CDI Sues Horsemen Over Account-Wagering Revenue Dispute

Churchill Downs Inc. (CDI) yesterday in U.S. District Court in Kentucky filed suit against two Kentucky horsemen's groups over the groups' efforts to "gain a larger share of account-wagering revenues," according to Gregory Hall of the Louisville COURIER-JOURNAL. The suit accuses the Kentucky Horsemen's Benevolent & Protective Association and the Kentucky Thoroughbred Association of "violating their contracts" with CDI. The allegations were filed "in an amended complaint to a previously filed" suit against the Thoroughbred Horsemen's Group (THG) and a Florida horsemen's group over a similar dispute at CDI's Miami-area Calder Race Course. The suit claims that the horsemen's groups are "violating antitrust laws, and seeks injunctions disbanding the [THG] and prohibiting the defendants from boycotting racetracks and account-wagering companies that do not meet their demands." The horsemen want "one-third of the takeout from account wagers, which would represent about 7[%] of that handle." The horsemen have said that CDI is "offering 3.5[%], a 0.25[%] increase." CDI has said that the groups' demands would make its TwinSpires.com Web site "unprofitable" (Louisville COURIER-JOURNAL, 5/15).

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