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Churchill Downs filed suit Wednesday against Kentucky horsemen to stop them from blocking Internet wagering and Florida's off-track betting sites. The complaint, filed in U.S. District Court in Louisville, alleges that Kentucky horse trainers and owners have joined with horsemen in 15 other states to force Churchill Downs to give them a bigger share of the revenue from advance-deposit wagering, which includes Internet wagering.
Churchill alleges that the horsemen's groups are conspiring "to fix prices and orchestrate a joint boycott."
The complaint, filed originally on April 24, was amended on Wednesday to add the Kentucky Horsemen's Benevolent and Protective Association, the Kentucky Thoroughbred Association, KTA executive director David Switzer, KHBPA president Rick Hiles and executive director Marty Maline. Switzer, Hiles and Maline had no comment last night.
Other defendants include the Thoroughbred Horsemen's Group, Florida HBPA, and officers of both groups.
Racehorse owners and trainers have formed a negotiating body, the Thoroughbred Horsemen's Group, that is pushing for a third of the revenue from advance-deposit wagering platforms.
To leverage a bigger slice of that pie, the horsemen are blocking Churchill Downs Inc. from taking bets on Louisville races via its ADW site, TwinSpires.com, and at off-track betting sites in Florida.
Horsemen in other states have similarly blocked ADW bets on races at Calder in Florida, Lone Star Park in Texas, and Presque Isle Downs in Pennsylvania.
It is unclear how these actions will affect betting on Saturday's Preakness, the second leg of the Triple Crown. Churchill Downs was allowed to take Internet bets on the Kentucky Derby, the Kentucky Oaks, and the Woodford Reserve. Churchill Downs on Wednesday instituted 20 percent purse cuts, citing a drop-off in betting.
Churchill has asked the court for an injunction dissolving the Thoroughbred Horsemen's Group. Churchill also wants the judge to stop horsemen from negotiating for the same terms at multiple tracks and prevent the boycott of racetracks and ADW sites.
"It is in the best interest of our racetrack, our horsemen and certainly our customers for the Churchill Downs signal to be made available to racing fans throughout the country," said Churchill Downs Inc. executive vice president Steve Sexton in a statement.
Racetracks are required by federal law to have the approval of horse trainers and owners to take simulcast bets. Simulcast wagering accounts for 88.3 percent of the $15.4 billion in annual betting on North American races, according to The Jockey Club Fact Book.
