Kentucky Senate Approves Historical Horse Racing Bill

With supporters noting the importance of protecting state jobs in Thoroughbred racing as well as agriculture jobs and others tied to the industry, the Kentucky Senate approved a bill Feb. 9 that protects historical horse racing.

Those arguments just did win the day over opponents who brought up moral concerns tied to gambling as the bill passed with bi-partisan support, 22-15. The legislation also has the support of Gov. Andy Beshear, a Democrat, and will first have to pass the House, where another close vote is expected.

On the House side, the bill is expected to be heard in the House Committee on Licensing, Occupations, and Administrative Regulations before heading to the House floor for a vote. That committee will consider the bill in a meeting that begins at 8 a.m., Feb. 10.

The bill is sponsored by Sen. John Schickel (Republican, Union), who chairs the Kentucky Senate Licensing and Occupations Committee that advanced the legislation Feb. 4. It also has the support of Kentucky Sen. President Robert Stivers (Republican, Manchester).

While historical horse racing has operated in Kentucky for about a decade, it's legality was called into question when the state Supreme Court in September ruled that at least one brand of HHR was not pari-mutuel. The Court's opinion specifically called on lawmakers to update the pari-mutuel definition to include HHR, if Kentucky lawmakers wanted the games to continue.

Supporters of the bill on Tuesday referenced that call by the Court when detractors suggested that the games were unconstitutional. Morgan McGarvey (Democrat, Louisville) said that when Senators talk about something being constitutional or unconstitutional, such issues are decided by the state Supreme Court. The Senate Minority Floor Leader then noted that the court had asked state lawmakers to decide.

During Tuesday's Floor session, the legislation saw some critical "yea" votes from some Senators in districts without tracks and even from opponents of gambling. Sen. Phillip Wheeler (Republican, Pikeville) said his vote was not for gambling but rather for horse racing and the jobs tied to one of the commonwealth's signature industries.

Sen. Damon Thayer (Republican, Georgetown), always a supporter of Thoroughbred racing and breeding, noted the competition from other states that use money from added-gaming to benefit their racing and breeding. The Senate Floor Majority Leader also noted that HHR continues to not only benefit the state's general fund directly, but also through the many income taxes collected on jobs tied to the industry. And, he noted in a pitch to lawmakers concerned about gambling expansion, that with HHR in place—oddly enough—it's halted the calls for full casino gaming in the state.

Some of the Senators who voted in favor of the bill noted that they would like to see a larger percentage of HHR revenues committed to the state's general fund. Sen. Reginald Thomas (Democrat, Lexington) fell in that category, but noted "that is an argument for another day."

The Kentucky Equine Education Project (KEEP), Kentucky's equine economic advocate, applauded the Senate advancing the bill.

"Senator John Schickel and Senate President Robert Stivers have been instrumental in moving this legislation forward, and we thank them for their efforts. Now, we are calling on our elected officials in the House to bring SB 120 to passage so that historical horse racing can continue in the commonwealth, just as it has for the last decade," KEEP said in a statement. "The future of the horse industry and Kentucky's economy is in legislators' hands, and real jobs and livelihoods are at risk. 

"Tens of thousands of Kentuckians rely on the equine industry to make a living and provide for their families—many of whom have already sent messages and made calls to their legislators asking them to vote yes on this critical legislation. They are your neighbors, family members, colleagues, and friends. We hope that legislators will keep these individuals in mind as they discuss SB 120 in the coming days. A vote to keep historical horse racing in Kentucky is a vote for Kentucky families and the industry that supports them."