Idaho court: Instant horse racing illegal

BOISE - Idaho's highest court says the state must enforce legislation banning lucrative instant horse racing terminals after ruling that Gov. Butch Otter's veto of the bill was invalid.

The decision is a blow to Idaho's horse racing industry, where officials have pleaded that the machines are vital to keeping their businesses afloat.

In a unanimous decision issued Thursday, the court ruled that the ban must go into effect because Otter did not complete the veto within the required five-day time span. In Idaho, a bill automatically becomes law - even if the governor doesn't sign it - unless it is vetoed within the legal timeframe.

"This pivotal decision reaffirms that even Idaho's highest elected officials must follow the Constitution," said Coeur d'Alene Tribal Chairman Chief Allan. The Coeur d'Alene Tribe filed the lawsuit against the state, prompting the court's ruling. "It's really too bad that a lawsuit was necessary to confirm this, but we are extremely happy with the result."

The court also added that Secretary of State Lawerence Denney must certify the law, which will make the machines illegal. There are currently about 250 machines installed in three locations across Idaho. The court also awarded the Tribe costs and attorney fees.

Otter issued a statement Thursday maintaining his actions were legal.

"I stand by my word as well as my earlier decision to veto this legislation. It is clear the Senate took up my veto and voted to uphold it. While I disagree with today's ruling, I will continue working toward a solution that ensures a viable live horse racing industry in Idaho," Otter said.

Doug Okuniewicz, manager of the Greyhound Park in Post Falls, said the news was devastating to his business. He was encouraged to hear the governor plans to address the issue further, but he had not heard from the governor's office as of Thursday afternoon.

"We are still kind of letting it soak in," he said, adding nobody is sure when the ruling will take effect. "We've been in contact with the gaming commission and they will talk with the attorney general about that."

Okuniewicz said when Greyhound Park is told to turn its 35 machines off, it will comply.

He said his company was not prepared for the ruling because the Supreme Court had already ruled that the Tribe had no standing to file suit. However, the court took up the case anyway.

"Normally when the court rules that a party has no standing, that is the end of it," Okuniewicz said, adding the ruling was particularly painful because the courts didn't determine the legality of the machines in its ruling. "This was a technicality and it stuck."

Known as instant horse racing, the machines allow bettors to place wagers on prior horse races with no identifiable information. The machines have spinning wheels, sounds and animations that mimic slot machines.

Horse track owners in three locations invested millions to purchase and install the machines with hopes of boosted profits soon after the machines were legalized in 2013. If the machines were banned, horse track owners warned, they would be forced to close.

Yet lawmakers passed the legislation banning them earlier this year with supermajority approval in both chambers after critics argued the machines were essentially slot machines, which are illegal under Idaho's strict anti-gambling laws.

However, once SB 1011 - the bill outlawing the machines - reached Otter's desk, the governor delayed releasing his decision, doing so after the five-day window had passed. Otter says he put off announcing the veto so he could talk to lawmakers over the Easter weekend about his decision rather than having lawmakers find out in the press.

The Idaho Senate then failed to override the governor's decision on a 19-16 vote. Instead, three statements were entered into the Senate journal that day - submitted by Senate President Pro Tem Brent Hill, Minority Leader Michelle Stennett and Secretary Jennifer Novak - stating that the Senate failed to receive the governor's veto by the required deadline.

Thursday's decision pointed to the statements and Senate journal as key pieces of evidence proving Otter improperly submitted his veto.

"The Deputy Attorney General would apparently have us believe that the governor timely returned the original of the bill to some phantom senator, who gave the bill back to the governor, and then the governor later returned the original of the bill to the Senate Pro Tem," the court wrote. "There are certainly no facts supporting that fantasy."

Denney did not immediately return calls from The Associated Press on if and when he will certify SB 1011.

"We are currently reviewing all of our options and assessing the significant impact that complying with the court's order will have on the immediate and long-term future of Les Bois Park," said John Sheldon, president of Treasure Valley Racing, which operate the Boise-based horse track.