by Frank Angst

The elephant in the room of a Kentucky task force discussing the health of horse racing in the state was playing a slot machine.

While added gaming at Kentucky racetracks was not specifically mentioned at the first meeting of Governor Steve Beshear’s Task Force on the Future of Horse Racing, each task force subcommittee either documented the success such gaming has brought other racing states or expressed funding needs in Kentucky for improved regulation.

As chairman of the group’s subcommittee on industry financial matters, Keeneland Association President Nick Nicholson documented the challenges Kentucky racetracks and horsemen face from racing states that supplement purses with gaming revenue. Nicholson said Thoroughbred breeding has improved in states that supplement purses with gaming money, such as Louisiana and Pennsylvania,

Nicholson said the horse industry is the leading cash crop in Kentucky, has provided tourism dollars, and is a positive for the environment.

“In other states, this would be an industry you would seek out,” Nicholson said. “Sometimes we take for granted what we have.”

The other subcommittees outlined ideas that will require additional funding. Ellen Hesen offered a presentation on the staffing needs of the Kentucky Horse Racing Commission. Executive Director Lisa Underwood said the commission currently staffs 27 full-time employees but needs ten additional staff members. Hesen said the state would not provide money for those positions from the general fund.

Ned Bonnie, chairman of a committee on integrity and pari-mutuel issues, said the commission needs to fill a position overseeing the pari-mutuel pools. He said racetracks, through the Thoroughbred Racing and Protective Bureau, do a good job on integrity issues but the commission is required to oversee the pools.

Tracy Farmer, chairman of the task force, outlined another subcommittee’s efforts to study the addition of an equine drug-testing laboratory in the state. Farmer said the facility, equipment, and personnel would cost between $10-million and $15-million to start.

“We’re moving; we’re up and going,” Farmer said of the task force. Farmer is a prominent Thoroughbred owner who serves on the racing commission.

Formed in July, the task force was asked to study the economic soundness of the industry, the effectiveness and quality of drug testing, the oversight role of the Kentucky Horse Racing Commission, and the adequacy of state laws and regulations. Farmer said the current deadline for the task force is December 1.

Frank Angst is senior writer of Thoroughbred Times