Sam Houston Race Park Puts Simulcasting On Hold

On the day Sam Houston Race Park intended to resume interstate simulcasting, the Houston racetrack took a step back and has put that plan on hold citing the need for a legal review of the "many complexities" surrounding recent court action and law amendments by Congress related to the Horseracing Integrity and Safety Authority.

"We have determined more time is needed to fully evaluate the many legal complexities surrounding recent court decisions and the HISA amendment enacted by Congress at the end of last year," said a statement released by Sam Houston Friday morning.

"While we are eager to export our signal across the country, our commitment to maintaining federal and state compliance remains our top priority," the statement continued. "We will export our signal across state lines when we are confident that it can be done in accordance with applicable laws and regulations. Until then, we will only broadcast our signal throughout Texas and to approved international locations but will not simulcast to any other locations in the United States. During this time, racing at Sam Houston Race Park will continue to be governed by the Texas Racing Act. We appreciate the continued support of the Texas Racing Commission and the Texas racing industry in working through the many complicated matters surrounding this issue."

The decision to resume simulcasting followed a Jan. 31 ruling by the Fifth Circuit Court of Appeals that denied a request by HISA and the Federal Trade Commission to reverse a decision that the HISA is facially unconstitutional. The appellate court had Nov. 18 reversed a decision of the U.S. District Court for the Northern District of Texas that had upheld the constitutionality of the HISA after it was challenged by the National Horsemen's Benevolent and Protective Association, multiple state HBPA affiliates, the State of Texas, and the Texas Horse Racing Commission. Since the initial Fifth Circuit ruling, Congress amended the language of the Horseracing Integrity and Safety Act to include "clarifying language" that shores up the FTC's oversight of HISA.

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Because of the Fifth Circuit court ruling and its decision to send the lawsuit back to the district court, the Texas Racing Commission took the position that HISA does not have authority over Texas racing.

"Effective February 1, 2023, all requests from Texas racetrack associations to export wagering signals will only be considered in a manner consistent with Texas law. All horse races in Texas will continue to be conducted in accordance with the Texas Racing Act and the Texas Rules of Racing," said a Feb. letter from TRC executive director Amy Cook. "The agency appreciates the opportunity to focus on working with our industry stakeholders to design the future of Texas racing."

"Now I'm grateful to have some legal backing to say it doesn't apply in Texas now, and we can allow our horsemen and tracks to export the signal," Cook said in a separate comment from her letter.

Dwight Berube, vice president and general manager at Sam Houston, had expressed relief at the potential to resume simulcasting, noting that betting on Sam Houston is down "probably 90% since last year, but that was understandable and exactly what we anticipated when we lost the export signal."