Page 82 - October 2015

Racing
Update
As most everyone in horse racing knows, Texas is surrounded by states with gaming. There are over 40 casinos, including more than half a dozen tracks with casino gaming, in
the neighboring states of Arkansas, Louisiana, Oklahoma and New Mexico. Texans stream into these out-of-state casinos, leave their money there, and return home to a state where declining purses and opportunities are forcing horsemen to take their horses elsewhere.
On the Friday morning of Sept. 25 prior to the opening of the second day of the Heritage Place Yearling Sale, a group of horsemen gathered at the Heritage sale ring to review and discuss the latest storm to hit racing in the Lone Star State, specifically Historical Racing (also known as Instant Racing).
Two years ago, the Texas Racing Commission (TRC) asked its legal counsel to give his opinion as to whether the commission had the legal authority to propose and adopt rules for Historical Racing Terminals (HRTs). Attorneys for Lone Star Park and Sam Houston Race Park also voiced their opinions, and all agreed that the TRC did have the legal author- ity to adopt rules for HRTs.
With the full support of the racing industry, the commission in August of 2014 adopted rules to allow historical wagering at the state’s horse and dog tracks.
Some legislators were outraged at what they considered an illegal expansion of gam- ing. During the last legislative session, which
by Richard Chamberlain
concluded June 1, Sen. Jane Nelson of Flower Mound stated that the state of Texas would not fund the Texas Racing Commission unless the commission repealed historical racing rules.
A Republican representing District 12, which includes portions of Denton and Tarrant coun- ties, Nelson is chairman of the Senate Finance Committee and is a member of the Legislative Budget Board.
That makes Nelson a very powerful oppo- nent. However, noted Rob Werstler, that does not necessarily make her an enemy to be hated. Werstler is the director of racing for the Texas Quarter Horse Association
“Contact your legislators,” Werstler urged
at the Heritage Place meeting. “Write, call or email your state representative, your state sena- tor, members of the Legislative Budget Board, and Lt. Gov. Dan Patrick to express your concern over the future funding of the Texas Racing Commission. Be polite – that’s how Texans do business. In a respectful way, ask for their support in fully funding the commission.”
State of the Lone Star
So where does that leave horsemen in Texas?
Prior to the August 2014 meeting in which the Texas Racing Commission approved histori- cal racing, every Republican state senator signed a letter urging the Texas Racing Commission
to NOT adopt the rules. It later was shown that the letter was largely written by a lobbying firm owned by Tilman Fertidda, a billionaire who
owns a Louisiana casino and who has written large checks to all of those senators.
It is estimated that, altogether in 2014, Fertidda and others from out of state, donated some $1.6 million to the political funds of Lt. Gov. Dan Patrick and senators Nelson, Joan Huffman, Kelly Hancock and Craig Estes.
Another individual receiving out-of-state fund- ing was Rep. Matt Krause of Arlington, who filed a suit against the commission that was thrown out of court. The Kickapoo Tribe, which operates a casino at Eagle Pass, and the Texas Bingo Association
then filed suit, and in November of 2014, a Texas district judge ruled that historical wagering was illegal because it did not have approval of the state legislature. Texas horsemen also lost their appeal, which was held in the same court.
The Texas legislature meets every two years. In the 2015 session, the House passed a budget including funding for the state racing commission while the Senate budget passed without TRC funding. A conference commit- tee then passed HB-1, the final budget with TRC funding. However, Sen. Nelson managed to insert a rider that required the commission to request $1.5 million for the appropriation period ($750,000 apiece for both years) from the Legislative Budget Board.
The Texas Racing Commission then proposed to repeal historical racing rules at their August meeting. With the entire racing industry urging them to uphold the rules, the commission voted not to repeal.
80 SPEEDHORSE, October 2015
texas horsemen met at Heritage place to face an uncertain future