The Budget and Taxation Committee of the Maryland Senate heard discussion March 5 among supporters and detractors of a bill that would authorize up to 4,000 historical horse racing terminals at designated sports wagering locations in Maryland.
The devices would be placed at off-track betting locations and tracks that offer sports wagering, such as the OTB Long Shot’s and Timonium, as well as at the Standardbred facility, Rosecroft Raceway, which is also a bricks-and-mortar sports betting outlet. Laurel Park and Pimlico Race Course do not currently have sports wagering.
Facing opposition from casino interests, Senate Bill 982 and similar legislation, House Bill 1048, would appear unlikely to pass even if the bills receive a favorable report and proceed out of committee.
“It’s not a bill that’s being promoted by the racing industry, and this bill would not, quite frankly, the way it’s written, benefit the racing industry at all,” Alan Foreman, chairman and CEO of the Thoroughbred Horsemen’s Association, told BloodHorse in a telephone interview following the committee meeting.
SB 982 was pitched to the committee by its sponsor, Sen. Paul Corderman, to assist Maryland OTBs that have been negatively affected by declining horse racing handle, out-of-state gaming competition, and limited on-site sports wagering. Most sports bettors prefer wagering via mobile platforms.
The aim behind adding the HHR devices, which resemble slot machines but whose results are based on previously run horse races, is to lure customers to their facilities and supporting restaurants and hotels.
No racetrack operators or horse racing interests spoke during the Wednesday meeting, though representatives from several OTBs were in attendance, as were two spokespersons representing casinos. Supporters of the bill mentioned the potential revenue generated to the state in taxes and the creation of jobs at the OTBs.
“Sports betting for OTBs has been an abject failure,” said Alyse Cohen, owner of Long Shot’s. “Consequently, rising operational costs and decreasing revenues have made brick and mortar OTBs in Maryland unsustainable. We want to survive and moreover, thrive.”
Horse racing handle at OTBs is down for various reasons, among them that horseplayers have shifted toward mobile or at-home wagering.
“But the fact that there’s a decline in betting at the OTBs isn’t a justification for putting HHR machines in there,” Foreman said. “That is something that affects the entire industry and could have a very negative impact if it’s not done right.”
The casinos do not wish to face increased competition from an additional form of gaming. Nor would a shift in gaming revenue necessarily benefit the Maryland Thoroughbred industry. In 2022, video-lotttery-terminal (or slots) gaming contributed approximately $55.4 million, or 81.9%, to the Maryland Thoroughbred purses in supplements. According to Foreman, the support from casinos is higher today, reaching between $60 and $70 million.
