House Bill 39, introduced by Representative Matt Lehman, seeks to address the growing disparity in pari-mutuel betting at Kentucky racetracks caused by large computer-assisted wagering (CAW) operators. These entities use advanced algorithms and high-volume, last-minute bets to influence odds and payouts, disadvantaging casual bettors. The bill mandates equal access to betting pools, prohibiting preferential treatment such as rebates, special information, or technological advantages, aiming to create a fairer wagering environment for all patrons.

Lehman emphasizes that while CAW contributes significantly to betting volumes and supports the industry financially, its dominance risks squeezing out the middle-tier casual bettors, threatening the sport’s long-term popularity and sustainability. With national thoroughbred wagering stagnant since 2019 and down from 2005 levels, the bill proposes reforms to balance fairness with economic viability. Meanwhile, Kentucky continues modernizing its gaming offerings, exemplified by the 2025 approval of electronic table-game themes within the Historical Horse Racing system by the Kentucky Horse Racing and Gaming Corporation.