In a move that could mean its own demise, the Texas Racing Commission recently voted 4-3 with one abstention to uphold rules for historical racing. Racing industry leaders applauded the move but also expressed concern that it could once again anger legislators who could shut down the commission and, as a result, the industry, which could not continue to operate without a regulatory body. No tracks have offered historical racing yet to gamblers.
Last year, after the TRC approved historical racing rules, legislators said the commission went beyond its authority and the Legislative Budget Board said it would withhold the commission’s budget unless it repealed the rules. The TRC’s $7.7 million annual budget comes from licensing and fees paid by the racetracks, but legislators still must appropriate that money. If they don’t approve its budget before the commission’s money runs out on September 1, both the commission and the tracks it regulates could be forced to shut down, Commissioner Ronald Ederer said.
Last November, a state district court ruled the commission lacked the authority to allow Texas racetracks to install historical racing machines. Several Texas racetracks are appealing that decision, including Sam Houston Race Park. President Andrea Young said, “We look forward to having our day in court on historical racing, and are confident that the Court of Appeals will uphold the validity of these essential rules. We continue to have hope that the historic Texas horse and racing industry can thrive in Texas, continuing to employ thousands of hard-working people.” Young called the commission’s vote “perhaps the most pivotal moment in this industry’s history.”
The Racing Commission has not joined in the court appeals due to lack of resources. Racing Commission Chair Robert Schmidt said, “We believe the rules on historical racing are legal. We just don’t have the avenue to appeal.”
TRC press officer Robert Elrod said at the commission’s recent hearing, about 200 horsemen showed up to testify about why the TRC should not repeal the rules. Elrod said, commissioners told the horsemen, “So you understand that, if we don’t repeal these rules, the industry could be shut down. Is that a chance you’re willing to take?” He said virtually everyone answered, “Yes.” Industry spokesman Mike Lavigne noted, people in the Texas racing industry view historical racing rules “as a kind of life support until the legislature decides whether they want to give the industry any real help.”
Elrod added the TRC received more than 1,300 letters before the hearing. Only three opposed historical racing, including the Kickapoo tribe, which owns the Kickapoo Lucky Eagle Casino and donated over $150,000 to Republicans last October, the same time when lawmakers clashed with TRC’s historical racing rules.
According to TRC numbers, between 2004 and 2014, the total amount of money wagered at Sam Houston Race Park declined 72 percent. Lavigne said historical racing can’t save the industry but it could allow the tracks to offer more competitive purses. “It’s assistance. It’s not even about expanding. It’s just a matter of staying alive,” he said.
