In a landmark decision, the Louisiana Supreme Court has ruled that the operation of Historical Horse Racing (HHR) machines is unconstitutional, citing the absence of required local voter approval. This verdict overturns previous legislation that permitted HHR gaming without direct consent from local communities.
HHR machines, which allow players to wager on replays of past horse races, had been introduced at several racetracks across the state as a means to boost revenue and support the declining horse racing industry. Proponents argued that these machines provided a vital financial lifeline, while opponents contended that they represented an unauthorized expansion of gambling.
The court's decision underscores the necessity for local communities to have a say in gambling-related activities within their jurisdictions. This ruling is expected to have significant implications for the state's gaming landscape, potentially leading to the removal of existing HHR machines and halting plans for their expansion.
The high court ruling was handed down two days before Fair Grounds completed its 153rd season of racing.
"We are disappointed with the recent ruling from the Louisiana Supreme Court declaring Act No. 437 unconstitutional," said a spokesperson for Churchill Downs Inc. "When passed in 2021, Act No. 437 provided a critical framework that authorized historical horse racing as pari-mutuel wagering. The legislature encouraged and authorized operators, such as Fair Grounds, to advance horse racing and strengthen its economic viability in Louisiana”.
Industry stakeholders are now assessing the impact of this decision and exploring alternative strategies to support Louisiana's horse racing sector. The ruling may also prompt legislative efforts to address the legal complexities surrounding gaming operations in the state.
