To some extent they have. At least for the KYSS, Breeders, etc. I'd like to see what's happened to overnight purses, other stakes, etc. I think the KY money is for KY races so to speak, so open stakes races and GC stakes may not get monies allocated. I don't know.
Last time they had a horsemen's meeting at the Red mile, and unless it's changed since then, they said the KY State law dictated that 91% of the HHR monies were returned to bettors. The "house" pays 1.5% tax on the dollars bet. The remainder goes to the tracks as well as the T-bred and standardbred development funds. There's your KYSS, breeders, etc. purses.
In 2020, there was a KY Supreme Court ruling on whether these machines were "pari-mutuel wagering" and that brought about a change in the monies and how they were distributed. I don't know the impact that had. But, it's interesting that wherever CDI purchased a track, opened a new facility for HHR's, whatever they did-----purses went up big time! Look at Turfway Park. So, to answer your question, why not the Red Mile-----at least to the extend of overnight races-----I'd like to know too!!!