Two Kentucky tracks plan to shut down historical horse racing operations
(The Center Square) – Representatives for Keeneland and Red Mile announced over the weekend the two Lexington, Ky., tracks would shut down their historical horse racing operation after a state’s Supreme Court decision issued last week.
The state’s top court posted a unanimous opinion in September that HHR machines are not legal under Kentucky law. Last week, the justices dismissed a motion for a rehearing on the matter.
That move means a decade-long case regarding the machines reverts to a circuit court in Frankfort, where a judge has been ordered to render a decision based on the Supreme Court’s opinion.
In the statement, the tracks said the decision to close for what they hope is just on a temporary basis was a very difficult one to make.
“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 statement read.
Legislation to legalize historical horse racing is expected to be taken up during the current Kentucky General Assembly session. Lawmakers will return to Frankfort to resume the 30-day session early next month.
HHR machines look nearly identical to slot machines. However, they use the outcomes of previously run races to determine winners of jackpots. Kentucky’s racetracks have used the machines to increase purses for their live race meets.
Industry representatives and supporters say HHR is not just essential to maintaining world-class racing, it also is vital for the livelihood of thousands of workers statewide. The equine industry has an estimated economic impact of about $6.5 billion in Kentucky.
“Historical horse racing is directly responsible for thousands of Kentucky jobs and nearly $1 billion in investment in our state,” said Kentucky Chamber of Commerce President and CEO Ashli Watts in a statement. “Now is not the time to put more Kentuckians out of work and to damage one of our state’s signature industries.”
The Lexington facility employs about 300 people.
Before the COVID pandemic, the parlor at the Red Mile harness racing track held more than 930 terminals. However,even with running about half the machines they have in the past Keeneland and Red Mile have seen a 15 percent increase in wagering this year, according to the Kentucky Horse Racing Commission.
Through the first six months of the 2021 fiscal year, the Lexington parlor reported a handle of $259.1 million. The tracks reported net revenues of $16.8 million.
The decision to close comes after the Family Foundation of Kentucky, which filed the lawsuit challenging the machines, called on the parlors to shut down in wake of the court’s decision.
As of Monday afternoon, no other tracks have decided to follow suit.
Since the first HHR machines went live in Kentucky in September 2011, more than $9.8 billion has been wagered across the state. The machines have generated $147.6 million in excise taxes for the equine industry and $59.3 million for the state’s general fund.
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