Last week, following two hours of testimony from horse industry representatives, a motion to repeal the rules that allow historical racing failed to pass the nine-member Texas Racing Commission. The vote was 4-4 with one abstention. Later commissioners unanimously agreed to republish the historical racing rules in order to gain more public input and revisit the issue in February.
That led new commission Chairman Rolando Pablos to request staffers “prepare a plan for shutting down the agency” since he expects conservative Republican lawmakers will not provide funding to maintain the agency. “The legislature has been very clear. If the rules aren’t repealed, funding will not be forthcoming,” Pablos said.
Fort Worth orthopedic surgeon Robert Schmidt recently resigned as commission chairman after declining to put historical racing last week’s meeting agenda. Schmidt said it made more sense to take up the issue in February and other commissioners agreed. “Why not give the industry two months to try to do something?” Commissioner Ronald F. Ederer asked.
Last month Governor Greg Abbott had named Pablos, who previously served on the commission and as chairman from 2008 to 2011, and Margaret Martin of Boerne to replace two members whose terms had expired.
The battle over historical racing machines, which began more than a year ago, resulted in lawmakers missing a key deadline to approve agency funding, which led to Texas racetracks closing for one day in early September since live betting or races could not be allowed without state regulation. State budget writers then extended commission funding for 90 more days, allowing racetracks to operate through late February. But some state officials have said if historical racing rules stay in place, more funding will not be allocated.
Historical racing supporters said the games are needed to help struggling Texas racetracks compete with out-of-state operations that offer casinos, larger crowds and bigger purses. Marsha Rountree, executive director of the Texas Horsemen’s Partnership, told commissioners, “Repealing the rules today is not in the best interest of an industry in crisis. Until someone comes up with a better idea, this is the best one we have. It’s time to move forward and not go backward into an industry that doesn’t have any hope.”
Jan Haynes, president of the Texas Thoroughbred Horsemen’s Benevolent and Protective Association, said the rules allowing historical racing were one of the few rays of hope for the beleaguered industry. “There is no Plan B. We are at the point where it will take some sort of gaming revenue” to help the industry survive. Mary Ruyle, executive director for the Texas Thoroughbred Association, said she has watched the decline of the horse racing industry. “Historical racing is what is best for Texas and it’s worth fighting for,” she said.
Last year, after commissioners approved historical racing rules, several legislators sued and threatened to stop funding or dissolve the agency. Bingo groups who felt threatened by historical racing filed suit in Travis County; an Austin judge agreed that the legislature, not the commission, has the authority to approve the games. Horse racetracks in Texas appealed the ruling and the case could go to court next month.
Andrea Young, president and chief operating officer at Sam Houston Race Park, said, “This industry has literally spent in excess of a million dollars to defend this in court. This legal case is a lifeline for the industry, a star of hope to follow.”
Schmidt said horsemen now the opportunity to talk to lawmakers about reaching a compromise over historical racing.
In a statement, state Lieutenant Governor Dan Patrick said he was disappointed in the commission’s vote. “It was my hope that today would be the beginning to finding a solution to resolving this issue for the long term benefit of the equine industry in Texas. Instead, irresponsible members of the industry have politicized this issue.”
Wes Melcher of Dallas, owner of the Double Infinity Ranch in Sulphur Springs agreed with that assessment. He said, “Today was a political move,” and added he was considering legal action of his own against lawmakers who would deny the commission funding.
Racing Commissioner Gloria Hicks said the commission approved historical racing rules after studying the issue and getting legal opinions that the agency indeed had the authority to take action on historical racing.
“I feel like I have been bullied. Lawmakers withdrew our funding. They are withholding it, wanting their way with the vote. I’m so disappointed. I’ve never seen this happen in my lifetime. I feel that something is wrong in the whole process.”
