Below is a screenshot of how gambling interests describe instant racing machines. Even though anyone can see that these machines are little more than an extension of slot machines, gambling interests continue to describe them as “pari-mutuel betting”.
Below is a memo that outlines the case against instant racing machines. This is a great read to become more educated on the topic of instant racing machines, how they work, and how the are different from conventional horse-race betting.
Nearly two-thirds of gambling addicts at Maryhaven, an addiction-treatment center in Columbus, Ohio, point to Internet cafe gambling as the root of their problem. Internet cafes, officially banned but up for referendum vote in November, allow players to buy time on machines that feel like real poker or slot machines. The problem that many problem gamblers find is that they are often so much closer than a real casino, thus making them more tempting. Unlike casinos, which have to give a portion of profits back to the community by law, these machines benefit only the operator. Internet cafes have all the same addictive qualities as a casino, but are much more convenient and easy to access, which is why this Columbus Dispatch editorial calls for their permanent ban from the state of Ohio.
Internet cafes are becoming increasingly popular, with more and more opening up in malls and gas stations. However, there is more than just web-surfing available at these cafes- many are home to illegal gambling in the form of computers that are made to look, sound, and feel like slot machines. Players buy time on these machines and use them until their time is up. The problem, state officials say, is that states do not collect tax revenue on winnings from these machines, which is why many states are beginning to more aggressively target these cafes, called “Internet sweepstakes cafes”. Unfortunately for states, as this USA Today story explains, these cafes are harder to shut down than they thought.
In a unanimous opinion, the Kentucky Supreme Court ruled Thursday that the Kentucky Horse Racing Commission has the legal authority to regulate wagers on previously run horse races presented on electronic gambling machines, called “instant racing machines” — but that the legality of the wagers themselves has yet to be established. These machines are similar to slots in a regular casino, but are often found at race tracks. The court said the case must go back to Franklin Circuit Court, where it originated, to determine whether this is a legal form of gambling. Below is a copy of the majority opinion in the case.
KY Opinion Affirming and Reversing Instant Racing Machines
In addition, below is a copy of the oral arguments in the case. Both pieces are great to read if you want to learn more about Instant Racing Machines.
Internet sweepstakes cafes are popping up all over the country. One of the highlights from the article below is a quote from someone making big money in the sweepstakes industry on his customer base: “Lower-income customers are coming in because they’re bad at math…It’s like the lottery. The lottery is a tax on people who are bad at math. They’re coming in to try and catch a big break.”
This February 2010 article from North Carolina’s Independent Weekly highlights the fact that sweepstakes cafes are flourishing in the state – particularly in low-income and minority neighborhoods.
To circumvent existing state gambling laws, gambling interests are pushing “Instant Racing Machines” or what are also called “Historic Racing Machines.” They are simply just slots by another name. The short brief below includes an excerpt from a recent Wyoming Supreme Court decision opposing the machines.