Odds On Racing - Harness Racing

AG Says Slot-Like Racing Machines OK

January 7, 2010

A gambling game that looks like a slot machine, but is based on the outcome of randomly selected old horse races, is allowed by state law, the Kentucky attorney general’s office says.

But state racing rules would have to be rewritten to allow the Instant Racing game, currently offered only in Arkansas, according to the decision released Wednesday by Attorney General Jack Conway’s office.

Instant Racing allows patrons to bet on previously run races through common pools similar to the pari-mutuel wagering system used at thoroughbred tracks across the country.

Gamblers don’t know beforehand which race they’re betting on, and the game only takes seconds to play. After one play, another round can start immediately.

The games are not, however, considered as lucrative as slot machines, and the general manager of the Arkansas track with Instant Racing acknowledges that players are more comfortable with traditional slots.

Instant Racing machines at Oaklawn Park in Hot Springs, Ark., generated net revenues of about $25 million last year, according to general manager Eric Jackson. Gamblers got back 90 percent of what they bet — $225 million — and the state collected $2.5 million in taxes.

By comparison, a measure proposed last summer to allow video lottery terminals at seven locations operated by racetracks in Kentucky estimated net revenues of $800 million, with almost $200 million in tax revenue to the state.

“It does seem clear that Instant Racing will not produce as much revenue as video lottery terminals,” Gov. Steve Beshear said in a statement on Wednesday. “I continue to believe that video lottery terminals provide the best solution for our struggling signature industry.”