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After a recent discussion, a Michigan lawmaker’s optimism towards legalizing historical horse racing machines has increased.
According to Sen. Curtis Hertel Jr., he expressed optimism about finding a compromise to preserve Michigan’s horse racing industry after a meeting in May. The gathering included lawmakers, representatives from the administration, commercial casinos, tribal casinos, and racetracks.
Hertel expressed a firm belief that there is ample opportunity to accomplish the task. He acknowledged that this may be the final opportunity, but also viewed it as the most favorable one. The outcome remains uncertain, and time will reveal the result.
Senator Dan Lauwers, who is the sponsor of S396, previously emphasized to Playinmichigan that passing historical horse racing (HHR) is crucial for the state. Failure to do so, as has been the case for the past two years, may result in the loss of the remaining racetracks in Michigan.
Hertel’s participation bodes well for their chances of staying afloat.
Hertel knows how to pass difficult gaming bills
In 2019, Hertel spearheaded the negotiations for the state’s online casino and sports betting bills in the legislative arena.
Despite Gov. Gretchen Whitmer’s previous concerns about the bills for online casino, poker, and sports betting, it is important to note that Michigan now boasts a thriving statewide industry in these areas.
Hertel, whose father, a lawmaker, had previously employed a young Whitmer, played a role in facilitating an agreement.
Hertel acknowledged that there are currently fewer issues with this bill compared to when negotiations for the online gaming package started.
Why Gretchen Whitmer has stood in way of HHR
Originally part of the 2019 package, there were two bills aimed at revitalizing Michigan’s horse racing industry. The first bill aimed to authorize advance deposit wagering (ADW), while the second bill focused on historical horse racing.
At the administration’s request, the HHR bill was withdrawn as Governor Whitmer had no intention of signing it.
Hertel mentioned that the governor has valid concerns regarding the impact on compacts and other related matters. As far as I am aware, the governor does not hold any issues with the horse racing industry itself. The main focus lies in determining the specifics and resolving any related details.
Hertel emphasized that the primary concern regarding HHR lies in avoiding any violation of the gaming compacts established with Michigan’s Native American tribes.
Last year, Fred Harrington, a tribal council member representing the Little Traverse Bay Bands of Odawa Indians, informed Playinmichigan that if the Michigan historical horse racing bill were to be implemented, tribes would discontinue their gaming payments to the state.
In order to prevent that situation, Hertel aims to include the tribes in the discussion.
Hertel explained, “Given that the bill was not a result of negotiation, it’s understandable why people felt frustrated. Our current focus is to involve everyone in the discussion and bring them to the table.”
Path forward for Michigan historical horse racing
Northville Downs near Detroit is the sole active horse racetrack in Michigan, where it exclusively holds standardbred harness racing events.
In 2018, AmRace & Sports LLC acquired the dormant Sports Creek Raceway with the objective of resurrecting thoroughbred racing in Michigan. However, their commitment came with a condition: the revival would only be possible if the state legalized ADW (Advance Deposit Wagering) and HHR (Historical Horse Racing).
If the state fails to make progress on HHR this year, Lauwers states that the company will discontinue the project.
In order to receive compensation for the inclusion of Historical Horse Racing (HHR), Hertel introduced bill S398, which aims to authorize simulcast betting at Michigan casinos. This bill is interconnected with S396, as it cannot be passed without the approval of the HHR legislation.
According to Hertel, “I believe it is something they desire. However, it may not hold the same level of significance as other market concerns. Generally, only three to four race days annually truly attract customers to a casino. Nevertheless, I do think it demonstrates our willingness to involve them in this process.”
In May, the Senate Agriculture Committee moved forward with a package of horse racing bills. Hertel acknowledges that while the Senate would approve the bill in its current form, legislators are aware that it requires the endorsement of both the House and the governor.
Lawmakers will persist in their efforts to reach a mutually acceptable agreement, as the Michigan legislative session extends into January, allowing ample time for negotiations.
Hertel expressed optimism amidst the considerable effort required, stating, “Though it demands substantial work, my hopefulness surpasses any I have experienced in recent times. The industry has endured a prolonged wait and is in dire need of assistance.”
Another boost could be coming for MI horse racing
In the near future, Lansing lawmakers may provide an additional boost to the horse industry.
The Michigan House approved two bills recently, aiming to eliminate the $3 million limit on funds allocated to the Agriculture Equine Industry Development Fund from internet gaming and online sports betting revenue. This fund plays a vital role in promoting horse breeding and rearing activities within the state of Michigan, including financial assistance for horse racing held at county fairs.
Julie Alexander (R-Hanover) introduced HB 4823, while Kevin Hertel (D-St. Clair Shores), the brother of Curtis Hertel, introduced HB 4824. Both bills have now been referred to the Senate Agriculture Committee for further review.
At present, any money exceeding the $3 million limit from each type of gaming is allocated to the Internet Gaming Fund and Internet Sports Betting Fund. These funds are then directed towards the school aid fund.
Matt Schoch from Playinmichigan contributed to this report.
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