1. Helping Kentucky Remain Competitive 1

2. 2 I. The Horse Industry is Important to Kentucky II. The Kentucky Horse Industry is Under Siege from Other States III. Kentucky Can Remain Competitive

4. $758 million from showing horses

5. Direct economic impact of $2.3 billion

6. Approximately 320,200 horses

7. 96,000 jobs

8. 194,000 Kentuckians involved as horse owners, employees and volunteers Source: American Horse Council, Deloitte Consulting LLP, 2005 It’s a statewide industry. Horses permeate the culture of Kentucky from the county fair to the Kentucky Derby and are raced from Prestonsburg to Paducah. 3

10. More than $436 million in purse moneySource: Equibase 4

11. Importance of the Horse Industry to Kentucky The horse industry is a very green industry and leaves the land better than you found it. 5

13. Horse farmers are wonderful stewards of the land.

14. The industry is well-regulated at a surprisingly low cost.6

16. Positions range from entry level to skilled professional.

17. If you are at the top of your profession (equine attorney, accountant, surgeon, etc.) in Central Kentucky, you are at the pinnacle of your peers.

18. Significant economic impact on rural (agriculture, raising horses) and urban (racing) areas of Kentucky.7

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22. 11 If you were Secretary of Economic Development of another state, wouldn’t you be going after this industry? They are. They are spending billions in purse money and breeder incentive awards to compete with us.

23. States competitive with Kentucky are growing their purses and breeder incentive funds with alternative gaming (indicated in red), while Kentucky remains stagnant and in some aspects, in decline. Sources: Thoroughbred Racing Associations, Comparative Study, November 2008; Economic Impact of Slot Machines on Pennsylvania’s Pari-mutuel Industry 2006-2007; 2007 Minnesota Racing Commission Annual Report; The Economic Impact of the Iowa Race Horse Industry on the Iowa Economy, December 2008; New York State Racing & Wagering Board 2007 Annual Report 12

24. States which permit commercial, Indian or racetrack casinos are indicated in red. Source: American Gaming Association website 13

26. States which are considered very conservative, much like Kentucky (Indiana, North Carolina, etc.), allow casino operations.

27. Another major state, Texas, is considering a casino initiative.14

28. Growth of Racetrack Casinos during this Century Racetrack casinos continue to be the primary mode of expansion in the commercial casino industry. State Approved New York 2001 Maine 2004 Oklahoma 2004 Pennsylvania 2004 Arkansas 2005 Florida 2006 Indiana 2007 Maryland 2008 Source: 2008 American Gaming Association Survey of Casino Entertainment 15

29. Kentucky is at a Competitive Disadvantage Kentucky purses have remained stagnant since 2001 16 Source: Kentucky Horse Racing Commission Biennial Reports

30. Kentucky is at a Competitive Disadvantage 17 Source: Thoroughbred Racing Associations

32. Purse money was generated in the traditional way—through handle.

33. Kentucky could effectively compete in this environment because it was “horse vs. horse.” 18

34. Kentucky is at a Competitive Disadvantage 19 Source: Thoroughbred Racing Associations, Comparative Study, November 2008

36. The only “blue” tracks to make the top 20 are Santa Anita, Hollywood (if they survive) and Churchill Downs. Keenelandhas fallen off the chart.

37. Gaming has propelled Philadelphia Park, once irrelevant to the racing landscape, to the top of the list. 20

38. Kentucky Faces an Unprecedented Threat “We are in a fortunate position. We now have a solid foundation to move considerably forward and rival Kentucky in the breeding industry. We have the facilities here, we have the land here, and the right attitude is here.” -- Mark McDermott, Executive Director of the Pennsylvania Horse Breeders Association, “Slots Solidify Pennsylvania Thoroughbred Industry,”Thoroughbred Times, February 2009 In 2006, before gaming, Pennsylvania paid $7.8 million in breeder incentives. In 2008, it paid $23 million. Kentucky’s once prominent Standardbred industry was devastated by out-of-state competition. In 1986, 95 Standardbred stallions bred 2,270 mares. In 2004, 30 stallions bred 680 mares. Source: USTA, KHRA 21

39. What We Can Conclude Of the 12 states closest to Kentucky that engage in horse racing, 11 offer some type of expanded gaming. States include: Arkansas, Illinois, Indiana, West Virginia, Louisiana, Florida, Maryland, Delaware, Pennsylvania, New Jersey and New York. Gaming generates new state revenues while preserving existing jobs and creating new employment opportunities. 22

40. Did You Know? Kentuckians spend more than $650 million at casinos in Indiana and Illinois, and an estimated $800 million at out of state casinos nationwide. Not a change in behavior for Kentuckians. Means for Kentucky to recapture those gaming dollars for the benefit of our state. 23

42. Only one facility located in Lexington, jointly operated by Keeneland and the Red Mile.

43. VLTs would be approved legislatively and operated through the Kentucky Lottery Corp.

44. Bill would generate $700 million in new revenue; $235 million in new tax dollars for the state.

45. Kentucky’s horse industry would be strengthened by increased purses, breeder incentive funds and money for track improvements. 24

47. No involuntary tax increases

48. No large government expenditures

49. No geographic expansion of gaming; menu is simply expandedInvestment will be made by private sector; no government investment or risk. 25

50. Kentucky Can Remain Competitive Kentucky is on the verge of being overtaken by other states. They are out-spending us, they are out-building us, their purses are higher and they are creating new jobs for their citizens. Other state governments recognize the wisdom of spending aggressively to take what we have. Kentucky’s horse industry is worth fighting for. We’re asking you to help us fight back. 26