In its most recent report, the Kentucky Horse Racing Commission revealed that Kentucky’s version of slot machines saw a sizable increase.
The KHRC’s released its February Historical Horse Racing report during its latest meeting at the end of February. The report showed a more than 20% growth in handle year-over-year.
Kentucky gambling options aren’t numerous in its current legal landscape. Aside from the Kentucky horse racing industry, there is really only a lottery and the HHR machines to bet on.
In its April 18 public hearing, the KHRC reported that February’s HHR handle was $693 million. That figure represents a 20.4% increase from the $574 million during the same month last year.
New gambling facility appears to be cause for handle increase
The Kentucky Downs’ Mint Gaming Hall is a large reason HHR handle rose so sharply. The new venue in Williamsburg handled $86 million worth of HHR bets.
Additional new betting activity can be attributed to renovations at Turfway Park in Florence.
The popularity of historical horse racing in the state remains at unprecedented levels. Kentucky’s fiscal-year HHR handle through February is now more than $5.2 billion. In other words, about $1 billion more than the same timeframe a year ago.
In the fiscal year 2022, Kentucky reported $6.8 billion in handle from HHR. With the fiscal calendar ending on Sep. 30, HHR should gallop well past 2022 numbers.
HHR has helped Kentucky and other states recoup some of the losses the horse racing industry has seen in recent years. Because of its historical “virtual” nature, HHR race takes place regardless of the weather and no horses are ever injured.
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For much of the year, HHR is the saving grace of the industry in Kentucky.
For example, in February, the KHRC reported the simulcast racing total handle was $7.5 million. That is only a fraction of the nearly $700 million generated by HHR.
Kentucky is one of six states that allow Historical Horse Racing, along with Kansas, Louisiana, New Hampshire, Virginia, and Wyoming.
How does historical horse racing work?
With HHR betting, customers place wagers from a device that appears much like a slot machine. The bet is placed on a horse race that was ran in the distant past.
The “race” is played on the console of the machine or on a large display for the public to view, using a historical race to determine a winner.
Winners in HHR betting are paid out in a parimutuel pool. Bettors can select from many odds, whether to bet on win-place-show, or combinations of odds based on historical performances by a horse and on a given track.
In the 2022 fiscal year, Kentucky accounted for nearly half of all HHR total handle in the U.S. The popularity of U.S. sports betting and increase in visitors to many retail sportsbooks likely helped fuel the steady increase in HHR wagering.
However, HHR betting seems to be more popular in the racing off-season. On the other hand, the staggering amount wagered on HHR machines prove the machines are critical for the success of gambling in the Bluegrass State.
In 2021, executive vice president of the Kentucky Equine Education Alliance, Elisabeth Jansen, echoed those sentiments.
“Without historical horse racing, we would have a few days of racing at Churchill Downs and a few days of racing at Keeneland and that would be about it. If it were not for historical horse racing, Ellis Park would be closed and Churchill Downs would not be rebuilding Turfway Park,”
