Over the course of the next 50 years, pari-mutuel betting became incredibly popular statewide, but it was not until the 1980s when gambling regulations were extended beyond this type of wagering.ġ988 – 2008 1988 finally saw the state’s Lottery Act passed, while the iconic Kentucky Downs racino (which contains a racecourse and various types of event with slot gaming) first opened its doors on April 22nd, 1990. 1875-1988 Of course, the state remains synonymous with horse racing, and has done ever since the old Churchill Downs site opened its doors in 1875 (this site continues to host the famous Kentucky Derby each and every year).