VLT revenue leads to growth in Maryland Standardbred breeding industry

by Tom LaMarra, USTA Web Newsroom Correspondent

Ft. Washington, MD — A more stable racing schedule brought about by a share of casino video lottery terminal revenue has led to growth in the Maryland Standardbred breeding industry and an increase in racing dates for 2017.

The number of stallions and mares bred took a major hit as the racing program at Rosecroft Raceway was gradually reduced and then suspended in 2008. The track remained open for full-card simulcasts but closed in 2010. It was purchased by Penn National Gaming Inc. in 2011, and limited live racing returned that fall.

Though PNGI didn’t win its bid for a casino license in Prince George’s County — it went to MGM National Harbor, which opened in December 2016 — it maintained live racing with VLT-funded purses and simulcasting and managed to turn a small profit.

The Stronach Group purchased Rosecroft in the summer of 2016 and signed a two-year agreement with the Cloverleaf Standardbred Owners Association. The breeding industry has begun a recovery, as evidenced by growth in the number of registered Standardbred yearlings and stallions.

“With an increase of number of (eligible) horses, we’ll begin the (stakes season) earlier this year and extend it later in the year to accommodate horsemen,” said Cheri Stambaugh, administrator of the Maryland Standardbred Race Fund.

As of Dec. 31, 2016, there were 124 2-year-old colt pacers registered with the program, with 118 eligible for the MSRF stakes and 48 for the Maryland Sire Stakes, according to fund statistics. Some are eligible for both events.

Other divisions have grown as well: 120 2-year-old filly pacers (113-MSRF and 39-MDSS), 61 2-year-old trotting colts (57-MSRF and 31-MDSS), and 65 2-year-old trotting fillies (57-MSRF and 28-MDSS). It’s certainly progress for a program that has struggled with some small fields that couldn’t be carded as betting races.

The 2-year-old sire stakes last year drew fuller fields, and that bodes well for the 3-year-old races this year. The four divisions will be featured in the first round of finals May 31, closing night of the first half of the Rosecroft meet, with two preliminary rounds earlier in the month.

“We’re hoping to get some of those races on the betting card, especially the finals,” Stambaugh said. “Since the slots kicked in the breeding fund has improved, and I think we’ll have some 2-year-olds that didn’t make it last year racing as 3-year-olds.”

Rosecroft in the fall will offer two sets of MDSS finals for 2-year-olds, with another at Casino at Ocean Downs during the summer. Ocean Downs will host the other round of finals for 3-year-olds.

As usual, all MSRF events will be held at Ocean Downs. The track hasn’t released its racing dates for 2017, but the MSRF and MDSS events are all slotted for Sunday and Monday nights, according to this year’s stakes schedule. Ocean Downs usually races from mid-June through early September.

The Maryland racing industry currently receives six percent of VLT revenue from five casinos and 2.5 percent from a sixth in the western part of the state. For most of 2016 the cut was seven percent, but that dropped a point with the opening of MGM National Harbor, which is located about three miles from Rosecroft.

The state’s Purse Dedication Account earned $51 million in 2016. The Standardbred industry’s cut is 20 percent, which amounted to a little more than $10 million last year.

Rosecroft this year will offer 60 nights of racing with a split season — March 5-May 31 and Oct. 1-Dec. 17. The number of programs is up from 54 in 2016.

The 34-night winter/spring meet will feature three nights of racing: Sunday, Tuesday and Wednesday through April. A special Saturday card on April 15 will replace the April 16 Easter Sunday program.

In May, racing will be held Tuesday and Wednesday nights and two Saturdays: Kentucky Derby Day (May 6) and Preakness Stakes Day (May 20).

First post is as follows: 4:40 p.m. Sundays; 6:40 p.m. Tuesdays, Wednesdays, and April 15; and 7 p.m. May 6 and May 20.

The first qualifiers for the upcoming meet are set for Feb. 25.

There will be 26 programs during the fall/winter meet with racing on Sundays and Tuesdays; Wednesday (Nov. 22); and two Saturdays — Oct. 21 and Nov. 4, second day of the Breeders’ Cup World Championships. Post times for the meet are not yet official.

The Maryland Jockey Club, which is owned by The Stronach Group and operates Rosecroft, hopes to build on the goodwill that began last year.

“We’re looking forward to our second meet there,” MJC president and general manager Sal Sinatra said. “We took a shot increasing the number of days by about 10 percent for this year, and we’re hoping to keep the same number of races. Last fall we had 12 or 13 races a night.”

Rosecroft for several years has assigned Maryland preferences to just about every race. There were discussions about opening up some races to attract different stock and perhaps “share horses” with neighboring Delaware, but the MJC left the decision on preferences up to the Maryland horsemen, Sinatra said.

Sinatra said the late-afternoon post time on Sundays “is an effort to get more people in the building” on a weekend night. The first part of the live card will dovetail with the latter part of many simulcast signals, and there are plans for family-priced Sunday buffets in the clubhouse dining room, he said.

The sire stakes finals, Stambaugh and Sinatra said, have been scheduled to create “big event” programs that hopefully will attract more owners and patrons.

The MJC invested in a new video toteboard and paddock improvements before last year’s fall meet, and hopes to make some facility improvements as well. Last fall, with the blessing of the horsemen’s group, Rosecroft carded the $100,000 Potomac Pace for some of the top older pacers in the country, and plans to do so again this year.

“I think the public and the horsemen really enjoyed having that race,” Sinatra said. “We’re learning as we go. It’s a work-in-progress at Rosecroft.”

The complete schedule of MSRF and MDSS stakes for this year is available here.

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