The racing industry in Louisiana sustained a significant hit after a Supreme Court decision recently recognized as unconstitutional a law that legalized historical horse racing (HHR) machines. The state’s Supreme Court deemed the legislation unconstitutional, considering it legalized the aforementioned gaming machines without prior approval from voters.
Act 437 Declared Unconstitutional in Louisiana
The decision was announced late last week, and it follows lawsuits filed against owners of racetracks that offer HHR machines. The controversial law that allowed HHR machines dates back to 2021. At the time, lawmakers passed Act 437, which effectively included HHR devices as a form of pari-mutuel wagering.
Considering that pari-mutuel wagering has long been legal under the state laws, the landmark decision paved the way for the HHR machines expansion. Unlike lawmakers who agreed that HHR devices can be regulated as a form of pari-mutuel wagering by the Louisiana Racing Commission, the state’s Supreme Court disagreed, recognizing Act 437 unconstitutional without the approval of voters.
The ruling was handed over by Justice Jeanette Theriot Knoll and may have an immediate impact on the racing industry in Louisiana. The Louisiana Supreme Court’s decision is based on a 1996 state constitutional amendment that requires any new form of gaming in a parish to receive approval from voters in that parish via a public referendum. It’s the Supreme Court’s view that HHR machines are a new form of gambling rather than one that falls under pari-mutuel regulation.
The decision is going to affect four racetracks with the list including Louisiana Downs, Evangeline Downs, Delta Downs and Fair Grounds. The owners of all aforementioned tracks were named defendants in the lawsuit that picked significant speed only recently. It is unclear if any of the racetracks would seek to maintain the status quo through legal means or would rather push for a referendum that may approve HHR machines, as required by law.
Churchill Downs Is Disappointed with the Recent Ruling
A spokesperson for Churchill Downs, recently quoted by Blood Horse, revealed that the company is disappointed with the recent ruling. Churchill Downs’ representative explained that after the passage of Act 437, operators were authorized to offer HHR machines.
“We are disappointed with the recent ruling from the Louisiana Supreme Court declaring Act No. 437 unconstitutional. When passed in 2021, Act No. 437 provided a critical framework that authorized historical horse racing as pari-mutuel wagering,“
explained a spokesperson for Churchill Downs
Consequently, they made significant investments that ultimately helped create new jobs and benefited local communities. “This recent court ruling directly and adversely negates this progress. The impact of this decision reverberates throughout the Louisiana Thoroughbred racing community with immediate consequences,” the representative added. According to Churchill Downs’ spokesperson, the Louisiana Supreme Court’s decision is going to have an immediate impact.
