The Supreme Court of Louisiana ruled against four race tracks, declaring a statute legalizing historical horse racing machines unconstitutional without local voter approval. Lawsuits were brought by local voters and residents against the tracks, leading to potential cuts in purses. HHR gaming operations began in Louisiana in 2021 after a law was passed incorporating it as a form of pari-mutuel wagering.
The court ruled that HHR is a new form of gaming, not just a new technology, requiring approval by local option vote in affected parishes. Churchill Downs expressed disappointment in the ruling, stating that it negatively impacts the horse racing industry in Louisiana. The decision will result in a 25% reduction in purses at Fair Grounds, affecting the economic viability of the industry.
The ruling does not mention whether a local referendum will be pursued, and tracks in Louisiana may also offer traditional slot machines. In contrast, sports betting apps were widely approved in 55 of 64 Louisiana parishes in 2022, showing a different form of new gambling gaining acceptance in the state.