The horse racing industry in Maryland seeks aid after slots have ceased to be the solution to their financial problems.
Race Tracks in Maryland Need to Increase their Revenues
The hopes of the horse racing industry about a potential pick up of the business through slots vanished after the last legislative session. Today, the word slots seems to have disappeared from the speech of race tracks managers. Yet, the horse racing industry needs aid. Financial operations are being analyzed by lawmakers. Laurel Park, Rosecroft Raceway and Pimlico Race Course are struggling to prop up their operations. They are studying several measures, such as investing 10 million in bred fund to reward victories by horses from Maryland and perhaps allow night racing.
The president of Maryland Horse Breeder's Association Billy Boniface said that since slots are not a solution anymore they have to compete. The number of races has decreased from 220 to 180 a year. They seek to maximize profits and cut costs. This leaves Maryland without races for 3 months.
The horse racing group Magna Entertainment, owner of Pimlico and Laurel, reported loses of over 105 million dollars last year. Laurel is planning a renovation of the complex, by adding a retail area and restaurants to attract more clients. At this race track the average daily revenues are 160,000 dollars, whereas in states where slots parlors are allowed, revenues are estimated to reach 450,000 dollars.
Actually, a bill had legalized slots in Maryland last year, but when it came to the House the version from the Senate was so different that the two chambers did not agree. This year, there are attempts to put forward a bill allowing 15,500 slot machines at seven different locations, but no one is really pushing the issue.
