Otter changes mind on 'virtual' horse racing

Under pressure from key legislators, Gov. Butch Otter wants to kill a proposal he approved that would have cleared the way for betting on computerized horse racing.

Noting opposition to the rule from two legislative subcommittees that met Tuesday, Otter wrote the Idaho State Racing Commission Thursday urging it to hold a special meeting to kill the "virtual racing" rule.

"There are simply too many questions surrounding the technology and process to move forward," Otter wrote. "The industry and the Legislature should be free to continue a dialogue on this issue without implementation of a rule looming in the background."

Commissioners quickly scheduled a meeting on Election Day to consider the temporary rule set to take effect Nov. 17.

Legislators on two subcommittees of the House and Senate State Affairs committees asked Tuesday that such a significant change to Idaho's gambling law be made in a bill considered by the Legislature, not by administrative rule.

They voted 5-1 to register their formal objection. The operator of Les Bois Park was moving to begin pari-mutuel betting on computer-generated races on Nov. 17 or soon after. If the rule isn't withdrawn, the Legislature will have to wait until convening in January to reject it.

Capitol Racing, which runs Les Bois Park, brought the rule change to the Racing Commission and Otter early this year.

By law, temporary rules require a special finding by the governor. In this case, Otter determined the rule "confers a benefit."

In his letter to the commission Thursday, Otter said he'd been impressed by the fact all four Idaho horsemen's groups supported virtual racing and "saw its potential for helping the horse racing industry in Idaho."

He wrote that he thought the commission had the legal basis for the rule, but said he was "not informed enough to be an advocate for this type of gaming."

John Chatburn, one of the three racing commissioners, also works on Otter's personal staff as his special assistant for energy and water.

Chatburn said Thursday that he and the governor have not discussed virtual racing. Chatburn said the commission will review lawmakers' concerns and the governor's letter and discuss the matter with their attorney before acting.

Commissioner Mike Bosen said he would reserve judgment until Tuesday's meeting. Commissioner Tim Ridinger was unavailable for comment.

Opposition to the rule included the chairmen of the House and Senate State Affairs committees, a competing track in Post Falls and the Idaho Values Alliance. Otter said they raised "serious and legitimate concerns," prompting him to ask the commission to rescind the rule.

The virtual racing proposal was made by Stephen Bieri, the San Diego-based owner of Capitol Racing. Bieri also is part owner of the software company that has developed virtual racing under the iRace brand.

Bieri hopes race tracks across the country will carry simulcast signals of computer races from Idaho. He promises to share about 9 percent of virtual racing revenues with Idaho horsemen, the same amount they receive from betting on live racing.

Dan Popkey: 377-6438