Money intended to benefit Massachusetts thoroughbred racing sits untapped in the Race Horse Development Fund (RHDF) according to a recent audit conducted for the Massachusetts Gaming Commission (MGC).
The fund was created by the 2011 legislation that authorized gaming expansion in the Bay State, with a share of money from slot machines and table games earmarked to benefit horseracing.
Horse racing is effectively dead in Massachusetts, though there have been proposals to bring it back. The last race was run in 2019. Nevertheless, the fund has grown to $20.53 million.
Auditor Suzanne Bump told the MGC, “While MGC has done a noteworthy job managing the state’s emerging gaming industry, our audit makes clear the commission should bring all relevant stakeholders to the table to consider the Race Horse Development Fund’s most effective use.” Bump added, “This consultation and collaborative effort would enhance oversight of the fund, and would benefit breeders, owners, and the industry as a whole.”
Four-fifths of the fund is set aside for racing purses and the rest to promote horse breeding efforts and health and pension benefits for jockeys.
The audit continued, “As a result of the changes to the industry, spending from the RHDF for thoroughbred horse racing purses has declined while revenue deposited in the RHDF has increased.”
Bump added, “Consequently, the majority of the RHDF cannot be used as intended: to support the Massachusetts thoroughbred and standardbred horse-racing industries in Massachusetts or for any other purpose, and its unspent balance will continue to grow unless the commonwealth takes measures to address the problem.”
Several months ago, the commission approved shifting a larger share of gaming revenues to assist standardbred horse racing, which would get 92 percent of RHDF funds that were set aside for purses, compared to 70 percent in 2020. The commission also noted that its hands are tied by statute to alter the percentages earmarked by the fund.
Several bills are under consideration in the legislature. Some thoroughbred racing supporters have urged putting the money intended for that sport into an escrow account and be used to help revive the industry if, for example, a developer were to propose running live races again.
