Posted March 15th, 2010 5:58 am

Under even the optimistic projection of Kentucky State Senator Damon Thayer, his legislation which would generate only 5 % of the $100 million in additional purse funds that would come from legalizing slot machines at Kentucky’s racetracks. And the actual gross handle from his legislation would be a fraction of one percent compared to slots at tracks, which is wonderful news, if you happen to own an out of state casino, or if you happen to work for an out of state casino owner.

Thayer’s fig leaf does nothing to save Kentucky’s signature industry, but it does help by providing some ground cover to those who are so fiercely opposing the horse industry and who are so fiercely protecting casino bosses.

First, from the Blood-Horse report:

Legislation authorizing Instant Racing, a tax on advance deposit wagering, and a reduction in the pari-mutuel excise tax sailed through the Kentucky Senate Committee on State and Local Government March 11 and heads to the full Senate, where it’s expected to pass.
The bill, offered by Republican Sen. Damon Thayer, who chairs the committee, is a revision of legislation passed by the House of Representatives that dealt only with the ADW tax. Thayer’s bill passed on a vote of 11-1.
If the bill becomes law, it’s unclear how much revenue will be raised for the struggling horse industry in Kentucky. Proceeds won’t be anywhere close to the minimum of $100 million expected for purses from video lottery terminals or slot machines.
“This proposal will be of some help to the racing industry,” said Democratic Sen. Julian Carroll, who voted for the measure. “It will increase purses some, but 5% really won’t do us any good. We need to double purses to compete with Pennsylvania.
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Thayer has authored legislation calling for a constitutional amendment on racetrack VLTs, but he hasn’t yet brought the bill before his committee.

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Of course, the irony is that Thayer’s machines, while financially not being even a fraction of what is needed, would be indistinguishable visibly from the slot machines that he is opposed to. The sort of slot machines that would hurt the interest of out of state casino. That irony was pointed out by legislators in the Kentucky House, in an article which also highlights Thayer’s immaturity:

House leaders cast doubt Friday about the future of an expanded gambling bill that passed a Senate committee Thursday.
“I don’t know what we’re going to do with it,” House Speaker Pro Tem Larry Clark said of the proposal to allow at racetracks a type of electronic gambling commonly called “Instant Racing.” which lets bettors wager on random previously run horse races.
“The House leadership is going to talk to our caucus,” said Clark, D-Louisville. “But if we’re going to have expanded gambling, and the Senate is going to agree to that, then we ought to do slots which would really capture a lot of money. But right now we’re in no hurry to look at it.”
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Sen. Damon Thayer, R-Georgetown, and sponsor of the amended bill, said Friday that if the House tried to add video lottery terminals to the measure during negotiations to reconcile the two different versions of the bill, he would “walk out” of the conference committee.
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House Speaker Greg Stumbo, D-Prestonsburg, said he doubts the bill goes far enough to help the horse industry or the state’s anemic coffers.
“I think that (video lottery terminals) are better for the state and better for the industry,” Stumbo said.
Stumbo, who sponsored a bill to add slots under the state’s lottery laws, said he wanted to talk to constituents who are opposed to the expansion of gambling.
“Some of our members have requested that we seek some opinions from some of the lobbying groups that have traditionally opposed any type of expanded gambling to see whether or not they consider that to be expanded gaming,” Stumbo said. “If you put those two machines side by side, a slot machine and the machine that Sen. Thayer proposes, you can’t tell them apart.”
Say No To Casinos Spokesman Martin Cothran said his group believes mechanized gambling in any form is a threat to the long-term health of the horse industry.
He also questioned whether Instant Racing is really a “game of skill” as supporters claim. “Instant Racing requires about the same level of skill as it takes to select which slot machine you’re going to play,” Cothran said.
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