Thursday, October 30, 2014

Thinking Economically: Racing Commission Approves "Historical Racing" Machines

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Musings on Economic Freedom from the Texas Public Policy Foundation’s

Center for Economic Freedom

The Texas Racing Commission has decided to allow gambling on “historical racing, … a previously run horse or greyhound race.” While on the surface “historical racing” may sound like something akin to horse racing and pari-mutuel wagering, a quick glance at the picture to the left of the type of “instant-racing” machine that could be allowed under this proposed rule change paints a very different picture.

“Yukon Willie’s Gold Rush!” looks very much like a slot machine, despite the small window in the upper right-hand corner that shows a three second clip of the end of a “historical” horse race. When seen in action, the similarities of an instant racing machine to a slot machine are even more apparent.

When voters went to the polls in 1987, they were asked to vote for or against “the legalization of pari-mutuel wagering under the Texas Racing Act.” Voters approved the proposition, and Texas has allowed betting on horse and greyhound racing since about that time.

It is highly doubtful, however, that Texas voters in 1987 or today would recognize the form of gambling the Commission is now trying to make legal as a type of pari-mutuel wagering on horse races. The same goes for members of the Texas Legislature who voted to send the question of legalizing pari-mutuel wagering to the voters.

Acting without clear statutory authority is often a problem with state agencies as they attempt to tackle issues that are clearly the prerogative of the Texas Legislature—or the Texas people. The Legislature should respond by making it clear that playing slot machines is not pari-mutuel wagering and by reminding the Racing Commission to stay within its statutory bounds.

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Bill

Bill Peacock
Vice President of Research
Director, Center for Economic Freedom
Texas Public Policy Foundation

www.texaspolicy.com

@BillPeacock3

 

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