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Instant Racing provides sign of hope in Kentucky

Posted: Friday, March 12, 2010 11:37 AM

by Frank Angst and Jeff Lowe

Instant Racing could provide a compromise for Kentucky lawmakers as state racetracks look to add gambling options to compete with neighboring states.

A bill to allow Instant Racing at Kentucky racetracks passed out of a committee on Thursday. The Senate will vote on it next week with approval expected

“I think it has considerable support,” Senate President David Williams (R-Burkesville) told the Lexington Herald-Leader.

Senator Damon Thayer (R-Georgetown) crafted the legislation to allow the machines, which show historic races and have been ruled to be a form of pari-mutuel wagering in Arkansas. The bill would allocate 1.5% of Instant Racing proceeds to the Kentucky Thoroughbred Development Fund or Kentucky Standardbred Development Fund for purse supplements.

“I do think it will provide some help and a great deal of hope for the horse industry,” said Thayer, chairman of the Senate State and Local Government Committee, which approved the bill on an 11-1 vote.

Last year, Instant Racing at Oaklawn Park generated about $1.9-million for purses.

Kentucky racetracks and horsemen have been focused on gaining legislative approval to expand gaming, which racetracks in nearby states such as Indiana, Pennsylvania, and West Virginia have already done. A slot machine measure is pending in Ohio.

Kentucky Republicans favor putting expanded gambling issues, such as adding slot machines, before state voters. Thayer said his research indicates more than 80% of Republicans favor voting on a constitutional amendment to expand gambling as opposed to having the General Assembly implement it. But they might be willing to approve Instant Racing, without first conducting a statewide vote.

During the current session in the Kentucky House, Representative Harry Moberly Jr. (D-Richmond) has proposed a bill that would allow Instant Racing and games of skill. Games of skill are similar to slot machines but include some decision-making on the part of the player.

Last year, the Kentucky House passed a bill that would allow video lottery terminals at racetracks, but it failed to advance out of committee in the Republican-controlled Senate.

Thayer’s bill also implements a 1.5% tax on account-wagering bets on Kentucky wagers, which he said could generate $1.2-million, and institutes a single tax rate of 1.5% on live handle in Kentucky. Churchill Downs and Keeneland Race Course currently are in a top tier that is subject to a 3.5% tax rate.

Frank Angst is senior writer for Thoroughbred Times; Jeff Lowe is staff writer for Thoroughbred Times