Louisiana: The Supreme Court declares law authorizing HHR machines unconstitutional in the state

The ruling, issued last week, said that a 2021 law allowing for historical horse racing machines was unconstitutional because it did not require that the machines be approved by voters in the parishes where they would be located. The judges in the case said they agreed with a lower court that ruled that HHR machines were a “new” form of gaming not previously authorized by law, thus requiring local approval under the state’s constitution. 

While a handful of HHR machines are operated by other racetracks in Louisiana, Churchill Downs Inc. had installed the devices at all 13 of its off-track betting parlors scattered around the counties near Orleans Parish, where Fair Grounds is located. Churchill’s casino at the Fair Grounds property in New Orleans operates a mix of other legal gambling devices, including slot machines.

According to public records, HHR revenues provided approximately $6 million in purses to horsemen at Fair Grounds in the most recent fiscal year, or approximately 19 percent of the $31 million in total purses distributed during the 2024-25 meet, which concluded on Sunday.

Churchill could have the option of pursuing local referenda in the seven parishes in which it operates OTBs in order to get approval to operate the HHR devices, an option that the company said in a response to emailed questions “could not be ruled out.” It could also swap out the HHR machines for already legal machines, such as video poker.

“CDI is currently evaluating our product within our OTBs,” the response said.

Ed Fenasci, the executive director of the Louisiana HBPA, said on Thursday that video poker machines provide the highest non-parimutuel source of revenue for purses at Fair Grounds, and he said Churchill could “make up maybe $3 million” of the lost $6 million in HHR money if it swapped in the video poker machines at its OTBs. 

Fenasci said that the horsemen in Louisiana wouldn’t be involved in pressing for local referenda. 

“That’s completely up to Fair Grounds,” he said. “We have no standing.”