Key Moments:
- Representative Matt Lehman introduced House Bill 39 to equalize access to pari-mutuel pools for all bettors at Kentucky racetracks.
- Computer-assisted wagering (CAW) operators place billions of dollars in bets each year, heavily influencing odds and payouts for casual bettors.
- In November 2025, the Kentucky Horse Racing and Gaming Corporation approved electronic table-game themes within the state’s Historical Horse Racing system.
House Bill 39 Introduced in Response to Technological Betting Edge
House Bill 39, sponsored by Representative Matt Lehman, addresses an imbalance between ordinary horse racing fans and large computer-assisted wagering (CAW) entities. Lehman was inspired by his own experiences as a Keeneland fan. He observed last-second changes in winning odds caused by high-volume CAW bets. Consequently, casual bettors are increasingly disadvantaged. Syndicates using advanced algorithms dominate wagering pools, according to Lehman.
The Impact of Computer-Assisted Wagering on the Industry
Across the U.S., CAW has become a powerful force in pari-mutuel betting. Industry reports cited by CasinoBeats show CAW activity totals billions of dollars annually. These groups use technology to place thousands of bets instantly, often just before races start. Additionally, rebate programs allow them to shift odds dynamically. As pari-mutuel odds finalize only when betting closes, last-minute high-volume bets can reduce payouts for retail bettors, even when their selections are correct.
Details of House Bill 39
The bill aims to ensure fairness in pari-mutuel wagering. It mandates equal access to pools without preferential treatment. Specifically, it states: “Access to pari-mutuel pools shall be made available to all patrons on equitable terms. No patron or class of patrons shall receive preferential pricing, rebates, access, information, technology, latency, or other advantages not uniformly available to all patrons placing wagers of the same type into the same pari-mutuel pool.”
Concerns Over Industry Sustainability
Lehman describes his initiative as a step to protect Kentucky’s horse racing sector. However, he does not oppose technological advancements. While CAW groups contribute significantly to betting volumes, Lehman warns that the system may hurt the sport’s popularity. National wagering on thoroughbred racing reached about $11 billion in 2025. This matches 2019 figures but is down 24% from $14.5 billion in 2005.
“The industry must find ways to grow its gambling base to survive long-term,” Lehman said. “Right now, we have many $2 weekend bettors and only a few large players. The middle is being squeezed out, which is not sustainable.”
Navigating Economic Implications of Reform
Lehman acknowledges CAW plays a key role in funding purses and maintaining racetrack operations. However, he warns that banning it outright could harm the industry and associated personnel. Therefore, he proposes reforms that balance fairness with sustaining the overall sector and its core fanbase.
“This industry matters not just to horsemen, but to the entire state,” Lehman said. “A healthy long-term fan base is essential. Reform could help encourage that.”
Recent Developments in Kentucky Gaming
In November 2025, the Kentucky Horse Racing and Gaming Corporation (KHRGC) approved electronic table-game themes for the Historical Horse Racing (HHR) system. This represents a major step in modernizing wagering technologies at local racetracks.
| Year | National Thoroughbred Pari-Mutuel Handle |
|---|---|
| 2005 | $14.5 billion |
| 2019 | approx. $11 billion |
| 2025 | approx. $11 billion |
- Author
Daniel Williams
