Kentucky, a state that has seen repeated failures in legislative attempts to add legal slots or other casino games to its storied racetracks, may have hit upon a good alternative solution in instant racing, the slot-like machines that allow wagers on anonymous historical horse races and then run video of them, paying out on wagers just like a slot.
Two Kentucky horse tracks, Red Mile and Keeneland, reported the first results of a partnership under which 902 instant racing machines, jointly operated by the two tracks, were installed in a gambling parlor at Red Mile, at a cost of $42 million. The games are a hit. According to figures released last week by the Kentucky Horse Racing Commission, the machines raked in more than $5 million in wagers the first 19 days it was opened, averaging nearly $300 wagered per machine, per day beginning with its opening on September 12.
Of the $5.1 million wagered, $4.7 million was returned to players in the form of winnings—a net hold of around 8.8 percent of wagers. Red Mile and Keeneland split $333,5143.01 in net profit for the 19-day period.
The remaining $410,248 was split among taxes, purses and track costs. The state received nearly $77,000 in taxes—$11,509 for the state General Fund and the rest for various equine-related funds.
The Red Mile parlor joins Kentucky Downs in Franklin as the only locations to install instant racing. Kentucky Downs’ 500 machines drew more than $29.5 million in wagering in September—a handle of $1,967 per day, per machine.
