![]() Kentucky’s tax on instant racing slot machines is also low compared to how other states tax slots. Instant racing is currently taxed at just 1.5% of the average daily handle, compared to a rate of 3.5% imposed against betting at tracks with an average daily handle of over $1.2 million (2 of the 4 instant racing facilities currently operating have an average daily handle of over $1.2 million, with Keeneland/Red Mile likely to hit that level in 2020). Kentucky’s tax rate on instant racing is very low compared to the rate imposed on live racing in the state at tracks with comparable average daily handles. Kentucky’s tax rates on slots are extremely low As part of the approval process, the Kentucky Horse Racing Commission approved up to 2,500 instant racing machines, which will be part of a major renovation that is expected to be completed in late 2021. Turfway is the only thoroughbred track in Kentucky that currently does not have instant racing machines. Churchill Downs purchased Turfway Park, located in Boone County in October 2019.Derby City currently has 1,000 machines, so a total of 2,000 additional machines can be deployed by Churchill at any time). (It should be noted that Churchill has received approval for a total of 3,000 machines that can be deployed at Derby City or at the new on-track facility. The projected completion date is late 2021. Churchill Downs announced in October of 2019 a significant renovation project that includes a hotel and an instant racing parlor with 900 machines at its flagship track facility.In June 2019, the track was approved to increase the number of instant racing machines from 179 to 1,200 as part of a renovation and expansion. Ellis Park, located in Henderson County, which was recently purchased for the second time in less than a year by Ellis Entertainment, a subsidiary of Laguna Development Corporation, based in New Mexico.The facility is expanding with an anticipated completion date of September 2020 for the first phase, which will increase the number of instant racing machines at the location from 753 to 1,200. Kentucky Downs, located in Simpson County, which was recently purchased by new owners from Nevada.Oak Grove began offering live betting on Standardbred races in October of 2019, and plans to open its instant gaming facility in June of 2020 with 1,200 instant racing machines. It includes an instant gaming parlor, hotel, equine center and Standardbred track. Oak Grove, a new facility currently under construction in Christian County, which is jointly operated by Churchill Downs and Keeneland.On top of the 2,800 machines now in use, the Kentucky Horse Racing Commission has approved the addition of over 7,000 new machines that will likely become operational over the next 24 months, including the following: Moving forward, there will be a more than tripling of the number of instant racing machines operating in the state. Existing instant racing venues also experienced double–digit growth in the amount bet and gross commission per day, per machine. ![]() ![]() If the tax rate is increased and the planned expansions occur, potential new revenues over the next two years could increase to as much as $80 –$100 million, providing significant support to much-needed investments in the commonwealth.Ĭasinos are here-in the form of “instant racing” slot machine parlorsīetween 20, the amount bet through instant racing machines increased by 80%, or just over $900 million, primarily due to the addition of 900 new machines at Derby City Gaming in Louisville in September of 2018. Based on new information, we now estimate the potential new revenues at over $60 million annually, excluding the expansion of instant racing machines described below. Since then, instant racing machine use has continued to grow rapidly. ![]() At that time, we estimated the potential new revenues from taxing all betting at a uniform 3.5% of average daily handle (the average amount bet daily), and depositing all the resulting new revenues in the General Fund, at over $40 million. In May, we wrote about the missed opportunities and lost revenues because of Kentucky’s failure to uniformly tax betting that is already happening in our state. More On Budget & Tax: More Disasters Are Coming. ![]()
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