Tennessee Governor Bill Haslam plans to establish a seven-member Horse Racing Advisory Committee to conduct a two-year study and make recommendations about reviving horse racing in the state. Currently horse racing is legal in Tennessee, but betting on the outcome is not. State Senator Frank Niceley, co-sponsor of the legislation authorizing the committee, said a bill to legalize parimutuel wagering would be required.
The bill authorizing the committee received overwhelming support in the Senate but barely passed in the House.
Tennessee’s racing industry is challenged by online gambling and by electronic gaming machines allowed at racetracks in neighboring states, where casinos already attract players from Tennessee.
According to the Tennessee Encyclopedia of History, Tennessee was a major horse capital in the 19th century, surpassing Kentucky. Andrew Jackson bred and raced thoroughbreds. And former slave Cal Johnson of Knoxville became a millionaire owning racehorses and saloons in the late 1800s. Niceley said lawmakers outlawed horse race betting in 1906 partly in response to Johnson. In 1987 under the Racing Control Act, the legislature approved legalized parimutuel wagering on horse racing and created the Tennessee State Racing Commission. However, the commission was eliminated in 1998 and the Racing Control Act was repealed last year.
According to a study by the Canadian Consortium for Gambling Research, racetracks stimulate the economy by providing employment and tax revenues, and indirect support farmers, breeders, hotels and other businesses. Tennessee horse race insiders also are encouraged that American Pharaoh, the first Triple Crown winner in 37 years, has created new interest in the sport.
