Commission backs off plan to allow historical racing terminals

AUSTIN—Opponents of gambling expansion in Texas haven’t entered the winner’s circle yet, but with the finish line in sight, they appear to have scored a major victory in defeating slot-machine-style historical racing terminals at horse and greyhound tracks.

Rob KohlerAfter lawsuits, rebuke by the Texas Senate Republican Caucus and threatened defunding, the Texas Racing Commission voted 6-2 to begin the process to remove all references to historical racing terminals from rules that govern racetracks.

Since the law requires a 30-day public comment period, a final vote by the commission likely will be scheduled later this summer—probably in August.

“It’s the right thing to do, since we believe the commission never had the authority in the first place to move forward” with expanding rules to allow the terminals, said Rob Kohler, consultant with the Texas Baptist Christian Life Commission.

Historical racing machines—also called “instant racing” devices—display information and a brief video clip from previously run races stripped of identifying markers. They also allow players the option of pushing a single button to play and allowing the machine to make wagering choices.

Commission said to be ‘overstepping its authority’

Last year, 15 members of the Texas Senate Republican Caucus signed a statement chiding the commission for attempting to “circumvent the legislature’s authority to decide what types of gambling are and are not legal.”

The state senators insisted historical racing does not fit the legal definition of pari-mutuel gambling, which requires the full amount wagered by all parties on a single race to be split among contestants, the racetracks and gamblers who placed winning bets.

The senators asserted the Texas Racing Commission was overstepping its authority by using its rulemaking privilege to expand gambling, and a state district judge agreed, ruling last November the commission lacked authority to allow historical racing terminals in Texas tracks.

However, even though no Texas racetracks installed the terminals after the judge’s ruling, the rule change approved by the Texas Racing Commission “was still on the books,” Kohler explained.

Funding withheld

So, state senators initially left out funding for the agency from the Senate budget. Although lawmakers eventually restored the commission’s budget, a budget rider withheld part of the money, which has to be approved by the legislative budget board.

Rodger Weems, chairman of Stop Predatory Gambling-Texas, expressed appreciation for the commissioners’ most recent decision.

“We applaud the Texas Racing Commission for its decision to comply with the Texas Constitution,” Weems said. “Although it is sad that it almost took defunding the commission to bring about that decision, we hope this vote marks the beginning of better relations between the TRC and the citizens and lawmakers of Texas.”