Louisville, KY - Churchill Downs Inc. (CDI) has decided to take matters into their own hands when it comes to slot machines in Kentucky. Rather than waiting for traditional slots to be legalized, the horse racing and casino gaming operator has opted to incorporate ‘instant racing’ machines.
CDI plans to construct a new facility at its old Trackside training location that will hold up to 600 ‘instant racing’ machines. The Kentucky Horse Racing Commission has already provided the necessary signatures for the operator to start building the venue that is estimated to cost between $50 million and $60 million. Limited space at their Churchill Downs location prompted the need for the custom-built facility that will be 85,000 square feet.
What Is Instant Racing?
Instant racing, also called historical race wagering, is a type of electronic machine that allows horse enthusiasts to bet on horse races that have already occurred. All information that would reveal identifying details of the race are hidden, and patrons are instead provided with limited profiles of the horses, jockeys, etc. to decide on the horse(s) they would like to wager on. The gambling system is similar to a traditional slot machine, specifically when it comes to the element of chance.
Historical Racing Around Kentucky
Interestingly enough, though CDI is just getting onboard with historical racing machines, instant racing is nothing new to the state of Kentucky. Judge Thomas Wingate ruled back in December 2010 that K.Y. statutes permitted residents to place bets on instant racing machines. The main reason that CDI opted not to offer instant racing sooner is because the operator believed that real slot machines would be legalized sooner than later. This has not been the case, as legislators in the Bluegrass State have given no indication that gaming expansion will be a priority in the upcoming session.
In the weeks before CDI’s new facility was announced, there were already 1,724 instant racing machines scoured around the state. The historical racing machines at Ellis Park, the Red Mile and Keeneland, and Kentucky Downs brought in more than $88 million in bets in May 2017.
Instant Racing Revenue
In Kentucky’s current fiscal year through the end of May, instant racing brought in nearly $839 million with about $53 million going to the racetracks. There has been $5.4 million for the Thoroughbred purses and almost $4.7 million produced for the Kentucky General Fund.
Historical racing is expected to increase CDI’s overall revenue, which land-based horse racing betting contributes to the least. As indicated in the company’s first quarter earnings report, race betting revenue came in at $26.1 million, casinos brought in $35.5 million, online betting generated $52.3 million, and social gaming racked in $112 million.
With the new machines- which are expected to debut summer 2018 - CDI will able be able to create a new revenue stream while simultaneously releasing pressure on on-track horse racing betting income. Over in Florence, Turfway Park has been also been approved for instant racing machines though they are not yet operational for Kentucky sports betting.