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Lawmakers in Maryland have weighed a proposal to revitalize Pimlico Racetrack in Baltimore and its surrounding area. While some proponents highlight the economic benefits, others are concerned about ongoing costs.
House Bill 1524 seeks to formalize a framework agreement negotiated between a nonprofit state racing authority and the Stronach Group, the Canadian owner of Pimlico and Laurel Park, as well as rights to popular races. The legislators must agree upon the bill and send it to the desk of Gov. Wes Moore before midnight on April 8.
If the bill is approved by the Legislature and signed, the state would buy the historic venue for $1 from the Stronach Group, which operates in the state as the Maryland Jockey Club brand. The nonprofit group would assume the Jockey Club name and lease the rights to host the Preakness and Black-Eyed Susan races. Through the 10-year agreement, Stronach would get an annual payment of $3 million and a 2 percent share of the handle from both races each year.
If the bill is approved, the state’s nonprofit racing authority will use $400 million in bonds to reconstruct the premises and build a new training facility. It will repay the bonds via two funds dedicated to racetrack and community improvements, supplemented by slot revenue from the Maryland State Lottery and Gaming Control Agency.
Ways and Means Chair Vanessa E. Atterbeary sponsors the bill, which marks the Legislature’s fourth attempt in the past five years to improve the condition of the deteriorating Pimlico track.
“There’s not enough profit to justify the investment in the facilities and get the return,” said Greg Cross, an attorney and chair of the Maryland Thoroughbred Racetrack Opening Authority, who believes earlier attempts to improve racing facilities in the state failed because of the dependence on a private company. “We as a state benefit exponentially from the investment. A private operator doesn’t have that motivation.”
According to Cross, the racing industry contributes about $2 billion in direct economic benefits and $1 billion in indirect economic benefits to the state per year. These benefits help support the state’s horse industry and farms.
Still, there are concerns about the plan’s long-term expenditures. Legislative analysts warn that money from a state lottery account may be inadequate to meet the debt obligations.
“We are committed to trying to salvage what we can to make sure that the horse industry is viable in Maryland, but it doesn’t come with a blank check,” said Senate President Bill Ferguson.
Last week, House Bill 1319, also sponsored by Atterbeary, passed through the state’s House of Delegates. The bill aims to legalize online casinos in the state, awarding licenses to brick-and-mortar casinos.
