Two Kentucky state legislators have introduced a bill that would allow for fixed-odds wagering on horse races by residents of the state.
This is the first time that a bill that would legalize fixed-odds betting on horse racing has been introduced to the Kentucky legislature. Fixed-odds betting, which is the dominant form of horse wagering in some European countries, would allow bettors to obtain a set price on a horse that does not change in the lead-up to the race. Currently, only parimutuel wagering on horse racing is legal in Kentucky.
Fixed-odds betting is supported by some in racing as a way to diversify the wagering menu in an age in which fixed-odds betting on other sports has rapidly gained a foothold across the U.S. Supporters also believe it would address dissatisfaction among many horseplayers with late odds changes, which have been exacerbated over the last two decades by the growth of computer-assisted wagering and mobile betting. These dynamics have eliminated the need for bettors to stand in line to place a wager and allowed players to wait until the final moments before a race to place their bets.
Rep. Matt Koch, a Republican from Paris who is one of the sponsors of the bill, was said to be unavailable for comment on Friday. He told The Blood-Horse in an article posted on Thursday that the bill would put fixed-odds betting in the “hands of the tracks to test the waters.”
"As the gambling market continues to expand, we're exploring ways to give tracks the flexibility to introduce new and engaging products,” Koch said.
Fixed-odds betting on horse racing is currently being offered in two states, New Jersey and Colorado, and is legal in a third, West Virginia. Enthusiasm so far among U.S. bettors for the bet type has been far below the expectations of supporters, but many advocates for fixed-odds betting believe that the market is being hindered by a lack of liquidity and a limited menu of tracks.
Efforts to get broader buy-in from the racing industry on legislative efforts has been stymied by concern from many horsemen’s groups that fixed-odds betting will cannibalize existing handle and lead to lower revenues for purses and racetrack operations. The margins for fixed-odds betting are generally lower and less predictable than parimutuel wagering.
Alex Foley, the executive director of the Kentucky Horsemen’s Benevolent and Protective Association, did not respond to a request for comment on Friday.
The bill introduced to the Kentucky House would require licensed racetracks to set aside 15 percent of the “adjusted gross revenue” of fixed-odds bets for a purse fund. The bill does not further define the term “adjusted gross revenue.”
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