then, our team has made it clear we will continue to work to provide jobs and support the economy while following all laws and guidance.”