Churchill sues more horsemen in wagering dispute

[Qbins Missile Crisis]

Churchill Downs Inc. filed a lawsuit in federal court today against two Kentucky horsemen’s groups regarding their efforts to get a larger share of account wagering revenues.

The lawsuit accuses the Kentucky Horsemen’s Benevolent and Protective Association and the Kentucky Thoroughbred Association of violating their contracts with Churchill. The lawsuit also seeks to disband the Thoroughbred Horsemen’s Group, which the Kentucky groups have named to negotiate on their behalf in account wagering.

The allegations against the Kentucky groups were filed in an amended complaint to a previously filed suit against the Thoroughbred Horsemen's Group and a Florida horsemen's group over a similar dispute at the racetrack company's Miami-area Calder Race Course.

The lawsuit claims that the horsemen’s groups are violating antitrust laws and seeks injunctions disbanding the Thoroughbred Horsemen’s Group and requiring that the defendants not boycott racetracks and account wagering companies that do not meet their demands.

The horsemen’s groups have blocked races from Churchill from being made available to major account wagering companies, like Churchill’s TwinSpires.com, in an effort to get a larger share of online and telephone betting revenues. Churchill says the demands by the horsemen’s groups would make TwinSpires unprofitable.

The lawsuit was filed in U.S. District Court for the Western District of Kentucky in Louisville. Shares of Churchill Downs Inc. closed at $46.10 in Nasdaq Stock Market trading, off 2 percent.

By Gregory A. Hall
• The Courier-Journal
• May 14, 2008