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Thursday, December 10, 2009

Horse Industry At A Loss After Election.

Horse industry at a loss after election
By Janet Patton and Beth Musgrave

Kentucky's horse industry, which bet heavily on a Democratic win in Tuesday's special state Senate election, wasn't prepared for defeat and doesn't have a short-term plan to advance legislation that would allow slots at racetracks, industry leaders say.

"We didn't plan on losing, so we don't have a strategy other than we want to attempt to continue to have our voices heard," said Ric Waldman, a bloodstock consultant who is one of the directors of the issues group Keep Our Jobs in Kentucky Inc.

The horse industry group spent hundreds of thousand of dollars on advertising that opposed Republican Jimmy Higdon and supported Democrat Jodie Haydon. Haydon's election had been seen as critical to the horse industry's efforts to get casino-style gambling, but he lost by a wide margin.

On Wednesday, Senate Majority Leader Robert Stivers, R-Manchester, said the fate of expanded gambling is in the hands of Democratic Gov. Steve Beshear.

Stivers said the horse industry has spent a lot of money trying to change the political power structure in the Senate. After two very expensive elections, the Republicans remain in power by a 20-17 margin, with one independent who generally sides with Republicans.

"If they spent the $1.9 million that we've heard that they've spent, I feel that they were not very good at spending their money," Stivers said. "Maybe they are not in as bad a shape as they claim to be if they can spend basically $2 million on an election."

The non-profit Keep Our Jobs in Kentucky Inc. does not have to disclose its donors or expenses until it files a tax return early next year.

Beshear, in a statement, said he continues to support electronic slot machine legislation, but he did not say whether a specific bill will be forthcoming.

"All options are on the table, and helping the horse industry survive is a top priority, but we are still developing our legislative strategy for next year," Beshear said.

House Speaker Greg Stumbo, who sponsored a slots bill in a special legislative session this summer that died in a Senate committee, said he thinks the 2010 elections will be pivotal.

But he doesn't see taking up slots legislation again unless the full Senate can vote on the issue.

"Until things change over in the Senate, I don't see why the House would want to consider it," said Stumbo, D-Prestonsburg.

Based on voter interest, "I still hold some hope out that the Senate leadership will change its mind. ... With the full election cycle coming up, they might want to put this issue behind them, one way or the other," he said.

With Higdon's election, there appears little prospect of toppling Senate President David Williams, R-Burkesville, who opposes any move to expand gambling, before the November elections.

The odds of getting a slots bill through the coming session of the General Assembly appear exceedingly long with Williams in power, said Bill Farish of Lane's End Farm. Instead, he said industry leaders will focus on next year, especially on recruiting Republican candidates who support slots.

Farish, a Republican who has been a vocal critic of Williams, said Tuesday's election "absolutely" is a setback for the horse industry. "It's very, very hard to move the ball right now" on expanded gambling, he said. "We have no choice but to keep trying."

Horse breeders and racetracks have said they need help now, but Wednesday they weren't able to offer any new alternatives.

They have rejected the only bill currently filed, a proposed constitutional amendment by Sen. Damon Thayer, R-Georgetown, as "too little too late."

Jay Blanton, spokesman for Keeneland, said sentiment on a constitutional amendment, which must win approval from voters, has not changed. "It doesn't provide the kind of immediate, near-term relief the industry needs," Blanton said.

"We still prefer the statutory approach," said John Asher, Churchill Downs spokesman, referring to Stumbo's bill, which didn't require a constitutional amendment.

"We look forward to educating lawmakers about the reality of the crisis that faces Kentucky's signature industry," Asher said. "The industry's certainly open to talking with lawmakers and seeing what their ideas are. What those might be, I couldn't say at this point."

Stivers said Senate Republicans are interested in finding solutions to help the ailing horse industry. And they are willing to work with Beshear — despite his attempts to thin Republican ranks in the Senate — to find those solutions, Stivers said.

"The majority of the members of the General Assembly want to make sure the horse industry stays strong as it does provide a lot of jobs," Stivers said.

Beshear on Wednesday said a constitutional amendment would be a significant delay.

"This is simply another stalling tactic that will cost our state jobs and revenue," he said. "Senator Thayer's bill would require two layers of delays — one statewide vote on the amendment, and then if that passes, a series of second votes among the counties pursing expanded gaming. It's time we can't afford to waste."

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