G3 INSIGHT - HHR MACHINES
Te impact of Historical Horse Racing Machines on the US market
Historical Horse Racing Machines (HRMs) are playing an increasingly important role in the US market. A number of states have passed laws allowing for their expansion while other states could be on the brink of giving them the green light.
With the possible roll-out of thousands of these machines over the coming years they will have a significant impact on the gambling landscape overall in the US. But what are they?
HRMs allow bettors to wager on old horse races that are not visible to the bettor and utilise the results of previously run, live horse races to generate player outcomes. After the wager is placed, the player can watch an animated re-enactment of the selected past race results. But while they may look and feel like a more traditional slot the wagering is pari-mutuel.
Crucially, HRMs have helped fill the gap in markets where RNG games are not permitted. In addition Historical Horse Racing (HHR) allows tracks to generate revenues after races and on non-racing days and have as a result proved crucial in bolstering the horse racing industry in states where it has been in decline for years. HRMs for instance have been present in Wyoming since 2013. Since then they have generated revenue of over US$44m.
HHRs have, however, been controversial in most states with lawmakers changing position on whether they should be permitted. Te Idaho Legislature legalised them in 2013 but laws were repealed two years later. A ballot initiative to get them approved once more failed in 2018.
Te Texas Racing Commission gave them the green light in 2014 at racetracks. Before they were launched the Texas Racing Commission voted to repeal the rules two years later. In Nebraska a County District judge blocked plans to install historical horse racing terminals at Fonner Park racetrack in February 2020.
At the heart of the argument against them has always been the question of whether HRMs are a form of pari-mutuel wagering, or are they in fact to all intents and purposes a traditional type slots found on casino floors.
THE GROWTH OF HHR
While the road has been a bumpy one, a number of states are now weighing up the
advantages of HHRs, especially in places where horse racing has traditionally been an economic force for many decades. But they are also making inroads in states such as New Hampshire where there have been no racetracks for some time. In fact the last live horse race occurred in New Hampshire at Rockingham Park in 2009. Te racetrack was demolished in 2017. Governor Chris Sununu’s bill to make HHR legal found cross party support in the state.
Bill 626 allows for HHR at 16 already existing charitable gaming facilities. Tax revenue generated from HHR wagers will be allocated to the New Hampshire education trust fund and to local New Hampshire charitable organizations. Te state expects to bring in $6m in its first year.
Te history of horse racing in the State of Louisiana can be traced back much further - to the mid-1800s. In June the Louisiana Senate voted overwhelmingly in favour of Bill SB 209 that would allow for up to 50 historical horse racing machines at the 16 OTBs in the state. It also allows for a mobile option for those playing on site.
Crucially HRMs have helped fill the gap in markets where RNG games are not permitted.
Historical Horse Racing (HHR) allows tracks to generate
revenues after races and on non- racing days and have as a result proved crucial in bolstering the horse racing industry in states where it has been in decline for years.
P32 WIRE / PULSE / INSIGHT / REPORTS
As is the case in many other states with a long tradition of horse racing funds generated by HRMs will be used to raise prize money thereby attracting bigger fields and allowing racetracks to compete with other states for the best races.
A BOOST FOR THE HORSE RACING INDUSTRY OR A DEAL WITH THE DEVIL?
Te horse racing industry in the US is becoming increasingly dependent on HRMs. Just how dependent was recently revealed in Kentucky - arguably the country’s leading horse racing state. In Kentucky HRMs have been present for almost a decade. Tere are now six HHR venues in the state which combined house just over 3,700 HHR machines. Operators have invested as much as $1bn in HHR facilities so far.
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