A Senate committee advanced a bill Thursday to legalize historical horse racing machines in Kentucky, which closely resemble casino slots.
The horse racing industry is banking on the bill to keep their lucrative facilities open after the state's highest court ruled them an illegal form of gambling.
Senate Bill 120 passed unanimously through the committee despite strong criticism in testimony from representatives of the Family Foundation of Kentucky, who argued such a change could be made only through a constitutional amendment and would be struck down again in court.
The Kentucky Supreme Court ruled last year and reaffirmed in January that these slot-like machines do not constitute legal pari-mutuel wagering such as live horse racing, raising alarms in the industry about the facilities having to close and cutting off a major source of revenue.
Keeneland Association attorney Bill Lear told legislators the Supreme Court decision declaring the machines illegal stated if the state's definition of pari-mutuel wagering is to be changed, it "must be made by the people of the commonwealth through their newly elected legislature" — arguing this meant a statutory change instead of a constitutional amendment requiring a statewide referendum.
Family Foundation spokesman Martin Cothran countered it was "preposterous" to attempt to include machines indistinguishable from slots within the definition of pari-mutuel wagering such as live horse racing with pooled bets, saying the bill was clearly an unconstitutional expansion of gambling.
Referring to Churchill Downs, Cothran said the company "has moved further and further away from horse racing, becoming an ever more lucrative multibillion-dollar casino corporation. Its stock is also publicly traded, which means it is owned by shareholders, many of whom reside out of state."
Senate Majority Floor Leader Damon Thayer, R-Georgetown, took issue with what he called the "overtly specious" and "glib" testimony of the Family Foundation, saying he had "never seen testimony that insulted an entire industry more than what I heard today."
In a December committee meeting, Thayer warned Family Foundation officials that if they blocked the effort to legalize HHR machines in the upcoming session, 100,000 jobs in the Kentucky industry would be at risk and "the blood will be on your hands."
Kentucky Equine Education Project, a horse racing advocacy group, applauded the committee's advancement of SB 120 in a statement, arguing it "is solely about maintaining the status quo and preserving the jobs and economic development opportunities that historical horse racing has consistently provided our state."
The bill could clear the full Senate as early as next week but may face a tougher test in the House, where the Republican caucus remains divided between supportive urban members and anti-gambling rural members. This division within the caucus last year blocked a bill to legalize and tax sports wagering, which has stalled again this session.
Reprinted with permission from the Louisville Courier Journal