(LEX 18) — U.S. Congressman Andy Barr introduced a new bill that he believes will help secure the future of thoroughbred horseracing.
The Regulation Advancement for Capital Enhancement Act of 2024, known as the RACE Act, simplifies the registration process required by the Securities and Exchange Commission (SEC). Barr believes that will "increase the ability of innovative companies to securitize thoroughbred racehorses, allowing everyday Americans to partake in the industry."
Barr says the goal of the bill is to "democratize" horseracing and bring "every-day, ordinary investors into this sport."
"This bill will help companies increase their ability to raise capital, allowing them to innovate, grow, and bring new opportunities to racing enthusiasts," said Barr. "By reducing the regulatory hurdles, we're democratizing and preserving the legacy of horseracing for future generations."
"This is going to attract new fans because, right now, if you're a fan of a horse, you can bet on that horse, but you can't own that horse," he added. "Now, every day, average, retail investors can actually have the dream of winning the Kentucky Derby and that's going to bring more money, more investment, more resources, and more fans to this great sport."
Leaders at companies like MyRacehorse.com are in favor of the legislation.
Michael Behrens, the founder of the company, believes the RACE Act will make it easier for them to "offer investment opportunities and grow the sport of horseracing."
"By streamlining the process for registering horses to be issued, the bill will enable companies to bring products to market faster and with less regulatory uncertainty," said Behrens.
"This sport needs to get fan engagement, right? I think this is a sport that is looking for a new way to get fans to be participatory," he added. "The gaming is fun, the competition is fun. But there's nothing like owning a racehorse."
