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Thoroughbred Times

Posted: Wednesday, May 14, 2008 6:24 PM

Churchill Downs Inc. files suit against Kentucky horsemen’s groups


Churchill Downs Inc., Churchill Downs Technology Initiatives Co., and Calder Race Course Inc. filed suit on Wednesday against the Kentucky Horsemen’s Benevolent and Protective Association, the Kentucky Thoroughbred Association, and the officers of each organization in the United States District Court for the Western District of Kentucky. 

The suit amends the lawsuit filed on April 24 against the Thoroughbred Horsemen’s Group, the Florida Horsemen’s Benevolent and Protective Association, and the officers of each of those organizations over their refusal to approve the distribution of Calder Race Course races to out-of-state off-track betting sites.

The suit alleges violations under the Sherman Antitrust Act and is a result of those groups’ refusal to approve the distribution of Churchill Downs races to national advance deposit wagering companies and Calder, according to a press release from Churchill Downs Inc. 

Kentucky horsemen and their negotiating agent, the THG, want an increased percentage of ADW revenue for the Churchill Downs signal. The THG, which also is negotiating in several other states, including Florida and Texas, wants horsemen to receive 33% of ADW revenue.

The suit requests that the defendants be prevented from boycotting racetracks and ADW operators that do not comply with their demands, which include uniform terms for the pricing of racing signals.

“It is in the best interest of our racetrack, our horsemen, and certainly our customers for the Churchill Downs signal to be made available to racing fans throughout the country,” said Steve Sexton, executive vice president of Churchill Downs Inc. 

“Unfortunately, our negotiations with Kentucky horsemen have not advanced.  We still have not heard from them what they are looking for, other than to be pointed to representatives in Ohio.

“The KHBPA and KTA continue to block the Churchill Downs signal from being offered to national ADW platforms and Calder, despite the fact that since our entry into the ADW business last year we have nearly doubled host fees paid by ADW businesses to our racetracks and horsemen partners.”

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