Out-of-State Wagering on Lone Star to Suspend July 1

Following through on a previously issued memorandum defying compliance with the Horseracing Integrity and Safety Authority, Lone Star Park has been denied approval to export its racing signal out-of-state beginning July 1, Texas Racing Commission executive director Amy Cook confirmed June 15.

HISA is scheduled to take effect at the start of next month, although implementation of medication rules and enforcement will be delayed pending either adoption or rejection of the rules by the Federal Trade Commission after a public comment period.

The Lone Star Park Thoroughbred season concludes July 17.

The TRC has previously indicated the action is based on the commission's perception of a conflict among the requirements and mandates of HISA, the Interstate Horse Racing Act of 1978, the Texas Racing Act, and the Texas Rules of Racing.

Cook said Lone Star and the horsemen's group in Texas support the decision, despite the track certain to experience a sizable loss in handle over the final weeks of its meet. Wagering on Lone Star from out-of-state comprises much of the track's overall betting, though, like other tracks, Lone Star retains a smaller percentage of revenue from each off-out-state bet relative to a similar one made on-track.

Off-track betting and advance-deposit wagering are not permitted in Texas. Wagering between tracks in the state is permitted.

"The impact is Lone Star Park loses revenue, the Texas Horsemen's Partnership loses revenue, the state of Texas loses revenue—I told the state comptroller—and the Texas Racing Commission takes a hit because a portion of (handle) funds our agency," Cook said. "So we all lose some money, but we all gain certainty, and you can't put a price on that is kind of our position."

Signal imports for on-track simulcasting will be maintained, Cook said

Cook said groups in the state met earlier this month after HISA representatives visited Texas, saying, "Everybody is in fear and the uncertainty is palpable." She questioned the readiness of HISA to provide federal oversight in a couple of weeks, proposing implementation be delayed until Jan. 1, 2024.

"I think if they go out on the starting gate on July 1 and they can't do it, they'll never recover from that," Cook said. "You don't get a second chance to make a first impression."

The Texas commission claims its state laws require it to be involved in the regulation of all aspects of racing and wagering at Texas racetracks.

"HISA has been negotiating in good faith with the Texas Racing Commission and has made every effort to reach a resolution with the commission to help racing flourish in Texas," read a HISA statement. "We hold out hope that we will still find a way to work together and chart a positive path forward for racing in Texas, so that Texas racing participants are not deprived of the benefits that come from interstate wagering on Texas races."

Separate constitutional challenges to HISA, backed by the TRC, filed in federal courts in Texas and Kentucky were denied in late March and early June. Both decisions are under appeal.

Cook said approximately a year and a half would be necessary to amend Texas rules to allow to update its rules and have them mesh with HISA.

"We're going to rewrite the rules of racing in Texas," she said. "We don't even have in the rules of racing a safety and health chapter, which I'm dismayed by. So we're going to take some of the good ideas from HISA and make or exceed those standards."