Texas Racing Commission approves out-of-state simulcasting
The Texas Racing Commission on Wednesday approved out-of-state simulcasting for Sam Houston Race Park, according to its executive director, ending a blackout of the track’s signal due to the commission’s unwillingness to fall under the regulatory jurisdiction of the Horseracing Integrity and Safety Authority.
Amy Cook, the executive director, said that the commission reversed itself due to a ruling released late Tuesday by the U.S. Fifth Circuit Court of Appeals that denied a motion from HISA to re-hear a case in which the court had held that HISA’s enabling legislation had several constitutional deficiencies. The order is effective immediately, Cook said.
Cook had previously declined to approve out-of-state simulcasting contracts for Lone Star Park and Sam Houston after HISA implemented a racetrack safety program on July 1 of last year. HISA’s enabling legislation gives it jurisdiction over any races that are made available for wagering over state lines.
The Texas Racing Commission has held that state law requires the commission to regulate all aspects of racing operations and that giving HISA authority over races held in the state would violate those laws. The ruling by the Fifth Circuit on Tuesday applies to the three jurisdictions it oversees – Texas, Louisiana, and Mississippi.
“That was the legal result we were waiting for,” Cook said. “We’re not going to worry about it anymore. We’re just going to focus on making Texas racing the best in the nation.”
Handle at Sam Houston Race Park has cratered this year due to the inability to send its signal out of state, falling more than 90 percent, according to an analysis conducted by Daily Racing Form earlier this year. Handle at Lone Star also declined a similar amount for the last several weeks of its live race meet last year after it lost the ability to send its signal out of state in July.
Chris McErlean, the vice president of racing for Sam Houston’s parent company, Penn Entertainment, said that the signal for Sam Houston should be available in out-of-state markets as of the track’s next day of live racing, Friday. McErlean had previously called the situation in Texas “not sustainable” in the long-term due to the massive handle declines.
Sam Houston’s signal is bundled in simulcasting contracts with other racetracks owned by Penn, McErlean said, and those contracts will enable sites to add Sam Houston to their simulcast menus without the need for new contracts.
“We should be ready to go on Friday,” McErlean said.
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