Horse racing groups urge Idaho Racing Commission to bring back betting machines

Horse racing groups are urging the Idaho Racing Commission to sign off on a last-ditch effort to save their faltering industry after failing to persuade the Legislature to reinstate lucrative betting machines known as instant, or historical, racing terminals.

John Sheldon, president of Treasure Valley Racing, the operator of Les Bois, Idaho’s largest horse racing track, told racing commissioners Wednesday that they have the authority to allow tracks to use the terminals.

Historical horse racing allows bettors to place wagers on prior horse races that are videotaped with no identifiable information about the horses or results.

The terminals have spinning wheels, sounds and animations that mimic slot machines. Supporters say the machines differ from slot machines because historical racing uses a legal parimutuel betting system that pits bettors against each other and gives the house a percentage of the winnings.

Lawmakers legalized historical racing in 2013 but quickly repealed the practice two years later after critics said they had been duped into approving cleverly designed slot machines.

Gov. Butch Otter tried to veto the repeal law, but the Idaho Supreme Court eventually ruled that the Republican governor failed to complete the veto on time.

Since the repeal, tracks have shuttered and industry groups have moved to neighboring states, like Wyoming and Oregon, that are considered friendlier and more profitable for their business. Without historical racing, horsemen’s groups argue, their entire industry will disappear.

Sheldon said that the commission approved virtual horse racing — similar to historical racing — in 2008 through an administrative rule-making process. Back then, the commission adopted a temporary rule to allow virtual horse racing, but the issue was ultimately dropped due to legislative opposition.

Sheldon argues that the commission should use that precedent to approve his historical racing application and others.

Administrative rules are created by executive agencies to enforce state laws and carry the same weight as laws. Agencies such as the racing commission can approve temporary rules if they meet certain criteria and are approved by the governor’s office, but all temporary rules ultimately need legislative approval to remain in effect long-term.

Such approval from lawmakers is expected to be an uphill battle.

Racing commission members did not make any decisions during the meeting.

“I am hopeful we can reach a middle ground with the Legislature,” said Commissioner Fred Snook. “We haven’t had much communication. The main purpose of today’s meeting was to get started on that plan.”

Rep. Tom Loertscher, R-Iona, and Sen. Jeff Siddoway, R-Terreton, were the only lawmakers in attendance Wednesday at the commission meeting. They did not offer any comment when prompted by commissioners, and they left before the end of the meeting. The two are chairmen of the House and Senate State Affairs panels, which would handle historical racing-related legislation.

On Wednesday morning, the House State Affairs Committee voted unanimously to introduce a resolution repealing all state rules and regulations regarding historical-racing terminals, reported Betsy Z. Russell with The Spokesman-Review. The rules remained in place after the law was repealed two years ago.

This story was originally published January 25, 2017 at 7:08 PM with the headline "Horse racing groups urge Idaho Racing Commission to bring back betting machines."