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Horse Racing Commission reports declines in participants, flags unsanctioned "brush" tracks and regulatory risks from HISA and online gaming
Summary
The Oklahoma Horse Racing Commission briefed lawmakers on declining license and racing participation, continued revenue from casino-style machines, safety gains and concerns about unsanctioned "brush" tracks and online betting. The commission also outlined uncertainty around the federal Horse Racing Integrity and Safety Act.
John Chancey, executive director of the Oklahoma Horse Racing Commission, told the appropriations subcommittee that pari‑mutuel wagering and occupational licenses have been in long-term decline while gaming-machine revenues have grown.
"We have about a 45% decline" in racing-related occupational licensing since 2016, Chancey said. He told the committee simulcast wagering and live racing handles have been relatively steady but that live racing participation and the number of runners per race have fallen notably in Thoroughbred meets.
Chancey said gaming-machine revenues — which flow to purses, organizational licenses, and the state — now account for the largest share of commission revenue, and he described recent progress in reconciling simulcast contracts and improving oversight.
On safety, Chancey said the industry—ontinues to reduce fatalities: "Last year we've had the best year ever. We only had about 14 racing fatalities," he said, adding that 28 racing fatalities in recent history include many non-race training incidents.
Chancey also warned the committee that unsanctioned "brush" tracks are a problem. "There's 300 plus freight brush tracks in the country," he said, and Oklahoma has a dozen to 15. Such unsanctioned events, he said, can involve unregulated gambling, food and alcohol vendors with little oversight and perceived criminal activity.
He outlined legal uncertainty around the Horse Racing Integrity and Safety Act (HISA), a federal program that would centralize standards and testing for Thoroughbred racing. The federal program charges fees to states or industry participants; the choice to "opt in" or "opt out" poses potential financial and operational costs. Chancey said the commission is monitoring lawsuits that have reached federal appeals courts and expects the U.S. Supreme Court could address the law.
Members asked about the economy of racing, breeding fund payouts and the state's bridal program. Chancey said the state bridal fund receives breakage and registration income, distributed in purses and breeder incentives, and that quarter-horse registrations have grown while Thoroughbred registrations and broodmare counts have fallen.
