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Churchill Downs 'still evaluating' plans

don wilkins, messenger-inquirer, owensboro, ky.
·3 min read
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Apr. 1—With the legalization of sports betting by the Kentucky General Assembly, it opens the door for Churchill Downs to add a sportsbook venue to its proposed horse racing machine (HRM) facility at Towne Square Mall.

On Friday, Gov. Andy Beshear signed House Bill 551, the sports betting bill, passed by the legislature the previous day. HB 551 was sponsored by Michael Meredith, an Oakland Republican.

The Messenger-Inquirer reached out to Churchill Downs on Friday about whether its plans for the Owensboro facility will be altered to accommodate sports gambling.

"As for our newest proposed HRM property that we have publicly discussed locating in the Owensboro area, we are still evaluating locations that meet our requirements," said Churchill Downs in a prepared statement. "This venue when completed promises to be a premier entertainment destination that will be the only sports wagering facility in the surrounding area on the Kentucky side of the Ohio River."

Mayor Tom Watson said he has been in contact with Churchill Downs officials, but not about the sports gambling bill.

Most recently, Watson said it was about the company seeking an exemption to allow smoking in its proposed Owensboro gaming facility.

On March 21, the Owensboro City Commission decided to indefinitely table the smoking ordinance at the gaming facility after receiving push back from nonsmoking advocates such as the American Lung Association and the Green River District Health Department.

But with the sports gaming bill passing, Watson said he expects to hear from Churchill Downs about whether or not it will add a sportsbook at the mall location.

Watson said the sports gaming bill made sense when neighboring states such as Indiana and Tennessee already allowed it.

"It's not unlike the casinos; Kentucky didn't want to do them because of the racing industry, so they just lined them all up on the Ohio River," Watson said. "It seems like we're always one step behind."

Under HB 551, sports betting would be taxed 9.75% at horse racing facilities and 14.25% online.

And according to the bill, sports betting will be regulated by the Kentucky Horse Racing Commission (KHC).

A fiscal note to the bill provided by the Legislative Research Commission said, "(KHC) has demonstrated a long and successful history of regulating wagering."

The bill is projected to bring in almost $23 million per year once fully implemented.

Until five years ago, sports gambling was limited to Nevada because of the Professional and Amateur Sports Protection Act (PASPA).

But in 2018, the U.S. Supreme Court ruled PASPA unconstitutional in its Murphy v. National Collegiate Athletic Association decision.

Prior to legalization, it was estimated that $150 billion in illegal wagers were made from professional and amateur sports, according to Forbes.

Now Kentucky will become the 25th state, along with the District of Columbia, to allow both online and in-person sports gambling.

Through its TwinSpires app, Churchill Downs had an online sports betting presence, but it announced in February 2022 that it was moving away from online sports betting because of a "highly competitive market," according to legalsportsreport.com.

Last year, Churchill Downs expanded its in-person gaming assets by purchasing Henderson-based Ellis Park, which also included the anticipated Owensboro gaming location.

In September 2022, the Kentucky Horse Racing Commission unanimously approved Churchill Downs' application to assume control of Ellis Park in a $79 million cash deal.

The original plan for the Owensboro gaming facility was to feature at least 600 historical racing machines, a simulcast waging center and multiple food and beverage offerings.

"Churchill Downs Incorporated is excited to bring our experience operating brick and mortar sports wagering venues to our home state of Kentucky. All of our HRM facilities throughout the state were designed with this possibility in mind and will be ready to offer sports betting under the regulations and timing of the Kentucky Horse Racing Commission," the company said in a statement.