by Frank Angst

With horsemen blocking Churchill Downs from importing its simulcast signal to most advance deposit wagering outlets, the Louisville track on Friday announced plans for a 20% purse cut to begin on May 14.

Kentucky horsemen are pursuing an increased share of ADW revenue. Their negotiating representative, the Thoroughbred Horsemen’s Group, asks that 33% of ADW revenue be committed to purses. Churchill Downs Inc. said the plan would make their ADW, TwinSpires.com, unprofitable. Without an agreement with the horsemen, Churchill Downs has not been able to offer its signal to most ADW outlets.

“We have been left with no option but to reduce overnight purses to offset the amount of lost handle because Kentucky horsemen have prevented horse racing fans from wagering through ADW platforms,” said Churchill Downs President Steve Sexton. “We are disappointed because the failure to send the signal will negatively impact the product both on and off the racetrack. While we are still hopeful this impasse can be resolved, we have no choice but to act now.”

Horsemen in Texas and Florida are involved in similar disputes at Lone Star Park and Calder Race Course. Churchill owns Calder Race Course and co-owns TrackNet Media, which handles simulcast signals for Magna Entertainment Corp.’s Lone Star Park.

“What THG and the horsemen’s organizations that formed THG want is a fair distribution of ADW revenues to live racing interests, and certainly to purses—the definitive indicator of viable horseracing,” said THG Manager Wilson Shirley. “The various ADW proposals CDI/TrackNet have offered to Texas, Florida, and Kentucky horsemen do not result in a fair distribution, but instead are weighted heavily to the benefit of ADW operators.”

On April 24, Churchill Downs and some of its companies filed a lawsuit against the THG and several horsemen’s organizations, saying the refusal of Florida horsemen to approve distribution of Calder’s races violates antitrust laws.

Only allowed to offer to ADW customers the Kentucky Derby presented by Yum! Brands (G1), the Woodford Reserve Turf Classic (G1), and the Kentucky Oaks (G1) from its May 2 and May 3 cards, Churchill Downs said off-track wagering was down 2.5% for its biggest weekend of the year. The track said the drop would result in a loss of about $250,000 in purse contributions.

Frank Angst is senior writer of Thoroughbred Times