Historic horse racing bill amended, re-advanced

A bill that would authorize the state Racing Commission to license and regulate pari-mutuel wagering on historic horse races was returned to select file April 2 for consideration of an amendment.

LB806, introduced by Omaha Sen. Scott Lautenbaugh, would allow instant racing terminals at licensed horse racing facilities in Nebraska to conduct historic horse races. A historic horse race creates a pari-mutuel pool from wagers placed on a previously held race at a licensed racetrack.

The bill also 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 support programs that facilitate equine therapy for youth and veterans and the other half would be directed to the Compulsive Gamblers Assistance Fund.

Under the bill as amended on select file, historic horse racing would end if it were found by a court to allow any additional Class III gaming as defined in the federal Indian Gaming Regulatory Act.

Authority to license and regulate historic horse racing also would terminate if specific criteria were not met within four years of continuous use of instant racing terminals, including:
• construction of a race track enclosure in a county that contains a city of the primary class;
• a 25 percent increase in purses compared to 2011; and
• a 30 percent increase in the number of live horse racing days at tracks with instant racing terminals in counties other than Douglas, or a 40 percent increase in Douglas County.

Senators agreed April 2 to return the bill from final reading for consideration of an amendment offered by Omaha Sen. Steve Lathrop.

The amendment, adopted 32-0, removed a provision in the bill relating to turnback of sales tax revenue from retailers located near a horse racing facility. Lathrop said the provision was written too broadly and that the state’s current turnback provisions should be retained.

Following adoption of the amendment, lawmakers re-advanced the bill to final reading by voice vote.