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US – Exacta announces system modification following Kentucky Supreme Court decision

By - 28 September 2020

Exacta Systems will introduce a new Historic Horse Racing system in Kentucky following a decision of the Kentucky Supreme Court. In its ruling on whether HHR as currently operated in Kentucky fell within the Kentucky statutory requirements, the Kentucky Court wrote that wagering “requires that patrons generate the pools based on wagering on the same discrete, finite events.”

Kentucky Governor Andy Beshear said: “Historical Horse Racing is an important part of Kentucky’s economy that supports jobs and contributes over $21 million to the state budget,” Beshear said. “We are working with various partners to find a path forward.”

The Court also held that initial seed pools should not be permitted. As the Court interpreted Kentucky law and announced these requirements, the decision necessarily impacts all HHR system providers and operations in Kentucky.

“While we are disappointed with the Court’s decision, we do appreciate the clarity that the Court has provided as it pertains to HHR in Kentucky,” commented Exacta Systems President Jeremy Stein. “After several years of litigation, we now have certainty on how HHR systems must operate in the state.”

“In anticipation of this ruling, Exacta has devoted several months of development time to produce an alternate HHR system that complies with the Supreme Court decision,” continued Stein. “After reading opposing legal briefs and hearing the questions asked at oral arguments, we wanted to have an alternative system in place that addressed the objections raised by opposing counsel and the various Justices, as a contingency in the case of a negative ruling. The updated Exacta system is fully compliant with the requirements as articulated by the Supreme Court, and we are excited to present our updated system to the Kentucky Horse Racing Commission in the coming days.”

Churchill Downs Incorporated said it does not use the Exacta system in any of its HRMs in any facility in Kentucky.

“We will work within our legal rights and in coordination with Kentucky legislators to ensure the ongoing legal operation of our HRM facilities in Kentucky so that we can continue to provide critical funding for the equine industry and support the citizens in the Commonwealth of Kentucky,” it explained. “Although CDI does not use the Exacta system in question at any of our HRM facilities, we appreciate Kentucky Governor Andy Beshear’s support of the industry in his statement regarding Historical Horse Racing.”

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