Operators in Pennsylvania horseracing industry are hoping the state’s lawmakers come up with a plan to shift money from other sources to the State Racing Fund, the portion of revenues from the tracks set up to fund oversight and regulation of the industry.
Because of a whopping 71 percent decline in attendance at state horse tracks since 2001, the fund can no longer support the oversight of the industry, prompting Governor Tom Wolf to warn that he may need to shut down the industry as its current season winds down.
In 2001, the racing fund had more than $31.8 million to oversee operation of four racetracks. Now, although there are six tracks, the fund is down to $11 million. Authorities estimate it costs $20 million to oversee the tracks for a year.
“We’re looking at a $9 million deficit, said Wolf spokesman Jeff Sheridan in an interview with the Scranton Times-Tribune. “The bottom line is we do not have the resources as it currently stands to maintain the integrity of the fund without a change to the overall funding mechanism.”
Late last week, state lawmakers were scrambling to do just that. A bill passed the state Senate and was pending in the House that would transfer an estimated $11.3 million from the state Race Horse Development Fund, which is the portion of casino slot revenues set aside for track purses and breeding costs, to the State Racing Fund. That would allow the industry to operate through the rest of the year while a more permanent solution is sought.
Proponents say the amount needed to keep the industry operating is relatively small compared to the $250 million a year in slot revenues devoted to horse racing. Currently, the State Racing Fund draws from track wagering taxes, license fees, admission taxes and uncashed tickets.
At press time, the fund fix was pending in the House, but operators were not worried that the situation will impact racing this year.
