Harmony, at long last, to extend across breeds in Maryland
Finally—there’s some good news on Maryland racing’s political front.
The signing, in early April, of a 15-year agreement that eliminates longstanding disputes between Thoroughbred and Standardbred interests actually does signify the beginning of a new era within the state.
Although it won’t likely be the key to successful slots legislation—an issue that is driven by forces extending far beyond the racing industry—the new harmony between the breeds should help with that initiative, since legislators tend to look most favorably upon the industry when it displays unity.
Meanwhile, with or without slots, the agreement will allow Maryland’s two major Thoroughbred tracks, Laurel Park and Pimlico, and the larger of its two Standardbred tracks, Rosecroft Raceway, to improve their business plans. Horsemen and breeders associated with the tracks also stand to reap the benefits.
Gone is the nasty battle over cross-breed simulcasting. Rosecroft, which is located in the Washington, D.C., suburbs, within the critical 35-mile radius of Laurel Park, bases much of its business on simulcasts of Thoroughbred races. It has tried various ways to circumvent the requirement (based on various formulas over the past decade) that it pay money to the local Thoroughbred industry for the privilege of using the out-of-state Thoroughbred product. Rosecroft (as well as Laurel and Pimlico) now have unrestricted access to Thoroughbred and harness simulcasts. And Rosecroft will compensate the state’s Thoroughbred industry with a flat fee of $5.9 million annually (to be divided proportionately among the tracks, horsemen and breeders).
No future wars (at least for the next decade and a half) will be fought over division of revenue. If and when slots do arrive, or if the state directs revenue to purses and breeders’ funds in the form of grants or other types of subsidies, the Thoroughbred and Standardbred industries agree to divide the money on an 80/20 percentage basis, respectively.
Off-track betting sites have room to grow. The tracks’ ownership entities are free to develop off-track betting sites, outside the 35-mile radius of competing tracks, without being called upon to share the resulting revenue with each other (except for revenue generated by simulcasts of live races conducted at the in-state tracks).
The agreement also calls for the parties to pursue repeal of the burdensome “6:15 law” that forbids Thoroughbred tracks from conducting business after 6:15 p.m. without the consent of the Standardbred industry.
Maryland Racing Commission Chairman John P. McDaniel promised to take a proactive approach when he was appointed to the post last year, and he has been true to his word. McDaniel brought the various parties together in his Columbia office, where they spent many hours thrashing out this agreement. Everyone concerned, and especially McDaniel, deserves our praise and gratitude.
