Keeneland Hopes Shutdown of its HHR Brings Urgency

Keeneland officials acknowledge that halting wagering on historical horse racing at The Red Mile may be a conservative approach but they hope the stoppage creates some urgency among Kentucky lawmakers.

The Kentucky Horse Racing Commission, tracks, and the Kentucky industry hope the state's general assembly introduces and approves legislation at its current session to protect HHR gaming, which has been critical to racing and breeding in the state. A September opinion from the state Supreme Court that determined at least one brand of HHR operating in the state is not pari-mutuel, has put the wagering on uncertain footing.

Though HHR devices resemble slot machines, their results are determined by previously run horse races. A portion of their generated betting goes toward race purses.

During a Kentucky Thoroughbred Development Fund advisory committee meeting Jan. 26, Keeneland vice president and chief operating officer Vince Gabbert explained a Jan. 24 decision to halt HHR gaming at The Red Mile, an HHR facility operated in partnership by Keeneland and the Lexington Standardbred track. The announcement followed the Supreme Court's denial of a request to reconsider aspects of the case, sending it back to Franklin Circuit Court.

"We did, as you can imagine, some significant research and going back and forth, to ensure that that we were making the right decision as relates to our joint entity between us and The Red Mile," Gabbert told the committee. "I will tell you that we feel like we took a very conservative approach. But I think we've seen the measures that we took over the weekend have helped bring the urgency even more to the forefront so that the legislature understands the impact that historical racing not only has on racing but on the economy of the commonwealth. Hopefully we will see a legislative remedy in the next couple of weeks."

HHR has provided a significant boost for the KTDF, generating about $15,577,748 for the fund in fiscal year 2020. At Tuesday's meeting J. David Richardson, who represents the Kentucky Thoroughbred Owners and Breeders Association on the advisory committee, said he wished the Keeneland/Red Mile HHR operation had remained open. Gabbert confirmed to Richardson that the HHR was not specifically required to close.

"I guess I can understand it," Richardson said. "Obviously we all know the climate; I think we're all well informed about that."

Kentucky Downs has opted to keep its HHR facility open. Churchill Downs Inc. does not use the brand of HHR examined by the court and has continued its HHR operations at its Kentucky facilities with the devices. In a statement, CDI said it would await guidance from the KHRC after a final Franklin Circuit Court decision and will support legislation to protect the legality of HHR.