Bill would allow pari-mutuel wagering on historic horse races

A bill that would authorize the State Racing Commission to license and regulate pari-mutuel wagering on historic horse races was considered by the Judiciary Committee Jan. 25.

A historic horse race creates a pari-mutuel pool from wagers placed on a previously held race at a licensed racetrack.

Currently, the commission may not issue a license for historic horse race pari-mutuel wagering without approval from the county board where the licensed facility is located.

LB806, introduced by Omaha Sen. Scott Lautenbaugh, would allow instant racing terminals at licensed horse racing premises. Using such a device for pari-mutuel wagering outside of a licensed racetrack enclosure would be a Class III misdemeanor.

The bill also would impose a one-time licensing fee of $1,000 for each machine used for this purpose.

Lautenbaugh said a number of Nebraska businesses are dedicated to raising horses and that horse racing supports thousands of jobs in the state. The bill would be another way to support the industry, he said.

Greg Hosch, general manager of Omaha’s Horsemen’s Park, testified in support of the bill, saying the instant racing terminals could generate enough revenue to fund a new horse racing track in Lincoln.

“When the state fair relocated to Grand Island, I don’t think anyone thought of the effects [it would have] on the horse racing industry,” he said.

The contract for the venue’s current location—where the state fair previously was held—is almost expired, Hosch said. The industry cannot afford to lose the Lincoln market, he said, because without it racing cannot survive in Nebraska.

John Dittman, Gambling with the Good Life chairman and a bank owner, testified in opposition to the bill. When his customers’ income drops, Dittman said,10 to 20 percent of the time it is due to gambling problems.

“By expanding gambling, I firmly believe it will take us down the wide path that is a proven dead end for our state,” he said.

Nebraska State Racing Commissioner Dennis Lee provided neutral testimony.

The commission believes LB806 would be constitutional because wagers could be placed only within licensed tracks and the funds would be in a mutual pool, Lee said.

The committee took no immediate action on the bill.