Kentucky Senate approves historical horse racing bill

LEXINGTON, Ky. – A divided Kentucky state Senate on Tuesday approved a bill that would sanction electronic gambling devices that are currently in use at most of the state’s racetracks, providing a measure of relief to the state’s racing industry.

The bill, which will still need to be taken up by the House, passed on a vote of 22-15, with one abstention, with both Republicans and Democrats divided on the legislation. Republicans hold a 30-8 supermajority in the chamber. Republicans also hold a supermajority in the House, where the bill’s passage is seen as facing a higher hurdle.

The bill is the single-highest priority for the state’s racing industry, which has increasingly embraced the devices since they were first authorized by the Kentucky Horse Racing Commission in 2010. The devices, which are known as historical horse racing machines, have generated hundreds of millions of dollars for their operators and provided generous subsidies to purse and breeders awards in the state.

Last year, the Kentucky Supreme Court issued an opinion holding that a type of machine at use at some of the tracks in the state did not fit the legal definition of parimutuel wagering. The bill passed by the Senate on Tuesday modifies that definition to legalize the devices.

Most of the supporters of the bill cited the devices’ impact on the racing industry in the state and contended that outlawing the machines would have a deleterious impact on racetracks, horsemen, and local economies – even as some of the supporters contended that they were uncomfortable with gambling.

“My vote today is not to support gambling, my vote today is to support an industry in which our state is known throughout the world,” said Sen. Phillip Wheeler, R-Pikeville.

Other Senators who voted for the bill said that they supported further efforts to clarify the legality of the machines through a constitutional referendum, which would require a ballot vote, while predicting that the legal challenges that led to the 2020 Kentucky Supreme Court ruling would be re-launched if the legislature fully approves the bill.

“At some point, we need to settle this issue by putting this in front of the voters in the form of a ballot,” said Sen. Ralph Alvarado, R-Winchester, who voted in support.

In addition, other supporters said that the legislature needs to change the tax rates governing the machines, maintaining that the state’s casinos – which are all licensed racetracks – pay too little tax to the state. On Tuesday, many members of the state’s Democratic caucus co-authored an editorial in the Lexington Herald-Leader calling for the tax rates to be raised.

“There’s nothing to prevent this body from coming back next session and adding taxes to this,” said Sen. Johnnie Turner, R-Harlan, who voted in support of the bill despite saying that he was opposed to gambling.

Opponents of the bill cited their opposition to gambling or their belief that the legislature was not the proper venue to settle the question of the legality of the devices. Other senators expressed disapproval of the horse racing industry using the devices to prop up its fortunes.

“This legislation does nothing to ensure the continuation of live racing in Kentucky,” said Sen. David P. Givens, R-Greensburg, who voted no. “Subsidized industries don’t last.”