Ruling against the interests of four race tracks, the Supreme Court of Louisiana declared unconstitutional a statute legalizing historical horse racing machines without first requiring local voter approval.
Lawsuits challenging gaming on HHR using devices that visually resemble slot machines were brought by local voters and residents against entities that own Delta Downs, Fair Grounds Race Course & Slots, Louisiana Downs, and Evangeline Downs. The state supreme court ruling against the tracks was handed down March 21 and will, according to at least one track operator, lead to cuts in purses.
HHR gaming operations began in Louisiana after the state legislature passed a law in 2021 incorporating HHR as a form of pari-mutuel wagering. The latter form of gaming has long been authorized by Louisiana law.
“In recent years, the legality of historical horse racing has been questioned in other states where pari-mutuel wagering on horse races is legal, prompting the passage of laws clarifying that historical horse racing is a type of pari-mutuel wagering on horse races,” wrote justice William J. Crain for the court. “Likewise, (the 2021 law) defined historical horse racing as a form of pari-mutuel wagering on horse races. … The Act authorized historical horse racing only at offtrack betting facilities that were licensed to conduct pari-mutuel wagering.”
The crux of the arguments against the tracks in the lawsuits lies in a 1996 amendment to the Louisiana constitution that requires a majority vote in a parish referendum election for any new form of gaming in the parish “not specifically authorized by law” before the amendment. A central question presented to the courts was, in essence, whether HHR is a new form of gaming not previously authorized by law or merely a new technology plugged into an already legal form of betting, pari-mutuel wagering.
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The state’s highest court agreed with a trial court ruling declaring HHR a new form of gaming, not just a new form of technology. The ruling means the constitution of Louisiana requires, in the words of the court’s opinion, “approval by local option vote in an affected parish before historical horse racing is licensed or permitted to be conducted in that parish.”
The high court ruling was handed down two days before Fair Grounds completed its 153rd season of racing.
“We are disappointed with the recent ruling from the Louisiana Supreme Court declaring Act No. 437 unconstitutional,” said a spokesperson for Churchill Downs Inc. “When passed in 2021, Act No. 437 provided a critical framework that authorized historical horse racing as pari-mutuel wagering. The legislature encouraged and authorized operators, such as Fair Grounds, to advance horse racing and strengthen its economic viability in Louisiana.
“As a result of this law, we made investments to bolster the horse racing industry, foster job creation and support local communities. This recent court ruling directly and adversely negates this progress.
“The impact of this decision reverberates throughout the Louisiana Thoroughbred racing community with immediate consequences. These include an approximately 25% reduction in purses at Fair Grounds, which diminishes a key economic driver for horsemen who depend on competitive purses to support their operations.”
Comment from Churchill Downs does not make reference to whether a local referendum will be pursued. Unlike some other states with HHR, tracks in Louisiana may also offer traditional slot machines, and they are utilized at Fair Grounds.
A different form of new gambling was widely approved relatively recently in Louisiana. According to a 2024 report published in legalsportsreport.com, local voters approved sports betting apps in 55 of 64 Louisiana parishes in 2022.
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