Horse Racing Slot Machine Games

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FRANKFORT, Ky. (CN) — The Kentucky Supreme Court ruled Thursday that historical horse racing slot machines are illegal under the state’s definition of pari-mutuel betting, poised to put a dent into the state’s billion-dollar gaming industry.

The court’s unanimous 7-0 ruling further limits gambling in Kentucky as the state already restricts betting to only horse races and has no casinos.

Oral arguments for the case were held in August, and the court’s decision hinged on the exact definition of pari-mutuel wagering and if the betting machines in question fit that definition.

Broadly speaking, pari-mutuel wagering refers to a system of wagers where all bets are pooled together, and in which the bettors are essentially wagering among themselves.

This would be opposed by traditional games of chance like blackjack, where the bettors are directly playing and betting against the casino.

The specific machines being challenged create the bettor’s odds based on three randomly selected historical horse races, which are usually shown on a screen near the top of the machine.

The court found that because the bettors were not necessarily wagering on the same exact race, they were not actually betting among themselves which is required by the definition of pari-mutuel wagering.

Another issue found by the court is that the betting pools must be established only by the betting patrons, and that in practice the establishments actually furnish the initial money pool or in certain circumstances may have to replenish the pool if one patron wins it all.

The ruling does not specifically spell out what happens to these games or the establishments that run them, but the court did acknowledge the impact of its ruling.

“We acknowledge the importance and significance of this industry to this Commonwealth. We appreciate the numerable economic pressures that impact it,” wrote Justice Laurance VanMeter who authored the opinion.

“If a change, however, in the long-accepted definition of pari-mutuel wagering is to be made, that change must be made by the people of this Commonwealth through their duly-elected legislators, not by an appointed administrative body and not by the judiciary.”

The Family Trust Foundation of Kentucky, a non-profit advocacy group and the case’s plaintiff, celebrated the court’s decision.

“The Family Foundation is grateful to the justices for seeing through the smoke screen generated by the tracks and the Kentucky Horse Racing Commission that for years has masked a form of gambling that ignored the clear legal definition of pari-mutuel wagering,” said Martin Cothran, a spokesperson for the group, in a statement.

“This decision reaffirms that words have meaning and that even the state’s most powerful industry can’t turn the plain language of the law upside-down for its own economic benefit. We are grateful to the justices on the Court for their common sense ruling that the rule of law still prevails.”

Besides just championing the court’s decision, the group also called on all horse racing tracks that run these games to “cease operations until it can be demonstratively shown that their activities are legal.”

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Despite the apparent setback of the court’s ruling, attorney Daniel Wallach of Wallach Legal LLC which specializes in sports wagering and gambling law, told Courthouse News that he thought the ruling was not doom-and-gloom, and that the court was simply “punting the issue back to the Legislature.”

“The court is saying if you are going to operate historical horse racing in Kentucky, it has to be pari-mutuel in nature and these games don’t fit within that definition,” Wallach said.” By no means does this decision outlaw historic horse racing, it just requires it to be truly pari-mutuel in nature in the Commonwealth of Kentucky.”

The ruling overturned a decision from the Franklin County Circuit Court that had found that the machines were legal under the definition of pari-mutuel wagering.

Concurring on the ruling were Justices John Minton, Christopher Nickell, Debra Lambert, Lisabeth Hughes, Michelle Keller and Samuel Wright.

Introduction to Arkansas Slot Machine Casino Gambling in 2020

Arkansas slot machine casino gambling consists of two casinos with racetracks and Class II skill-based gaming machines.

I’ve dedicated this weekly series to slot enthusiasts such as yourself as you master casino slots and win your way to success by using this State-By-State Online Resource to improve your slots gambling performance by reviewing your state’s slots gaming industry.

Keep Reading … Or Listen Instead!

Relevant Legal Statutes on Gambling in Arkansas*

The minimum legal gambling age in Arkansas depends upon the gambling activity:

Land-Based Casinos: 21
Poker Rooms: 21
Bingo: 18
Lottery: 18
Pari-Mutuel Wagering: 18

State law allows Class II skill-based gaming machines, but only if approved by local municipalities.

The competition-style slot machines must have some element of skill included with the device. However, in Arkansas, this decision-making feature on a secondary screen is often unused by players. The primary game theme played is often a Vegas-style game-of-skill.

The state legislature permitted skill-based gaming machines at Arkansas’ two racetracks with Act 1151 of 2005, the Local Option Horse Racing and Greyhound Racing Electronic Games of Skill Act.

Further, the Governor legalized the state’s tribes through negotiated tribal-state compacts to offer slot machines on their reservations in 1993. However, their proposed tribal casinos are not yet open.

Slot Machine Private Ownership in Arkansas

All slot machines are legal to own privately.

Gaming Control Board in Arkansas

The Arkansas state gaming commission is the Electronic Games of Skill Section within the Arkansas Department of Finance and Administration (DFA). The Section is responsible for gaming regulation and compliance of skill-based games in Arkansas.

Casinos in Arkansas

Arkansas has two commercial casinos and two proposed American Indian tribal casinos.

The largest casino in Arkansas is Southland Park Gaming & Racing in West Memphis with over 2,000 gaming machines.

The second-largest casino is Oaklawn Racing Casino Resort in Hot Springs.

Both proposed tribal casinos, one in Russellville and the second in Pine Bluff, will become the two largest casinos upon opening as they are both slightly larger than Arkansas’ existing casinos.

Commercial Casinos in Arkansas

The two commercial casinos in Arkansas are:

Oaklawn Racing Casino Resort in Hot Springs, 57 miles southwest of Little Rock.
Southland Park Gaming & Racing in West Memphis, 132 miles east and north of Little Rock on the eastern state border near the Mississippi River.

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These pari-mutuel wagering facilities with skill-based slot machines have a rich history going back over 100 years.

Tribal Casinos in Arkansas

The one proposed tribal casino in Arkansas without ongoing legal obstructions is:

River Valley Casino Resort in Russellville, 78 miles northwest of Little Rock.

Other Gambling Establishments

As an alternative to enjoying Arkansas slot machine casino gambling, consider exploring casino options in a nearby state. Bordering Arkansas is:

North: Missouri Slots
East: Mississippi Slots and Tennessee Slots
South: Louisiana Slots
Southwest: Texas Slots

Each of the links above will take you to my blog for that neighboring U.S. state to Arkansas.

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Our Arkansas Slots Facebook Group

Are you interested in sharing and learning with other slots enthusiasts in Arkansas? If so, join our Arkansas slots community on Facebook. All you’ll need is a Facebook profile to freely join this closed Facebook Group community.

There, you can meet online and privately share your slots experiences with local slots enthusiasts about playing slot machines in Arkansas. Join us!

Payouts and Returns in Arkansas

The state legislature requires electronic games of skill have a minimum theoretical payout of 83% over the expected lifetime of the game. There is no maximum theoretical payout limit.

The Electronic Games of Skills Miscellaneous Tax section of the DFA provides the gaming machine revenues for machines at the dog and horse racetracks. These publicly available amounts are insufficient to calculate player win percentages.

Summary of Arkansas Slot Machine Casino Gambling in 2020

Arkansas slot machine casino gambling consists of two racetracks with gaming machines with a minimum theoretical payout limit of 83%.

Annual Progress in Arkansas Slot Machine Casino Gambling

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In the last year, there has been little change to the slots industry in Arkansas outside of the current national crisis.

Other States from Professor Slots

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Have fun, be safe, and make good choices!
By Jon H. Friedl, Jr. Ph.D., President
Jon Friedl, LLC

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