The board of the Kentucky Equine Education Project recently voted to oppose casino gambling at the state’s racetracks and instead focus on historical racing machines. KEEP said it believes that the slot-like games, which were allowed in Kentucky in 2011 as an alternative to casinos, “will have a significant economic impact.” KEEP added the board appreciated the efforts of elected officials who “worked for consensus” on the issue to benefit the horse industry. Measures to allow casinos at the state’s racetracks have repeatedly failed in the legislature.
Founded in 2004 to present a single voice for the often-divided horse industry, KEEP had never before officially opposed racetrack casinos.
Earlier this year the Kentucky Supreme Court effectively declared historical racing games to be legal, but allowed a lawsuit challenging their legality to proceed. The games have offered
Churchill Downs Inc. President Kevin Flaner was critical of KEEP’s new stance. He said casinos remain necessary and that “the historical racing model in Kentucky has demonstrated it does not compete well in markets with existing casinos, nor does it create meaningful revenue for the state. Any effort to limit gaming to this product is shortsighted for the industry and the state.” Churchill Downs is not a KEEP member.
At Keeneland, which left KEEP two years ago, Chief Operating Officer Vince Gabbert said casinos are not part of its legislative agenda although the racetrack has not officially opposed them. Gabbert said Keeneland believes casinos could be beneficial but only under circumstances that protecting the horse industry. He stated Keeneland plans buy a harness racing track in Prestonsburg, convert it to quarter horse racing and install a historical racing parlor there.
Senate Majority Floor Leader Damon Thayer, who previously sponsored Governor Steve Beshear’s efforts to allow casinos at racetracks, said historical racing results at Kentucky Downs have reduced the urgency of passing any casino legislation. KEEP Chairman Corey Johnsen is president of Kentucky Downs.
Beshear, who ran on the casino issue in 2007, said this summer casino supporters have not been able to agree on an approach. In April House Speaker Greg Stumbo said casinos at racetracks would be the legislative priority for 2015, but recently he said the issue now is not as immediate.
The Democrat-controlled House remains the only chamber to pass a casino bill, during a 2009 special session. That bill and the one sponsored by Thayer for Beshear died in the Republican-majority Senate.
