Kentucky State Representative Matt Lehman has introduced House Bill 39 in response to concerns that computer-assisted wagering (CAW) teams are creating an uneven playing field in pari-mutuel horse race betting. After personally experiencing a situation at Keeneland where a longshot horse’s payout was significantly reduced due to late bets from CAW teams, Lehman aims to ensure all bettors have equal access to wagering pools without preferential advantages such as better pricing, rebates, or faster information. The bill seeks to regulate pari-mutuel pools through the Kentucky Horse Racing and Gaming Corporation to maintain fairness and protect the interests of traditional “retail” bettors.

Lehman argues that while CAW teams contribute billions to the wagering handle, their dominance is squeezing out casual bettors and threatening the long-term health of the horse racing industry in Kentucky. Despite the large sums wagered by CAW, overall pari-mutuel betting in the U.S. has stagnated or declined, suggesting the current model may not be sustainable. Lehman hopes his legislation will spark a broader conversation about balancing technological advances with preserving a diverse and growing betting base, which is vital for the industry’s future success and economic impact in the state.