Crisis Averted: MA Legislature Makes Horseracing Legal Again After Snafu

In the midst of the chaotic final day of the 2018 legislative session, the Massachusetts legislature believed it had successfully approved a bill that would extend the legality of horse racing and simulcast racing in the state for an additional year.

They were mistaken.

Despite the passage of the bill, H 4809, by both chambers on Tuesday, a procedural mistake prevented it from reaching the governor’s desk for signing into law.

On August 1, 2018, horse racing was prohibited in the state of Massachusetts.

Emergency session time

Thankfully, the illegality of horse racing didn’t last long.

Just hours before the scheduled races at Plainridge Park were about to commence, lawmakers convened an informal session on Thursday morning to rectify the problem they had created.

According to Chip Tuttle, the Chief Operating Officer of Suffolk Downs, if they hadn’t taken action, 90 simulcast employees and more than 200 live race workers would have lost their jobs.

How this became a problem

Regrettably, the practice of granting year-by-year extensions has become a common occurrence in Massachusetts.

As Massachusetts endeavors to plan its horse racing future, the uncertainty persists as long as the state continues to grant extensions for simulcast agreements at Plainridge Park Casino, Raynham Park, and Suffolk Downs.

The Massachusetts Thoroughbred Horsemen’s Association (MTHA) claims that these extensions are responsible for keeping Suffolk Downs, one of the facilities, operational. The organization argues that there is little chance of obtaining fresh horse racing capital until the facility eventually shuts down.

Massachusetts horse racing is in the midst of a revival

Just a short while ago, it appeared that the Massachusetts horse racing industry was on the brink of extinction.

In 2001, Massachusetts organized a total of 1,526 thoroughbred races, spread out over a span of 179 racing days. However, by 2015, the number of races had dramatically decreased to only 36, taking place within three racing days.

During that period, two out of the three tracks in the state transformed into venues primarily focused on simulcast events.

• In 2008, live racing at Raynham Park came to an end.
• Due to its inability to secure one of the state’s casino licenses, Suffolk Downs now only hosts live races on three weekends annually.

Plainridge Park is the sole racing facility in the state, boasting the title of Massachusetts’ only active harness racing track. In addition to its racing prowess, Plainridge Park made history in 2015 by becoming the first casino in the state.

Casinos have been a boon for racing

Plainridge Park has benefited from casino gaming in two significant ways.

Initially, the casino successfully boosted the number of visitors walking through its doors and introduced a fresh source of income.

In addition, the Race Horse Development Fund received $15 million in the previous fiscal year, thanks to the 2011 Massachusetts legislation that sanctioned casinos and allocated 18 percent of the gaming revenue to the fund.

The local press has detailed the positive impact of this injection of funds, highlighting how it has breathed new life into racing at Plainridge Park.

Plainridge Park Casino has increased its number of racing days from 80 to 125. In addition, the purses have seen a substantial increase, rising from $2.6 million in 2014 to $7.4 million in 2017. The live racing handle has more than doubled, going from $7.6 million to $18 million. Furthermore, the annual registered yearlings, referring to one-year-old standardbred horses, have seen an increase from 36 to 51.

When MGM Springfield opens later this month and Encore Boston Harbor opens in June 2019, the funds in the RHDF are expected to significantly increase. This will also bring about expanded opportunities for horse racing in the state.

Enter the Stronach Group

Thoroughbred racing in the state remains scarce, despite Plainridge’s notable success.

The Stronach Group aims to change that by being the sole entity.

Initially, the Stronach Group had set its sights on Raynham Park. However, the company has shifted its attention towards the establishment of a thoroughbred track in Lancaster, a town located in north-central Massachusetts, just beyond the confines of the Route 495 belt.

On Monday night, Tim Ritvo, the COO of Stronach, held a town hall in Lancaster where he addressed numerous questions and concerns raised by the local community. However, before shifting its focus towards persuading the town, the Stronach Group must first convince the state to take necessary action.

In order to proceed with investing in Massachusetts, the Stronach Group has consistently emphasized the requirement of Suffolk Downs’ closure.

In order for that scenario to occur, the state must revoke its recently extended simulcast license and enact fresh legislation.

President Bill Lagorio of the MTHA stated in 2017 that for the proposed legislation to be effective, it would be necessary to revoke outdated racing laws and grant the Massachusetts Gaming Commission more extensive authority to supervise and allocate funds from the Race Horse Development Fund.

The discussion is still ongoing, but currently, Massachusetts lawmakers can feel relieved as their mistake on Tuesday did not lead to a crisis.