Saturday, February 22, 2014

Instant Racing tax being debated

The Kentucky Supreme Court ruled Thursday that the Kentucky Horse Racing Commission has the legal authority to regulate instant racing, but that the pari-mutuel tax, which applies only to "live" racing, cannot be used to collect state revenues from the games.
Without action by the legislature to reword the pari-mutuel tax law it appears the racetracks  will take the machine's profits tax free. A revision to the tax law will not only allow the machines to continue generating millions for the state but will also allow the machines to add money to the Kentucky Standardbred Development Fund (KSDF), which funds the Kentucky Sires Stakes. The KSDF is funded, in part, by a percentage of the pari-mutuel taxes collected on all money wagered on live races at the track for harness racing.

Thursday, February 20, 2014

KY Supreme Court rules Instant Racing legally implemented

The Kentucky Supreme Court on Thursday ruled that the Kentucky Horse Racing Commission "has the statutory authority to license and regulate the operation of pari-mutuel wagering on historic horse racing". However, "under the present statutory scheme for taxing the wagering handle on horse racing in Kentucky, the Department does not have the authority to collect the statutory excise tax on the wagering on historic horse races" and "whether the licensed operation of wagering on historic horse racing, pursuant to the Commission's authority, violates the gambling provisions of the Kentucky Penal Code is an issue that depends upon facts not in the record, and therefore, must be deferred pending further proceedings in the circuit court". 

Click here for the full opinion.

More to come….

Thursday, February 13, 2014

Instant Racing decision may be near

The Supreme Court of Kentucky is scheduled to release opinions on Thursday, February 20, 2014. Many have speculated that it will include the "Instant Racing" decision that horseman have been anxiously awaiting.