Despite pleas from the state’s parimutuel industry, the Wyoming Pari-Mutuel Commission announced it will keep its suspension of historic horse racing terminals until the machines comply with state law. Commission President Randy Leinen said, “We understand the situation where shutting you down causes economic hardship for a lot of people. However, being in violation of the law per the attorney general’s opinion, I could not in good conscience allow this to continue.”
The commission suspended use of the machines on October 11 following the attorney general’s opinion that they do not conform with state law prohibiting slot machine-type gambling in most of the state. Live and off-track parimutuel operators had requested the suspension be lifted while they brought the machines into compliance. They said their operations are at risk because historic horse racing makes up 90 percent of their gross revenue.
Eugene Joyce, president of Wyoming Horse Racing LLC, said, “This is a crisis for our industry, and we just need to figure out how we can move forward. I don’t know of any business that can lose over 90 percent of its revenue for three or four months without dire consequences happening. And that’s what we face.” Joyce said his 100-employee company has grossed $7.5 million to date from historic horse racing, simulcast racing and live horse racing. However, he said 91 percent of gross revenues come from historic horse racing.
Eric Nelson, part owner of Wyoming Downs, said he has laid off up to 50 people in Wyoming and at his Las Vegas headquarters. He said the track has invested $10 million in equipment and buildings associated with the machines, which have “bells and whistles” similar to slot machines but, unlike slots, historic horse racing machine players compete against other players on other machines connected to the game. Nelson added the decision will end the flow of millions of tax dollars to state and local governments. This year the track offered live Thoroughbred racing from June 20 to August 9.
Both Joyce and Nelson noted historic race wagering still is legal in the state. They said before the terminals were put into use, the Pari-Mutuel Commission determined historic race terminals did comply with state law.
Only recently did the commission claim the machines contained a component of luck or randomness in contradiction of state law.
Joyce and Nelson added historic horse racing revenue has helped the live horse racing industry grow in Wyoming, with races in Evanston, Rock Springs, Gillette and Casper. “Without it, I mean live horse racing is dead. The industry is dead.”
Idaho also banned historic racing machines this year due to concerns they resembled slot machines.
