Legislation that would loosen access to capital improvement funds and in turn strengthen live Standardbred racing guarantees continues to progress through the Maryland General Assembly.
The bills deal with the Racetrack Facility Renewal Account, which is funded by 1% of the revenue generated by video lottery terminals at five of the casinos in the state. Under current statute, the applicant must provide matching funds to get the capital improvement money. Senate Bill 762 and House of Delegates Bill 1598 would allow a racing licensee to receive funding without a match if it agrees to conduct live racing in the state for at least 10 years after the required construction is completed.
The Senate bill, with some minor amendments, passed on second reading unanimously March 19 and is headed for a final reading. The House bill was heard in the Appropriations Committee March 18 and is expected to receive a favorable designation.
The bill focuses on Rosecroft Raceway and Ocean Downs Casino. For any year that funding is provided, Rosecroft must conduct a minimum of 60 live racing programs and Ocean Downs 40 programs unless otherwise agreed to by the racing licensee and the Cloverleaf Standardbred Owners Association.
If a racing licensee elects to expend RFRA matching funds, it must spend at least $300,000, which can include the matching funds. If a racing licensee receives a grant for capital construction without expending matching funds and fails to conduct live racing for at least 10 years, the Maryland Racing Commission can recapture the RFRA funds.
Standardbred representatives spoke in support of the legislation during the March 18 hearing.
MRC member Bobby Lillis, who said he was speaking as a resident of Maryland, told the committee the measure would help two Standardbred tracks get much-needed renovations.
“Harness racing in Maryland supports almost 3,000 jobs and adds over $2 million to Maryland’s economy,” Lillis said. “The direct impact triggers another $70 million in added value and about 700 jobs from indirect and rippling effects. Harness racing in Maryland also supports tens of thousands of farmland acres to grow crops and provide green space for the horses to graze, train and grow Maryland’s agribusiness.”
Rosecroft and Ocean Downs are ship-in facilities, so most of the horses are housed at farms and training facilities.
Delegate Ben Barnes, who chairs the Appropriations Committee, asked about the status of Rosecroft, which is owned by 1/ST Racing (The Stronach Group). The company tried to sell the property in 2022, but the deal fell through after due diligence.
Lisa Watts, director of operations at Rosecroft, said she has been at the track for 40 years and worked through 11 sales of the facility. She also is involved in statewide industry equine organizations of all disciplines.
“What this bill does is create stability,” Watts said. “There are significant opportunities for the Rosecroft property (in the overall horse industry) to expand upon what we do.”
The Rosecroft property, part of which is not used for racing activities, is about 125 acres. The track works with Prince George’s County to host various events throughout the year and also hosts boxing matches and championships.
Watts and others in the equine industry are working to finalize the Maryland Horse Industry Strategic Plan, which is being developed in part from a survey that was taken by about 375 people. A steering committee comprised of representatives from various equine organizations will meet in late March.