Tarrant County District Judge David L. Evans in Fort Worth, Texas recently dismissed state Rep. Matt Krause’s lawsuit against the Texas Racing Commission that would have blocked a plan to allow historical racing machines at dog and horse racetracks statewide. Although Evans agreed with Krause that the commissioners do not have the authority to allow the machines, he said in his ruling that he had to dismiss the case because Krause did not have the standing to intervene.
“I’m disappointed. I would have loved to have gotten the injunction and stopped this here. But the judge seems to agree with us that the commission operated outside their authority. I feel a bit vindicated that the judge agreed with us on the law,” said Krause, who is considering an appeal.
The commission voted 7-1, with one abstention, on August 29 for a rule change to allow historical racing. The rule change has been submitted for publication and is scheduled to take effect September 28, barring legal action, commission spokesman Robert Elrod said. He noted track owners cannot immediately install the machines, because each track must apply to the commission for a permit to use historical racing. The commission will review each request and each game case by case, Elrod said.
Elrod said he could not comment about a second lawsuit to stop historical racing that recently was filed in Austin by two dozen groups that benefit from charitable bingo. The suit claims the new historical racing rule violates the Texas Racing Act and the Administrative Procedure Act as well as the Texas Constitution.
Austin-based attorney Steve Bresnen, a lobbyist who represents charitable bingo interests, said, “We know from experience in other states that this important source of charity support, which sustains more than 1,000 organizations all over Texas, will dry up virtually overnight if casino gambling is allowed and bingo cannot compete. We have no choice under the circumstances except to oppose the commission’s illegal actions.”
Other opponents of historical racing, who believe the machines are similar to slot machines and will bring casino-style gambling to Texas, said although Krause did not win, Evans’ ruling sends the proper message. Christine Dorchak, president and general counsel of the greyhound protection group Grey2K, said, “It is clear from the ruling that the racing commission did not have the authority to approve instant racing. Even though Judge Evans found that slot machines are certainly not the equivalent of horse and dog racing, he was forced to dismiss this first injunction on a technicality. We are confident that the instant-racing rule will be overturned.”
Supporters of historical racing, who have said the machines would help struggling racetracks compete with out-of-state tracks that offer casinos and larger purses, also were encouraged by Evans’ ruling. John Elliot, chief executive officer of Lone Star Park owner Global Gaming Solutions, said, “We remain hopeful that the racing commission will ultimately prevail and assistance can be provided that is much needed to the racing industry.” He said Lone Star officials are considering applying to the commission to let them install historical racing machines.
Andrea Young, president of Sam Houston Race Park, said, “We thank Judge Evans for his ability to focus on the law in this case. While we disagree with some of the statements in the opinion, we agree with his ruling. We look forward to making an application under the historical racing rule to ensure that the Texas horse industry can have the benefit of this important new technology and the added purses it will create.”
