Pari-mutuel wagering on historic horse races approved

Senators passed a bill April 5 that authorizes the state Racing Commission to license and regulate pari-mutuel wagering on historic horse races.

An historic horse race creates a pari-mutuel pool via instant racing terminals from wagers placed on a previously held race at a licensed racetrack.

LB806, introduced by Omaha Sen. Scott Lautenbaugh, establishes 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 will be credited to the Racing Commissions Cash Fund to be used for programs that facilitate equine therapy for youth and veterans and the other half will be directed to the Compulsive Gambler’s Assistance Fund.

Under the bill, historic horse racing will end if it is 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 will terminate if specific criteria are 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.

The bill passed 26-18, one vote more than required for passage.