Nevada books OK’d to take bets for Kentucky Derby

Nevada horse racing enthusiasts will be able to bet on the Kentucky Derby in Nevada sportsbooks Sept. 5 because of regulatory amendments unanimously approved Thursday by the Nevada Gaming Commission.

The commission’s decision to allow sportsbooks to apply for permission to pay winning wagers for horse and other animal races if a race is nationally broadcast and the telecast is shown at the book was squarely aimed at allowing Nevada sportsbook operators to take wagers on the Kentucky Derby.

The Derby, the most famous of the Triple Crown horse races, normally is run in May, but was postponed until Sept. 5 because of the coronavirus pandemic.

Nevada sportsbooks faced the prospect of not being allowed to take wagers on the race because of a contract dispute with Churchill Downs, home of the Derby. The reason: In order to take action on the race, books are required by regulation to depend on results provided by licensed disseminators.

The amendment to the regulation provides a revision that allows books to rely on nationally televised broadcasts for results.

Although a solution has been reached that will permit bets on the Derby, the issue is far from over.

The commission’s action is in effect immediately but ends its Nov. 19 meeting date.

In the meantime, the commission hopes to conduct workshop meetings to craft a regulatory amendment for a permanent solution.

The need for a workshop was raised because the commission received in the past three days several comment letters taking opposing sides on the amendments.

The commission first received letters of support from attorney Marc Rubenstein on behalf of the Nevada Pari-mutuel Association and Barry Lieberman of the South Point. They were followed by a sharp rebuke from Todd Roberts, president of Nevada Disseminator Service Inc., who said the amendments meddle in negotiation issues between commercial enterprises, harm the disseminator industry and would result in “wagering scams” involving past-posting because of tape delays of broadcasts.

“Past-posting” refers to placing wagers after an event has begun. Roberts said he was concerned that bets could be placed after a race’s post time.

“Past-posting will become an enormous problem for all involved,” he wrote.

Commissioners said they were disappointed by the late flurry of letters since the amendments were first posted July 23 and were the subject of a Gaming Control Board meeting Aug. 12.

Commissioners opted to put a sunset provision in the amendments that allow for betting on the Derby while providing a means to determine a permanent solution in the regulation.

“We want to be able to bet (on the Kentucky Derby), but we also want a workshop,” Commission Chairman John Moran said.

He added that he understands the differing points of view of the Pari-Mutuel Association, the disseminators, the sportsbooks and Churchill Downs and that “the only thing harder would be bringing peace to the Middle East.”

New meetings on amendments to regulations are expected to be scheduled in the next few weeks.

“Roll up your sleeves and get ready to have some workshops,” Moran said after the vote.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.