Kentucky Approves Table Game Mechanics for HHR Terminals

The decision occurred during a special meeting on Tuesday, November 25, 2025. This regulatory update allows operators to deploy machines that simulate roulette, blackjack, and craps, fundamentally altering the visual presentation of Kentucky’s gaming floor.

Expansion of the HHR Rulebook

The KHRGC vote was nearly unanimous. It signals a departure from the regulator’s previous stance. Former KHRGC Chairman Jonathan Rabinowitz stated in 2023 that he would not authorize table game themes for HHR.

The current board reversed that position to prevent market stagnation.

Two specific entities drove this application: Interblock and Exacta Systems. Exacta is a technology subsidiary of Churchill Downs Inc. (CDI).

Their initial request focused on a roulette-themed terminal. However, the commission approved the broader category of electronic table games. This anticipates future applications for poker and blackjack interfaces.

One commissioner, Catherine Parke, cast the sole dissenting vote. She raised concerns regarding the visual design of the roulette terminals. specifically noting the absence of horse racing imagery.

Justin Paul, representing CDI, noted that adding horse graphics is difficult. He explained that Interblock manufactures these terminals for global markets, making custom aesthetic changes for Kentucky challenging.

The Pari-Mutuel Mechanic

Despite the new “casino-style” visual skins, the underlying math remains unchanged. These terminals do not function like Las Vegas table games.

In a standard casino, a player bets against the “house.” In Kentucky, the law mandates pari-mutuel wagering.

The outcomes on these roulette or blackjack screens are determined by the results of previously run horse races.

• Pooling Funds: Players bet against one another, not the operator.

• Historical Data: The spin of the digital wheel or the deal of the cards is a graphical representation of a racing result from the database.

• Compliance: This structure ensures the devices comply with Kentucky statutes, which strictly limit commercial gambling to pari-mutuel formats.

Market Context and Legal History

This approval aims to close the gap between Kentucky and its neighbors. KHRGC officials cited the need to compete with Indiana, where full-scale brick-and-mortar casinos offer live table games.

By adopting these new themes, Kentucky operators can offer a product that looks and feels like a Class III casino game while remaining within the state’s specific legal boundaries.

The HHR sector has faced significant volatility over the last five years.

• 2020 Supreme Court Ruling: The Kentucky Supreme Court ruled that HHR systems were not pari-mutuel and therefore unlawful.

• 2021 Legislative Fix: Lawmakers responded by passing Senate Bill 120. This legislation redefined pari-mutuel wagering to explicitly include HHR, effectively re-legalizing the machines.

Since the passage of SB 120, HHR has become a primary revenue engine for the state’s racetracks. This revenue supports prize purses for live racing events.

The introduction of table game themes represents the next phase of this revenue strategy, designed to retain players who might otherwise travel across state lines for a traditional casino experience.

The KHRGC has not yet confirmed a specific launch date for the new machines. Operators must now secure final technical approvals before the units can go live on gaming floors.