Historical Racing Poised to Soar Even Higher
Description:
Having surpassed the $1.1 billion wagering mark and coming off the best month since it was introduced in September 2011, historical racing in Kentucky is poised to soar as it enters the Lexington market within the next two months.
Patterned after the hugely successful Instant Racing concept developed at Oaklawn Park in Arkansas, historical race wagering features machines that are similar to slot machines in look and feel but use historical races to determine the outcome. They base payouts on a pari-mutuel formula.
Although the legality of the new form of gaming is being challenged in court, historical wagering has been such a success that it has has supplied money to purses and other equine programs and has been a big part of a resurgency within the Kentucky racing and breeding industries.
Historical racing machines began operating first at Kentucky Downs in Franklin, near the border with Tennessee and are at Ellis Park in Henderson. At the Kentucky Horse Racing Commission meeting Aug. 18, Kentucky Downs was given approval to install 275 new terminals, increasing its total to 775 machines.
Through July, $1.028 billion has been wagered on historical racing at Kentucky Downs and the $34 million through the machines in July was a record. From that, more than $9 million has gone to purses at Kentucky tracks and more than $11 million to various equine incentive and development funds, drug research, and equine industry programs. The state's General Fund has received $3.6 million from historical racing and a higher education fund has received more than $1 million.
Kentucky Downs will offer five days of racing from Sept. 5-19. The track will offer total purses and KTDF monies of more than $7.5 million.
Since Ellis Park began offering the new form of gaming in August 2012, more than $108 million has gone through the machines, generating even more money for purses, breeding funds, and the state.
With the two tracks located in the largest markets in the state—Churchill Downs in Louisville and Turfway Park in northern Kentucky near Cincinnati, Ohio—waiting until a court challenge has been fully adjudicated before plunging into the historical racing market, a partnership of Keeneland and The Red Mile will begin offering historical racing on more than 900 machines at the Lexington harness track.
Corey Johnsen, the Kentucky Downs president who had the foresight to see the potential for historical racing as a new revenue stream in a state where casino-type gaming could never get passed by the legislature as the industry experienced a downward spiral in line with the national economy, said he believes it has been a big asset.
"Three or four years ago there was not much optimism within the horse racing and breeding industry," Johnsen said Aug. 20. "I believe the additional revenue has helped change that outlook significantly. Three years ago state-breds from other states (with state-bred programs infused by alternative gaming revenues) were very popular and I believe that's turning.
"I think with the increase in purse money and in Kentucky Thoroughbred Development Fund money, people are going to see there is value in owning a Kentucky-bred. I see a lot of hope. Obviously the economy getting better is part of that. But I see a greater awareness of the value of a Kentucky-bred and I think historical racing has been part of that. There is reason for hope."
Johnsen said there is no doubt the 906 historical racing machines set to go online as part of The Red Mile-Keeneland partnership in early October will generate millions in revenues to the Kentucky racing and breeding industries.
"I am very familiar with the potential for the Lexington market and to see The Red Mile and Keeneland do such a first-class job, I know it is going to be successful and I know it is going to lead to millions of dollars for the industry," Johnsen said. "It is going to be a tremendous asset for Kentucky racing.
"I really believe the Standardbred industry in Kentucky is going to be revived by the development at the Red Mile."