Kentucky Racing Commission nears final decision on new track license

For more than a year now, the Kentucky Horse Racing Commission has known of a significant and sincere interest in building a new racetrack — along with a parlor for Historical Racing Machines — in Oak Grove, Ky. Now, it appears that the industry’s ruling body may be ready to make a final decision.

According to sources close to the situation, the Kentucky Horse Racing Commission, headed by Chairman Franklin Kling, will call its next meeting within 10 days or less to discuss and take a final vote on the three applications that have been filed to construct, own and operate a new Standardbred facility in the Southwest Kentucky city near the Fort Campbell military installation.

The Commission met last on Tuesday, Oct. 30, and heard testimony from the three applicants that had submitted applications. That meeting lasted more than five hours, and at the end of discussions,  a number of the commissioners were ready to take a vote.

But after several motions and considerations were offered, the Commission finally decided to postpone a final vote until sometime in November. At that time, Kling asked that each of the three applicants to provide additional data and information on questions that had been posed during the marathon hearing.

That additional information — to answer only Commissioner inquiries — was sent and received last week.

Now, the Commission is apparently prepared to convene again within the next seven to 10 days to further discuss which application — if any — will be granted.

The three applications under consideration are from:

• A new venture created by Keeneland and Churchill Downs. The new venture submitted its application well over a year ago, and it sat idly on the desk — apparently collecting nothing but dust — until the new entity submitted dates to conduct live Standardbred racing beginning in 2019. According to existing state statutes that govern horse racing in Kentucky, the Racing Commission was obliged then to rule on the dates request before Nov. 1. Thus, that was the reason for the Oct. 30 meeting of the Commission. The new venture has proposed to spend up to $150 million on a new facility in Oak Grove. Currently, Keeneland conducts two live Thoroughbred race meets — one in April and another in October. Churchill Downs, currently, conducts a meet from May through June; another one in September; and a third in November.

• Caesar’s Racing & Entertainment, which formerly owned Turfway Park in Northern Kentucky and currently holds a license to conduct Standardbred racing in Paducah, Ky., at Bluegrass Downs. About a year ago, the Kentucky Horse Racing Commission ordered Caesar’s to make certain improvements and changes in order for it to maintain its’ license to operate. At the Oct. 30 meeting, Caesar’s announced plans to spend more than $150 million to construct a new racing complex and entertainment destination in Oak Grove. When asked about Bluegrass Downs, though, Caesar’s representatives announced that the company had no plans to either expand or improve that current property, and that they had no interest in either expanding that current operation at Bluegrass Downs to offer Historical Racing Machines.

• Kentucky Downs, which owns a Thoroughbred racetrack and Historical Racing venue in Franklin, Ky, less than an hour's drive North of Nashville. Kentucky Downs was the first track in Kentucky to venture into the Historical Racing Machine market, and was the track to defend the operation as pari-mutuel in a lawsuit that was brought by the Family Foundation. Just a couple of weeks ago, Judge Thomas Wingate ruled — again — that the machines were legal and permitted under current Kentucky Statutes. At the Oct. 30 meeting of the Commission, Kentucky Downs submitted a much more modest, $50 million proposal which would also include a location for Historical Racing Machines.

Now, apparently, the Commission is finally poised to make a final ruling and decision. Word of the upcoming meeting spread around the sales grounds at Keeneland, where the November Breeding Stock Sale is underway.

And, according to multiple sources close to the situation, official news announcing the exact date and time of the next Commission meeting should be revealed sometime in the next couple of days.

Hold onto your seats. Like Kentucky weather, this could change quickly, too.