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With the horse racing fixed-odds bill now only a signature away from becoming law in Louisiana, Churchill Downs is threatening a potential exit from Fair Grounds Race Course, one of the nation’s oldest racetracks.
HB 547 was filed by Rep. Chad Boyer, aiming to introduce fixed-odds wagering to horse racing in the state. This bill will modernize betting by allowing bettors to lock in their odds at the time of placing a wager, similar to how sports betting operates.
Currently, Louisiana uses a pari-mutuel wagering system, where odds fluctuate based on the total pool of bets until the race starts. This means you could place a bet at 4/1 and end up being paid 4/2 or shorter after it wins.
Should Gov. Jeff Landry sign HB 547 into law, Louisiana’s online sportsbooks, including major players like DraftKings and FanDuel, would be able to offer fixed-odds wagering for horse racing.
However, these sportsbooks will only be able to accept fixed-odds bets on out-of-state races under the federal Interstate Horseracing Act. They would need consent from the hosting track and the local Horsemen’s Benevolent and Protective Association to take bets on races run within Louisiana.
Bill Well Welcomed
The new bill was welcomed as a much-needed upgrade and received overwhelming support in the legislature. It passed the House by a unanimous vote of 98-0 and the Senate by a margin of 36-1. Notable figures in Louisiana’s horse racing community, such as former NFL quarterback Jake Delhomme, voiced their backing for the bill, stressing the need for the industry to adapt to evolving betting trends.
“Fixed-odds betting is already gaining traction in other states, [and] allows a wager to be locked in at the posted odds, much like sports betting,” said Boyer during a committee meeting in May. “By adopting this model, we not only offer a more competitive product to racing fans, but we also create a new revenue stream that will directly support our local racing associations through a dedicated purse supplemental fund.”
This fund, known as the “Fixed Odds Horse Wagering Purse Supplement Fund,” would receive 5% of the net proceeds from fixed-odds wagering. These funds would then be reinvested into Louisiana’s horse racing industry, enhancing prize money for races and supporting breeding initiatives aimed at sustaining the sport in the state.
Delhomme added, “We’re just trying to get our product, because we have an unbelievable product, on a national stage. It’s not an expansion of gaming; it’s just joining in on what’s going on throughout the United States.”
Churchill Downs Moves to Shut Down Fair Grounds
Despite massive support for the bill, Churchill Downs Inc. (CDI), a major player in Louisiana’s horse racing industry, is threatening to shut down Fair Grounds due to legal and legislative losses. The historic racetrack is known for events like the Louisiana Derby, which often features future Kentucky Derby contenders.
CDI’s concerns come from the recent passage of HB 547, which allows fixed-odds wagering, and a state Supreme Court ruling that invalidated the legal framework for historical horse racing (HHR) machines, an important revenue source for the track.
In a letter to the Louisiana State Racing Commission, CDI CEO Bill Carstanjen warned that the new legislation could undermine Fair Grounds’ ability to compete in the market. He stated, “House Bill 547 will shift wagering handle from current brick and mortar racetracks, OTBs, and advanced deposit wagering platforms, all of which provide revenues to track operators and local horsemen groups, to out-of-state bookmaking operators.”
As a result of these developments, CDI is reportedly preparing to give up its racing license for Fair Grounds, along with its permits for slot machines and video poker.
Carstanjen warned that closing one of the nation’s oldest racetracks would have significant effects on Louisiana’s horse racing industry and the New Orleans economy. He noted, “It will also have an immediate detrimental impact on the livelihoods of the hundreds of employees, local vendors, and community surrounding the Fair Grounds.”
According to local media, Stephen Landry, executive director of the Louisiana State Racing Commission (LSRC), has seen Carstanjen’s letter and stated that the matter will be addressed at the commission’s next meeting. A date for the meeting has yet to be set.
Louisiana will join West Virginia, New Jersey, and Colorado as the fourth state to legalize fixed-odds bets for horse racing.
Source: Next.io
