This year will be a busy one in legislatures throughout the country. Here’s what Fantini Research Public Policy Review Editor Laura Briggs has to say about it in her special report: 2019 National Legislative Preview.
“As we move into 2019, sports betting will continue to be the biggest topic in gaming expansion, but we also expect to see efforts for iGaming, casinos, lottery and fantasy sports.
“Land-based gaming is set to expand, with Arkansas casinos coming this year, Georgia efforts regrouping, and continued expansion talks in Illinois.
“Slot route supporters will try again in Missouri and Pennsylvania, and historical horse racing machines will launch in Virginia, see continued efforts in Nebraska and Illinois, and the reintroduction of legislation in New Hampshire and New Jersey.
“Sports betting will lead the way in gaming-related legislation, with up to 20 states expected to introduce bills this year.
“Of those, Virginia, Kentucky, Ohio and Missouri might be among the first movers this year.
“So far, nine states now have legal markets with the addition of Michigan late last year, though it still awaits governor approval and won’t come online until at least 2020.”
One of the phenomena that legislators and policy makers in various states will have to deal with is historical horse racing, or instant racing.
At present, historical horseracing is a tiny niche, just 3,700 machines in the US. But their numbers are growing. Churchill Downs recently opened a 900-machine facility in Louisville and is planning a 1,500-machine facility with Keeneland in southern Kentucky just 50 miles from Nashville and its two million metro residents.
Churchill Downs’ machines are supplied by Ainsworth. It and Churchill Downs are the only public companies involved with historical horse racing at present.
The machines throughout the U.S. average $115 a day in revenue, though Kentucky Downs, also near Nashville, does a more impressive $220 a day. And there is some competitive impact. The new Churchill Downs facility called Derby City has clipped revenues at nearby Caesars Southern Indiana.
Derby City opened in September and in October Caesars Southern Indiana slot revenues fell 10.19 percent, then in November they dropped 15.14 percent.
Historical Horse Racing: Examining the Potential of an Emerging Sector in the Gaming Industry, is the topic of a white paper, also produced by Laura Briggs. Here is her description of the machines:
Sometimes called instant racing after the original product name, historical horse racing machines differ from slot machines because bets are pooled in a pari-mutuel fashion with game outcomes decided by the random selection from a database of historically run races.
This presents a gambling option in states where casino gaming isn’t permitted, or where adding casino gaming to racetracks would create competition for existing commercial or tribal casino industries.
The machines look like slot machines.
They play a randomly selected video of a historically run horse race from a library of tens of thousands of races. The identifying information such as the names of the race, horses, locations and dates are withheld. Gamblers are given handicapping data such as jockey and trainer win percentages, the horse’s odds, and certain statistics on past performances.
The player has the option of setting handicaps and choosing the order of race finishers. This may give the player a feeling of some control over the potential outcome, further differing the product from traditional slot machines.
But that option slows down play. So, a player can also choose to let the machine pick the races by simply pushing the bet button and watching flashing graphics and spinning reels, just like any other slot machine.
Anyone who would like to know more about Laura’s outlook on gaming legislation or about historical horse racing can contact her at LBriggs@FantiniResearch.com.
