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Sunday, October 23, 2011

The Scam that is horseracing

Horse racing is dead, no longer attracting enough crowds to support itself.

Massachusetts is proposing that taxpayers subsidize the Industry.

Kentucky, lacking a constitutional amendment to legalize Slot Machines is trying a backdoor approach.

Interesting ploy!


Kentucky to consider Ellis Park Instant Racing request
by Frank Angst

Ellis Park hopes to be the second Kentucky racetrack to add Instant Racing.

The Kentucky Horse Racing Commission will consider at its regular meeting on October 24 the Henderson track’s application for 252 Instant Racing machines. If approved, Ellis Park in Henderson would join Kentucky Downs in Franklin as the two Bluegrass tracks offering the machines that look like slot machines but pay off in a pari-mutuel manner.

Ellis owner Ron Geary told the Louisville Courier-Journal that he hopes to have the machines in place by early 2012 and he said it would require about a $3-million investment.

The Instant Racing machines have held up to court scrutiny in a case being pursued by a group that opposes expanded gaming in the state, The Family Foundation. Churchill Downs and Turfway Park officials have said they wanted to see the case hold up in the Kentucky Court of Appeals before moving forward.







Kent Ostrander on Instant Racing from The Family Foundation on Vimeo.



Today's Family Focus
For Immediate Release
Contact: Kent Ostrander

Group releases video of new slot machines, calls the plan a scam and asks for action


LEXINGTON, KY—"If a picture is worth a thousand words, then a video is worth ten thousand," said Kent Ostrander, director of The Family Foundation. "And these ten thousand words all scream 'slot machine.'" In a news conference today, Ostrander played a video of the so-called "Instant Racing” machines and asked Attorney General Jack Conway to investigate what he called “gambling machines at Kentucky Downs, which are prohibited by law.”

"Clearly no new law has been passed and no existing law has been changed. So how can electronic slot machines be legal?" Ostrander asked. "It is time for law enforcement to act."

Though the court case is on-going regarding the devices and the new regulations, Ostrander said he is confident The Family Foundation's position on the law will be upheld. "In the initial hearing, the Court actually denied us our due process right of discovery, so the first time we viewed these machines was in a still-shot supporting an article in the Herald-Leader about the grand opening," said Ostrander. "We went down last week and videoed them ourselves so that everyone can see the hoax that's being perpetrated on the citizenry of Kentucky." (Click image to view video)

Ostrander said he was going to deliver an official request that the Attorney General enforce the law. "The Attorney General is the people's highest-ranking law enforcement official. Surely he will agree that it is not good policy for state agencies to conspire with the gambling industry in an effort to make Kentucky citizens losers just so they and their friends can be winners."

By law, the Racing Commission is only authorized to allow pari-mutuel wagering on horse races. “It is obvious that these machines are not horse racing and that an isolated person betting by himself on one machine is not a pari-mutual wager,” said Ostrander. "Rational Kentucky citizens will come to the same conclusion as did the Wyoming Supreme Court when confronted the Instant Racing machines scheme, saying "We are not so easily beguiled."

According to Ostrander, KRS528.010 states: (4) “Gambling device” means: Any so-called slot machine or any other machine or mechanical device an essential part of which is a drum or reel with insignia thereon, . . .

Calling their bluff and upping the ante


FRANKFORT, KY— “This is the eve of a sobering day in the history of the Commonwealth. I am referring not simply to the introduction of expanded gambling, but even more importantly, the deliberate circumvention of the rule of law by individuals at the highest levels of Kentucky government,” said Kent Ostrander, executive director of The Family Foundation.

The Family Foundation has been engaged in a court case since last fall regarding the legality of the “Instant Racing” video lottery machines. Kentucky Downs claims that the Franklin Circuit Court’s December opinion approving expanded gamblin g protects them from criminal charges arising from adding instant racing machines before the case is final. “The fact is that the Franklin Circuit Court’s opinion protects Kentucky Downs from nothing because the opinion was not legitimate, and is currently under appeal,” said Ostrander.

Ostrander pointed out that The Family Foundation was barred by the Franklin Circuit Court from asking a single question or reviewing a single document in the proceeding. The Franklin Circuit Court’s action violated The Family Foundation’s due process rights; therefore its ruling does not legitimatize the addition of slot machines at Kentucky Downs or any of Kentucky’s race tracks.

“The governmental manipulation has been incredible: The Governor promised a constitutional amendment, the Attorney General has refused to enforce Kentucky Open Record’s laws, the legislature has been by-passed and now Kentucky Downs is moving forward with illegal machines before the case has been resolved – and no one in government is doing anything about it,” said Ostrander.

Currently, the penalty for breaking existing law and moving forward with these illegal slot machines is only a misdemeanor. “For the arrogant and wealthy, a misdemeanor is just the cost of doing business, like for some, a speeding ticket is just the cost of driving. We want to raise the ante,” said Ostrander. “Therefore, The Family Foundation will be asking the legislature, which has been by-passed throughout this entire enterprise, to raise the penalty of operating illegal gambling machines – from Misdemeanor to a Class D felony.”

“Kentucky Downs is playing a high-risk game knowing that it is easier to tell someone ‘No’ than it is to tell them to ‘Stop,’ said Ostrander. “We will hear them cry about the amount of money they spent and the jobs that will be lost – but they are doing this fully aware and assuming the risk.”

“Think about it: If it was truly legal, ALL of the tracks would be doing it. The rest know better.”

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Racing Commisson approves Instant Racing
But the story is far more intriguing than a simple headline because the legality of their decision is going before the Court of Appeals.


On July 14, the Kentucky Horse Racing Commission approved an application allowing “Instant Racing” machines to be placed at Kentucky Downs even though the legality of the gaming scheme still rests with the Kentucky Court of Appeals. Other race tracks were less bold, but nothing would stop the Racing Commission.

A quick glance at the history of the case reveals striking “irregularities” that are bewildering for the person who simply trusts in “the process” to find justice. Here is a partial list:

1) The court case began as a one-sided case when the Racing Commission, the Kentucky Revenue Cabinet and the eight Kentucky horse racing tracks literally sued themselves. Though this rare procedure can be done in civil cases for clarity regarding a critically pending point of law, they were asking the court if they would be criminally liable if they brought such video gambling machines into the state. A civil case?

2) To bring this special court case, they pleaded to the court that the need for the machines was an “immediate,” yet for seven months they deferred repeatedly a simple hearing by a legislative committee that could have decided their question with a simple vote. Immediate?

3) Then they finally allowed that committee to vote on the issue on May 10, but only when two antigambling legislators were unable to attend the hearing. The vote was four against the new gambling regulations and one for the new regulations. Because the rules of the committee required five “no” votes to kill such proposals, they were “passed.” How did they know two antigambling representatives were not going to attend the hearing?

4) When The Family Foundation petitioned to enter the case so the other side of the issue was at least presented, they were allowed to become a party but were told by the judge they could not do “discovery.” Entering a court case and not being allowed to ask questions is like a father telling his children that they can go swimming but “just don’t get wet.” What is a court case other than a mutual “asking of questions” to get to the bottom of the issues at hand?

5) When the judge ruled in favor of the Racing Commission and tracks on Dec. 29, he did not even mention the statute in question when the suit was initiated. In other words, they sued to be sure they would not violate a particular statute yet the judge never referenced the statute – in essence he just said, “Okay.” Was the real question truly examined?

6) When The Family Foundation asked for records of communication between the race tracks and the government agencies, the agencies denied the request claiming that they were protecting records because they had “common interest” with the tracks. Since when does a government agency “have a common interest with the gambling industry”?

7) When The Family Foundation asked for assistance from the Attorney General regarding their request for information, the request was denied because the Attorney General had a “conflict of interest.” Why does he now have a conflict of interest when he did not have one last year when he wrote a favorable (but questionable) opinion for the race tracks?

8) The five video games approved as “Instant Racing” by the Racing Commission on July 14 include “Crusin’ for Cash”, “Sir Willie’s Treasure Quest”, Cash Carnival”, “Wild West Willie’s Lucky Draw” and Yukon Willie’s Gold Rush.” These are horse races?

"All that is necessary for the triumph of evil is for good men to do nothing" - Dr. Edmund Burke

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