Debate on pari-mutuel wagering on historic horse races begins

Senators debated a bill March 6 and 7 that would authorize the state Racing Commission to license and regulate pari-mutuel wagering on historic horse races.

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

LB806, introduced by Omaha Sen. Scott Lautenbaugh, originally would have allowed instant racing terminals at licensed horse racing premises only with the approval of the county board where the licensed facility is located.

With the relocation of the state fair and closing of a horse racing venue in Lincoln, Lautenbaugh said, the horse racing industry has suffered statewide. Allowing terminals to feature historic races would generate revenue to build a new track in Lincoln, he said.

“It is impossible to overstate how important this would be to the industry and the importance to [creating jobs] in Nebraska,” Lautenbaugh said.

A Judiciary Committee amendment, adopted 25-19, eliminated the bill’s requirement for a county board to adopt a resolution before the Racing Commission may grant a historic horse racing license.

The amended bill would establish a Historic Horse Racing Distribution Fund comprising taxes collected from the races and licensing fees, which would be $1,000 per machine. Half of the fund’s proceeds would be credited to the Racing Commissions Cash Fund to be used by the commission for equitable treatment of equine species and the other half would be directed to the Compulsive Gambler’s Assistance Fund.

Proponents of the bill said it would create and maintain jobs in the state—many of which are agricultural jobs.

Omaha Sen. Jeremy Nordquist spoke in support of the bill.

“Because of the state fair being moved, [the industry] lost one of their largest markets,” Nordquist said. “If we do not move forward with this, we are turning our back on thousands of Nebraskans that have jobs associated with this industry.”

Fullerton Sen. Annette Dubas also supported the bill and said horse racing tracks are economic drivers for local communities.

“Businesses are told you must change with the times if you want to survive, and that is what the horse racing industry is trying to do [with these machines],” Dubas said. “This bill is a way to make them competitive with other gaming industries.”

But opponents argued that racing terminals are similar to slot machines and could be considered expanded gambling.

Imperial Sen. Mark Christensen said the argument that it would save horse racing is disingenuous. Society demands instant gratification, he said, and live horse racing is too slow to meet such demands.

“[The bill] will generate income and revenue and expand gambling, but it is not changing the reason the horse racing industry is [declining],” Christensen said. “They are not out to save horse racing with this bill; they are out to expand gambling.”

Ogallala Sen. Ken Schilz, a supporter of the bill, said the ongoing debate on expanded gambling has made horse racing less popular. Many families have made a living training and raising horses, Schilz said, and their livelihoods are being affected.

Omaha Sen. Beau McCoy introduced an amendment to the committee amendment that would eliminate half of the racing funds going to the equitable treatment of equine species and instead would direct it to the construction of a racetrack enclosure for horse races in a county which contains a city of the primary class. Lincoln is the state’s only city of the primary class.

McCoy said the amendment would provide the Lincoln venue with an opportunity to raise additional revenue to build a new racetrack without expanding gambling.

Lincoln Sen. Tony Fulton spoke in support of the amendment but opposed the original bill.

“If we are about saving the industry,” he said, “then this would be an amendment to adopt because building a racetrack in Lincoln would help support the industry.”

Additional amendments were filed by opponents in an attempt to filibuster LB806. Fulton offered a motion to indefinitely postpone the bill to allow senators more time to consider the debate and make a decision, he said.

The Legislature adjourned March 7 before taking further votes. McCoy’s amendment and 16 others are pending.