FRANKFORT, Ky. (LEX 18) — Congressman Andy Barr is hoping to pass a bill that would help the horse racing industry grow.
The RACE Act, the Regulation Advancement for Capital Enhancement Act, would bring more everyday people into the sport by allowing them to own small shares of racehorses.
"That dream of ownership of a horse is pretty elusive for most people. It's viewed as only a game for the wealthy. A way to democratize race horses is the RACE Act, which would allow more microshare ownership into these racehorses," Barr said.
According to Barr, the bill streamlines Securities and Exchange Commission (SEC) registration requirements.
"By simplifying these rules, the RACE Act will allow companies to more easily securitize ownership in thoroughbred racehorses—opening the door for everyday Americans to invest in and support this iconic American industry," a press release from Barr's Office noted.
"What we want to achieve for our signature industry is to bring a new generation of fans and investors into this beautiful sport and this industry," Barr told LEX 18 News at the Derby.
Barr describes the legislation as a "pro-growth bill aimed at expanding access to capital for the thoroughbred racing industry."
He believes the bill approach creates a win-win situation. The horse racing industry gets more access to capital, which will help the sport grow, while everyday people gain access to become part of an industry that was previously out of reach.
"The fact is if people are no longer just casually invested by betting on these races, but actually owned a small piece of these beautiful animals, then you'd have even more excitement out here," Barr said.
Barr believes this investment model could transform the industry's future.
"If you think about it, a racehorse is a small business. And if more people can own a share of that racehorse, including retail and small investors, you're going to get more capital, more investment into the sport of thoroughbred racing. You're going to bring in more fans and more tied in fans, more connected fans, more emotionally connected fans. That's good for our industry," Barr said.
