LOUISVILLE, Ky. (WDRB) – Calling the potential consequences “crucial and wide-ranging,” the Kentucky Horse Racing Commission is considering asking the state Supreme Court to revisit its surprise ruling that the slot-like gaming system in place at three of the state’s six historical horse racing venues does not constitute pari-mutuel wagering.
The horse racing commission, whose members are appointed by Kentucky’s governor, asked the high court last week to give it an additional two weeks to work on a potential request for a “rehearing” of the case and the 7-0 decision handed down Sept. 24.
“Due to the technical nature of the facts, the KHRC will likely need to consult with its witnesses—in addition to completing its voluminous document review— in order to confirm that the Court has not missed any items of material consequence,” the commission said in the filing.
The court’s decision raises the prospect that Kentucky lawmakers will have to act to ensure an industry that mimics slot gaming and generates more than $2 billion a year is allowed to continue. Pari-mutuel wagering, in which players bet against each as in live horse racing, is legal in Kentucky. Casino gambling is constitutionally prohibited.
The horse racing commission didn’t spell out “the far-ranging prospects raised by” the court’s ruling, but said it’s “hardly a secret” that Kentucky’s entire horse racing industry “depends heavily on the viability of historical horse racing.”
The profits from the slot-like gaming have generated millions of dollars in taxes that are directed to the horse racing industry -- money that is used to supplement purses available winners at live races, keeping more racing in the state.
“Thus, this Court’s decision directly impacts approximately 80,000 jobs and may significantly reduce horse racing’s $3.4 billion contribution to Kentucky’s economy,” the commission said.
The commission declined to answer a number of questions posed by WDRB, including whether it plans to take any regulatory actions in response to the ruling.
The agency has allowed the venues that run the Exacta Systems gaming platform, which was the focus of the court case, to keep operating even as the court found the platform doesn’t constitute pari-mutuel wagering.
“The Kentucky Horse Racing Commission respects the Kentucky Supreme Court’s decision. The Commission is considering its options and will take action as soon as we come to an appropriate resolution,” the agency said in a statement to WDRB.
Sherelle Roberts-Pierre, a spokesperson for the Kentucky Public Protection Cabinet, said the statement would be agency’s only comment “at this time.”
