Massachusetts Horse Racing Industry: Suddenly A Hot Topic

Horse racing is often framed as an industry in decline. While that may be true in large sections of the country, interest in horse racing is going through a revival in an unlikely place: Massachusetts.

You can trace the renewed interest in Massachusetts horse racing to the state’s 2011 casino law that includes a healthy stipend for the horse racing industry. That stipend coupled with the state’s lack of operational racecourses has made Massachusetts an appealing target for racing investment.

That’s not surprising considering the racing stipend was more than $1.5 million in August alone and should approach $20 million annually with the opening of Encore Boston Harbor.

A Calculated Plan or an Unexpected Benefit?

The 2011 Massachusetts casino law earmarks 18% of gaming revenue collected at Plainridge Park (Category 2 casinos), and 2.5% of casino revenue from Encore Boston Harbor and MGM Springfield (Category 1 casinos) for the Race Horse Development Fund.

The stipend is used to fund purses and benefits for horsemen, and its presence has led to a surge in live racing days and live racing handles at Plainridge Park.

Helping existing venues is precisely what the stipend was intended to do.

“Harness racing is thriving at Plainridge Park Racetrack in Plainville, where we have live horse racing 110 days a year,” Martin Corry, a lobbyist for the Harness Horseman’s Association of New England, told the Committee on Consumer Protection and Professional Licensure in July. “That’s 110 days a year and the Race Horse Development Fund, which is specifically geared to live horse racing and the purses that are going to support live racing, is doing what it’s supposed to do: increasing the value of the horses, increasing the quality of the races and encouraging investment in breeding in Massachusetts.”

But the extra money flowing into horse racing is also having another consequence.  It’s sparking interest in new racing venues. Whether that was the intent of lawmakers when they earmarked a significant chunk of casino revenue to horseracing is unclear, but there’s no denying that without that stipend, no one would be looking to open a racetrack in Massachusetts.

The Current Proposals Run the Gamut

It’s not easy keeping track of the horse racing proposals that floated in recent years, but the three most interesting ones are listed below.

The Stronach Group

The Stronach Group was the first to propose a new thoroughbred racecourse in the Bay State. The project initially would have been located on the site of the old Raynham Park greyhound racing venue. The proposed site was later moved to the town of Lancaster.

Rowley, Massachusetts

The Rowley Group LLC is seeking to develop a $60 million facility alongside the state’s Thoroughbred Horsemen’s Association in Rowley, Massachusetts.

“If the town and its residents accept it, it will be a great benefit for the town because the money it would be receiving through the simulcast wagering could run up to $1 million.” Said John Grossi, the managing member of the Rowley Group.

Another Racino?

A local group has pitched a $300 million Racino in the city of Wareham, in southeastern Massachusetts. That region’s gaming license has yet to be awarded, but the project would require a change in the Massachusetts casino law, as the casino license for the region is a Category 1 destination casino, and not the Category 2 slots parlor proposed by developer Tom O’Donnell.