Kentucky Governor Andy Beshear signed into law SB 120, which changes the definition of parimutuel wagering to include historical horseracing machines. The legislation was necessary after the Kentucky Supreme Court ruled in September that some HHR machines are illegal because they are not parimutuel wagering under Kentucky law. Due to that ruling and the high court’s rejection of an appeal, Red Mile racino in Lexington temporarily closed.
Kentucky Governor Andy Beshear recently signed SB 120. Prior to signing the bill, Beshear said, “I’m 100 percent for it. This is a win for the entire commonwealth.” Beshear noted although the bill protects the thoroughbred industry, it’s still necessary to “get the second piece of this done on the tax structure. We need a fair and equitable tax structure.”
The Kentucky Equine Education Project had praise for Beshear. “We thank Governor Beshear for signing Senate Bill 120 into law, which ensures the future of our equine industry while protecting thousands of local jobs. Kentuckians and the legislators who represent them have made clear that they support historical horse racing and the many benefits it brings to our communities. We are optimistic about the horse industry’s road ahead and remain committed to keeping Kentucky a world-class racing destination for many years to come,” the group said in a statement.
Martin Cothran, senior policy analyst at the Family Foundation, which filed the lawsuit that led to the Supreme Court ruling against HHR machines, said, “Lawmakers didn’t address the problems with the bill opponents had pointed out. Instead, it ignored them, and rather than the horse tracks and their allies on the Kentucky Horse Racing Commission changing their actions to bring them into alignment with the law, lawmakers simply changed the law to suit a very wealthy and influential special interest. The horse industry made a deal with the Devil, add that’s never a good bargain.”
State Rep. Steve Sheldon was among lawmakers who voted against SB 120. He stated, “I voted my conservative beliefs and values. It was framed as merely changing the definition of parimutuel wagering, but expanded gambling is about what it amounts to.” He agreed that taxes on HHR revenue must be raised significantly, noting, “In Illinois, Indiana and other gambling states, they’re getting twice the tax revenue we’re getting. There will be a push for Kentucky racetracks to pay their fair share in taxes.”
Jason Bailey, executive director of the Kentucky Center for Economic Policy, said players spend three times more on HHR machines than on lottery tickets, but the lottery takes in nearly 20 times more tax revenue.
HHR has significantly benefited the state’s racetracks including Kentucky Downs, where betting increased from $20 million in 2010 to $800 million in 2018. Due to that growth, the state Horse Racing Commission recently approved Kentucky Downs’ request to expand its licensed premises in Franklin to an extension facility in Bowling Green. A location has not yet been announced.
Kentucky Downs officials said the number of machines will be doubled at the venue after the completion of a $25 million renovation and expansion announced in 2019 by owners Ron Winchell of Lexington’s Winchell Thoroughbreds and former Nevada casino executive Marc Falcone, who purchase the venue in 2018. The project will add 13,000 square feet of gambling space, new restaurants and a hotel.
In a letter to KHRC Executive Director Marc Guilfoil that accompanied Kentucky Downs’ application for an extension facility, Winchell wrote, “The location will be a great benefit to the city of Bowling Green and Warren County, bringing additional tourism, tax revenue and much-needed jobs, as well as a benefit to the continued growth of horseracing in the commonwealth.”
