Democratizing The Derby: How The RACE Act Could Change The Face Of Horseracing

By Tommy Wilson | Saturday, 04 May 2024 10:15 PM
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Democratizing The Derby: How The RACE Act Could Change The Face Of Horseracing
Image Credit : Kentucky Derby Official Website

In a move that could revolutionize the horseracing industry, Kentucky Republican Representative Andy Barr has proposed a bill that would make it easier for the average investor to own shares in thoroughbred racehorses.

The legislation, known as the RACE Act, was unveiled just days before the 2024 Kentucky Derby and aims to simplify the registration process at the Securities and Exchange Commission (SEC).

The Daily Caller was the first to obtain a copy of the proposed legislation, which also seeks to amend the Securities Act of 1933. The amendment would automatically approve offering statements filed with the SEC for certain securities issued under Regulation A Tier 2.

The RACE Act is designed to democratize the ownership of racehorses, making it accessible to everyday Americans, not just the super wealthy. This year's Derby will see a horse owned by 2,500 investors compete, giving these investors a stake in the race's winnings. Barr's bill aims to make such shared ownership more commonplace.

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In a statement to the Caller, Barr explained the rationale behind the legislation. "The RACE Act is a critical step towards revitalizing the horseracing industry by creating a more accessible and efficient pathway for investments," he said. "This bill will help companies increase their ability to raise capital, allowing them to innovate, grow, and bring new opportunities to racing enthusiasts. By reducing the regulatory hurdles, we’re democratizing and preserving the legacy of horseracing for future generations.”

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The President and CEO of the National Thoroughbred Racing Association, Tom Rooney, expressed his support for the RACE Act. He told the Caller, “The Regulation Advancement for Capital Enhancement (RACE) Act presents a common-sense solution to modernize racehorse ownership, acknowledging the growing diversity of owners, and opposes penalizing individuals and companies interested in fractional participation due to excessive federal regulations. I express my gratitude to Congressman Andy Barr for his leadership on this crucial issue and continued support of our cherished sport.”

Barr is expected to attend the Kentucky Derby over the weekend, where the impact of his proposed legislation will be keenly felt by the horseracing community.

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