After being shut down for the day Sept. 1 amid legislative disputes over historical racing machines, simulcast wagering is back online at the Sam Houston Race Park in Cy-Fair.
The Texas Racing Commission shut down simulcast wagering and live racing at all Texas horse racing parks after legislators withheld commission funding. However, a temporary agreement reached Sept. 2 provided funding for at least 90 days.
“We are glad to see our ability to operate our business restored,” Sam Houston Race Park President Andrea Young said in a statement. “However, we remain extremely concerned with both the process and the extremely short period of funding. Like any business, we need to be able to plan further out than three months.”
Sam Houston Race Park spokesperson Mike Levigne said the effects of a potential shutdown would be widespread and immediate.
“There are about 250 jobs at stake just among people who work at the track,” he said. “That doesn’t include the trainers, veterinarians and the ancillary businesses that are in play. The impact gets to be really personal really fast.”
The move would also have devastating effects statewide, said Rob Werstler, racing director with the Texas Quarter Horse Association. During the brief shutdown Sept. 1, horsemen at Lone Star Park in Grand Prairie and Retama Park in San Antonio—both of which host live racing throughout the fall—were left in a state of confusion.
Even for the Sam Houston Race Park, which does not host live races until January, the cost of a potential shutdown is steep, Werstler said.
“Having their simulcasting shut down means they are not generating purses for when their races do start up,” he said.
As of press time, it is unclear whether the Texas Racing Commission will continue to receive funding after the 90-day period.
Historical racing
The conflict between the TRC and Texas lawmakers revolves around the commission’s approval of historical racing machines. Similar in appearance to slot machines, historical racing machines allow players to bet on past races without any information on the horse names and race dates. To date, no Texas racetracks have installed any historical racing devices.
The TRC board first passed the rule change allowing historical racing machines in August 2014, drawing criticism from Senate budget writers who said the commission did not have authority to implement the change. TRC declined to outlaw historical racing machines in late August, 2015, leading legislators to make good on their threat to take away funding.
The Legislature appropriated $15.4 million for the TRC in the budget passed in the 2015 session, but made the $1.5 million set aside for administrative funds subject to Legislative Budget Board approval. The board, co-chaired by Lt. Gov. Dan Patrick, did not approve the administrative funds but said the TRC could transfer budget funds to cover administrative costs.
However, late Sept. 1 the Legislative Budget Board agreed to a deal to finance the TRC for the next three months.
“Any disagreement with the commission that resulted in this stalemate was never about ending horse and dog racing in Texas,” Patrick said in a written statement. “Instead, it was about making sure the appointed commissioners follow the law as directed by the Legislature and a state district judge.”
State Sen. Jane Nelson, R-Flower Mound, who serves as chair of the Senate Finance Committee, said the three-month period gives the commission time to reconsider its course in regard to historical racing.
State Rep. Allen Fletcher, R-Cypress, said he thinks it should be settled in the courts or the Legislature.
“I don’t want to see [TRC] defunded only to have a court later decide historical racing is legal,” he said. “The money has already been approved in the budget. I don’t like going back on our financial commitments without a court ruling or legislative decision.”
Before TRC funding was restored, SHRP officials were calling on the Legislative Budget Board to host a public meeting during which members vote on the issue. In a press statement, Young said the decision on TRC funding should not be left to Patrick and Nelson alone.
“This industry needs to be funded and two people from one chamber should not get to eliminate 36,000 Texas jobs without an official meeting,” she said. “The full Legislative Budget Board should meet and decide the fate of Texas racing in full daylight, not through shady backroom deals and secret phone calls under cover of darkness.”
