A bill designed to remove the uncertainty clouding the horse racing industry in Maryland has passed both chambers of the Maryland legislature and awaits the governor’s signature.
Let’s go through some of the details and analyze what the future holds for the online sportsbooks industry.
Horse Racing Bill Is in the Home Stretch
Both chambers of the General Assembly passed House Bill 1524, which calls for the state to take ownership of the Pimlico Race Course in Baltimore, home of the Preakness Stakes and second leg of the Triple Crown, from the Stronach Group’s 1/ST Racing. The bill also mandates that a non-profit will operate the racing industry in the state.
However, one of the most important aspects of the bill is the $400 million in bonds that will be used to rehab and renovate the iconic Pimlico Race Course. The upgraded layout and amenities will be designed with a younger generation in mind and will hopefully trigger more interest in horse racing as well as boost attendance.
Last year, the legislature created the Maryland Thoroughbred Racetrack Operating Authority (MTROA) to research horse racing’s future in the Old Line State. This organization will now be tasked with setting up the non-profit to actively run the horse racing industry.
MTROA board member, Alan Foreman, said the following about the upcoming renovations at Pimlico, “Horse racing facilities today are outdated and do not attract customers. No one wants to sit in a seat the whole time anymore. A new, iconic facility at Pimlico should bring in a younger generation of fans and allow them to enjoy the entire space.”
What’s Next?
Although the state will take over as the owner of Pimlico, it should be noted that the Stronach Group also owns Laurel Park and will continue to operate it. During Pimlico’s renovations, the Preakness will be held at Laurel, which is only 35 minutes south of Baltimore.
The Preakness is also owned by 1/ST Racing and will be paid $3 million per year by the non-profit to hold the Preakness, Black-eyed Susan Stakes and the festivals that accompany those events. Those events could hold even greater appeal with new operators in place.
We should also note that the Stronach Group did not bid on bringing slot machines to their tracks when they were legalized in 2012 nor were they interested in a retail sports betting license, citing the $1 million licensing fee as being too steep.
However, the bill that was recently passed eliminates the $1 million sports betting licensing fee for the track, which will be another boom to the horse racing industry in Maryland. And in another strategic advance, look for the state to be interested in facilitating more online wagering activities.
“There is not a lot of incentive to generate on-track business,” Foreman said. “That is something we will be looking at closely.”
“Fifty years ago,” Pat McKenna, vice president of communications for NYRA, said, “the sport required fans to be present to wager. Fans are now engaging with horse racing from their home, so the in-person experience is much different in 2023 than in 1973.”
Nevertheless, the aesthetic improvements should create interest and generate greater numbers at an iconic track like Pimlico. The 154-year-old race course should represent the best the industry has to offer and after $400 million in renovations, there is little doubt that it will.
