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January 2009
Pennsylvania
Horse Industry revisited

Those of us that have been involved in the breeding and racing industry in Pennsylvania have long anticipated legislative relief to enable farms, trainers, owners and everyone involved in horse racing to continue to exist in a difficult business environment.  We have received such relief, but there could be a far better formula for the use of the funds allocated to racing that result from alternative gaming.  A better formula would provide greater commerce benefiting the state and all of those involved in racing and breeding.

The expansion of racing has caused a shortfall in funding for the Pennsylvania Racing Commissions and this threatens to adversely affect the breeders’ fund.  There is also inadequate opportunity for our Pennsylvania bred and Pennsylvania sired horses to earn a living in the state in the face of ship-ins that are taking more and more of our purse money out of state.  Pennsylvania bred young horses have little value in that they are presented with the dilemma of having to compete with the onslaught of out-of-state horses coming to Pennsylvania to race for the large purses.  This is difficult for any state bred program and it has become increasingly true in Pennsylvania.  The smaller training stables, in particular, are struggling with the same problem.  Making matters worse, as purses have increased to historic levels, wagering on horse racing is decreasing at an alarming rate.

It is a time for a panel of enlightened and interested parties, in collaboration with the Pennsylvania Department of Agriculture and legislative leaders, to begin to address these issues.  The hope would be an outcome enabling money flowing from alternative gaming to create the kind of agricultural commerce that the gaming legislation and those that supported it intended.

January 2009
Maryland begins era of gaming supported racing

In November, Maryland voters overwhelmingly passed the referendum permitting five casinos, with a portion of the gaming proceeds going to purses and breeders incentives.  The infusion of these funds into the horse industry should begin as early as 2011, provided that the impediments to implementation of the proposed gaming facilities can be overcome.

Projections estimate that up to $100 million will be set aside for Thoroughbred and Standardbred racing.  These funds will be divided 80% to Thoroughbreds and 20% to Standardbreds.  Hopefully, when all the casinos are up and running at full capacity the $100 million cap would be reached.  The full estimated racing share will probably take at least five years to become reality.

The state initiative will eventually make Maryland purses competitive with other tracks in the Mid-Atlantic region and give Maryland a breeders program that is second to none. This, combined with the Maryland Million program, will encourage Maryland breeders to foal in the state and breed to stallions that stand in Maryland in 2009.  The two-year-olds from this crop will race beginning in 2012 and will then be able to take advantage of the expanded program.  The gaming incentive should lead to a stabilization of the Maryland foal crop and increase the number of mares bred to Maryland stallions.

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