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Kentucky Lawmakers to Discuss Planned HHR Legislation

Legislation needed on HHR, which has been critical to Kentucky industry.

Historical horse racing games at the Red Mile

Historical horse racing games at the Red Mile

Red Mile Photo

With the future of historical horse racing in Kentucky up in the air, supporters plan to meet Feb. 1 at Keeneland where state lawmakers will discuss legislative efforts at the current session.

The Kentucky Equine Education Project, Kentucky Chamber of Commerce, Kentucky Thoroughbred Farm Managers Club, and Kentucky Thoroughbred Association have organized the meeting for 6 p.m. ET at Keeneland's Entertainment Center and Keene Barn. 

The event, sponsored by Breeders' Cup and Jackson Kelly, will be led by Kentucky State Rep. Matt Koch (Republican, Paris) and will include Agriculture Commissioner Ryan Quarles, Senate Majority Floor Leader Damon Thayer (Republican, Georgetown), Rep. Adam Koenig (Republican, Erlanger), and Sen. John Schickel (Republican, Union), as well as Kentucky Chamber of Commerce president and CEO Ashli Watts. Koenig chairs the House License and Occupations Committee and Schickel chairs the Senate License and Occupations Committee.

The meeting follows legal setbacks last year and early this year for HHR gaming, which for a decade has provided critical revenue for Kentucky racing and breeding.

In late September the Kentucky Supreme Court issued an opinion that at least one brand of HHR operating in the state is not pari-mutuel. On Jan. 21 that court denied a petition filed by the Kentucky Horse Racing Commission and several state tracks asking the court to reconsider its Sept. 24 opinion. 

The petition had asked the court to reconsider several findings on which it based its final opinion that Encore Racing Based Games' system is not pari-mutuel.

The Family Foundation, which pursued the case to the state Supreme Court, believes the ruling calls into question the legality of all historical horse racing machines operating in Kentucky.

Following the court's Jan. 21 decision, Keeneland and the Red Mile announced Jan. 24 the temporary closure of their joint HHR operation located at the Red Mile. 

"We were disappointed the Kentucky Supreme Court denied our petition for a rehearing. At this time, Keeneland and Red Mile have made the very difficult decision to temporarily close historical horse racing operations until there is more clarity surrounding the situation," Keeneland and Red Mile said in a joint statement. "We have confidence the Kentucky legislature will continue its efforts to protect jobs and state revenue generated by historical horse racing, as well as protect Kentucky's signature horse racing industry."

The Supreme Court's September directive was to return the case to Franklin Circuit Court "for entry of a judgment consistent with this opinion." When it released its September opinion, the court suggested legislative action was needed.

"We acknowledge the importance and significance of this industry to this commonwealth," the Supreme Court opinion read. "We appreciate the numerable economic pressures that impact it…If a change, however, in the long-accepted definition of pari-mutuel wagering is to be made, that change must be made by the people of this commonwealth through their duly elected legislators, not by an appointed administrative body and not by the judiciary."

That legislative push will be furthered at the Feb. 1 event at Keeneland. Gov. Andy Beshear (Democrat) supports legislation that would define HHR as legal, and a number of prominent lawmakers in the Republican-controlled General Assembly also have noted their support. Through Jan. 24, legislation had not yet been introduced, but KEEP is confident such legislation soon will be unveiled.

With most of the legislative work at this year's session expected in February (17 legislative days) and March (nine legislative days), the Feb. 1 panel appears to be well-timed.

"As you know, HHR is under threat following the Kentucky Supreme Court's ruling that called into question the legality of HHR," KEEP said in a release calling for industry support of the Feb. 1 event. "Now it is up to the state legislature to take action to preserve HHR and its unparalleled impact on Kentucky's horse industry."

KEEP said the elimination of HHR would not only mean the loss of purse enhancements, 1,400 jobs, and more than $1 billion in investment, but also would cause a negative economic impact extending through businesses and individuals that support the industry, including breeders, feed and bedding suppliers, tack and equipment dealers, veterinarians, farm hands, blacksmiths, owners and trainers, and others. 

In order to create a safe environment for the Feb. 1 event, all COVID-19 protocols will be followed.

Temperatures will be checked at the entrance and attendees will be required to wear masks and observe social distancing. The event also will be live streamed via Zoom. To attend, or to receive the link to watch the event, please register here. All attendees will be required to register by Friday, Jan. 29.