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Racino
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A racino is a combined horse racing track, or other live parimutuel betting facility, and casino. In some cases, the casino gambling is limited to slot machines or video lottery terminals, but many locations also offer table games such as blackjack, poker, and roulette. As of the end of 2023, there were approximately 50 racinos operating in the United States.[1] Racinos operate in other countries, including Canada and France, as well.[2]
History in the United States
[edit]Beginning in the late 1970s, the popularity of horse racing began to decline in the United States, as evidenced by the inflation-adjusted decline in wagering by 52 percent from a peak in 1977 through 2006.[3] This decline in wagering occurred despite efforts to increase parimutuel wagering through initiatives such as off-track betting and advance-deposit wagering.[3] The decline is generally attributed to the introduction and growth of casino gambling and lottery gaming.[3]
In 1990, West Virginia authorized the installation of several hundred video lottery terminals at Mountaineer Park as part of a pilot program that eventually became law in 1994.[4]
In 1992, in response to the opening of the Foxwoods Native American casino nearby in Connecticut, the Rhode Island legislature passed a bill permitting electronic gaming devices at the state's two parimutuel wagering venues, Lincoln Greyhound Park and Newport Jai Alai.[5]
An early success story was the mid-1990s turnaround of the Prairie Meadows racetrack, in Polk County, Iowa. Prairie Meadows, which opened in 1989 but went bankrupt by 1991, was bought by the county government in 1993.[6] As reported in a January 2003 study for the Massachusetts State Lottery Commission:
In 1994, Iowa voters authorized slot machines at Iowa racetracks (including Greyhound tracks). Polk County spent an additional $26 million to convert the Prairie Meadows clubhouse into a casino and install 1,100 slot machines. On April 1, 1995 the slot casino (or "racino") opened for business. In the 12 months ended March 31, 1996 machine revenues totaled $119.3 million, enabling Polk County to pay off the $27 million bond issue that paid for the clubhouse casino conversion within that initial year and retire the track's initial $38.8 million bond issue 17 years early.[6]
Other states followed suit. Delaware authorized racinos in 1994, and Louisiana and New Mexico in 1997.[1] A number of larger states also enacted enabling legislation, including New York in 2001, Florida and Pennsylvania in 2004, and Ohio in 2011.[1] Most recently, Illinois and Nebraska authorized race tracks to seek casino licenses, in 2019 and 2021 respectively. Some states, notably Massachusetts and Maryland, have declined to specifically designate race tracks as casino locations, but nonetheless have awarded casino licenses to race tracks through open competitive bidding processes.[1]
Some other states have declined to authorize casino gambling within their states, but have authorized race tracks to offer historical horse racing machines, which are similar in appearance to slot machines but which award prizes based on the results of old horse races.[7] This style of gambling was first introduced at Oaklawn Park in Arkansas in 2000.[7] Arkansas race tracks were subsequently authorized to offer casino gambling, however, several state, including Kentucky and Virginia, still offer this style of gambling at race tracks.[7]
In some states, certain racinos have been permitted to discontinue live racing and still been permitted to continue their casino operations. Many of these are former greyhound tracks that have closed as result of public sentiment turning against the sport on animal welfare grounds.[8] Only two greyhound tracks continue to operate in the United States, both of which are racinos in West Virginia.[9]
Today there are approximately 50 racinos operating in 17 U.S. states, not including any tracks offering historical horse racing machines.[1] In 2023, the number one commercial casino in the United States outside of Nevada was a racino, Resorts World New York City located at Aqueduct Racetrack, with approximately $950 million in casino gaming revenue.[10] Four other racinos were also in the top 20, as were two former greyhound racing facilities.[10]
Types of racinos
[edit]- Slot Machines: The most common gaming feature in racinos.
- Video Lottery Terminals (VLTs): Electronic gaming machines connected to a central system.
- Table Games: In some cases, racinos may include table games like blackjack, poker, or roulette, depending on local laws.
- Betting Facilities: Allowing wagers on live or simulcast races.
Racinos are often used to help revive struggling racetracks by drawing in additional revenue from casino gaming. They provide a mix of entertainment, from gaming to dining, and sometimes even live performances.
For instance, a study on the economic and tax revenue impacts of racino gaming in Texas estimated that implementing racinos could contribute just under $1 billion annually to the state. [11]
References
[edit]- ^ a b c d e "State of the States 2024" (PDF). AGA. Retrieved 2024-05-23.
- ^ Rudd, Denis; Mills, Richard; Flainegin, Frank; Litzinger, Patrick (August 2009). "Racinos – The Marriage of Horse Racetracks and Casino/Slots-Style Gambling – Friends or Foes?". Journal of Case Research in Business and Economics. 1: 32.
- ^ a b c Thalheimer, Richard (2010-04-02). "The Evolution of Racinos". Global Gaming Business Magazine. Retrieved 2024-05-23.
- ^ LaMarra, Tom (2012-02-28). "Optimism and Wariness as Mountaineer Reopens". Blood Horse Magazine. Retrieved 2024-05-23.
- ^ Gray, Ed (October 1, 1992). "Video games for dog days". Boston Herald. – via NewsBank (subscription required)
- ^ a b Christiansen, Eugene Martin (2003-01-18). Analysis and Recommendations for the Massachusetts Lottery (re: MSLC RFR Lot #526) (PDF) (Report). Christiansen Capital Advisors. pp. 20–21. Archived (PDF) from the original on 2024-01-15. Retrieved 2024-01-14.
- ^ a b c "Historical Horse Racing Machines: Recent Trends and Future Impacts in Oregon" (PDF). 2021-09-17. Retrieved 2024-05-23.
- ^ Nichols, Mike (7 April 2012). "Dog tracks were the wrong bet (Opinion)". Milwaukee Journal Sentinel. Retrieved 8 October 2023.
- ^ Stimpson, Ashley (2023-06-12). "Saturday Afternoon at the Last Dog Track in America - Belt Magazine". beltmag.com. Retrieved 2023-12-29.
- ^ a b "Commercial Gaming Revenue Tracker CY 2023" (PDF). AGA. Retrieved 2024-05-23.
- ^ The Economic and Tax Revenue Impact of Racino Gaming in Texas. Texans for Economic Development (PDF).
External links
[edit]- Dictionary entry tracing the term back to 1995
- Gambling drives passion for ponies, a June 2003 article from USA Today
- Argument Over VLTs at Tracks Heats Up, a December 2003 article from the Detroit News
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Racino
View on Grokipediafrom Grokipedia
A racino is a gambling venue combining a racetrack for horse or harness racing with casino operations, most commonly featuring slot machines or video lottery terminals alongside pari-mutuel wagering on races.[1] The term, a blend of "racetrack" and "casino," emerged in the United States during the 1990s as racing attendance declined amid competition from other entertainment and gambling options.[2] Racinos were initially authorized to bolster the financially strained racing industry by directing a portion of gaming revenues toward larger purses, track improvements, and state taxes, thereby sustaining operations that might otherwise have shuttered.[3] By the early 2000s, states like Delaware, West Virginia, and Louisiana had pioneered the model, with expansion accelerating as lawmakers sought new revenue streams without broad casino legalization.[4] In operation today across over a dozen states, racinos generate substantial economic activity; for instance, Ohio's facilities alone produced over $2 billion in annual gambling revenue as of 2024, funding education and infrastructure while supporting racing jobs.[5] While racinos have demonstrably increased horse racing purses—often doubling or tripling them in adopting states—and preserved rural tracks, they have faced scrutiny over potential addiction risks inherent to expanded gambling access and instances of political favoritism in licensing processes.[3][6] Critics argue that reliance on volatile slot revenues can undermine long-term racing viability if gaming cannibalizes track attendance, though empirical data from established markets show sustained overall contributions to state coffers exceeding $1 billion annually in taxes from the sector.[6][7]
Definition and Core Concept
Etymology and Definition
The term "racino" originated as a portmanteau blending "racetrack" and "casino," reflecting the hybrid nature of facilities combining live racing with gaming operations.[1][8][9] First attested in English around 1995, the word emerged in the context of American gambling policy debates aimed at bolstering declining racetrack revenues through legalized video lottery terminals or slots.[2] A racino denotes a combined racetrack—typically for horse or harness racing—and casino venue, where parimutuel wagering on races coexists with electronic gaming machines such as slots, often without full table games to distinguish it from standalone casinos.[1][10] Primarily authorized in the United States under state-specific laws, racinos allocate a portion of gaming proceeds, sometimes mandated by statute to subsidize purses for racing animals or industry infrastructure, thereby extending the viability of traditional tracks amid competition from pure casinos.[11] This model contrasts with pure racetracks by integrating revenue streams from non-racing gambling, which as of 2023 operates in over a dozen U.S. states including New York, Pennsylvania, and Delaware, generating billions in annual handle.[3]Distinction from Pure Casinos or Racetracks
A racino integrates casino-style gaming, primarily slot machines or video lottery terminals (VLTs), directly onto the premises of an existing horse or greyhound racetrack, creating a hybrid venue that supplements traditional pari-mutuel wagering on live races with electronic gaming options.[1] [12] In contrast, pure racetracks offer only betting on races without any casino elements, limiting revenue to handle fees, admissions, and race purses derived from wagers on equine or canine competitions.[9] This addition of gaming in racinos addresses declining attendance and betting at standalone tracks by diversifying income, often directing a portion of slot revenues to boost racing purses.[13] Unlike pure casinos, which typically feature a broad array of table games such as blackjack, roulette, and craps alongside slots, racinos are statutorily restricted in many jurisdictions to machine-based gambling to maintain a legal and perceptual separation from full commercial casinos.[14] The absence of table games in racinos stems from regulatory compromises, allowing states to expand gambling at racetracks—often seen as legacy industries—without authorizing unrestricted casino development, which faces greater political opposition.[15] Operationally, this distinction preserves the centrality of racing in racinos, where gaming floors are adjuncts to the track rather than the primary attraction, and facilities must sustain live racing schedules to retain gaming licenses.[13] These differences also manifest in taxation and oversight: racino revenues frequently include surcharges earmarked for racing subsidies, a mechanism absent in pure casinos focused on general state or local taxes, while pure racetracks depend on narrower, race-specific levies.[13] Such structures reflect causal incentives where racinos serve as lifelines for ailing track operators, blending gambling forms to enhance viability without fully supplanting either racing's cultural role or casinos' entertainment scope.[12]Historical Development
Early Origins and First Implementations
The racino concept emerged in the United States during the late 1980s and early 1990s, driven by the need to address severe financial declines in the horse and greyhound racing industries, which had suffered from falling attendance, competition from other gambling forms, and rising operational costs.[3] States began exploring hybrid models combining traditional pari-mutuel racing with electronic gaming devices, such as video lottery terminals (VLTs), to generate supplemental revenue while preserving racing infrastructure.[3] This approach was positioned as a targeted intervention rather than broad casino expansion, with VLTs often regulated as lotteries to navigate legal restrictions on full casino gambling.[13] West Virginia pioneered the first racino implementation in 1990 through a pilot program at Mountaineer Race Track (now Mountaineer Casino, Racetrack and Resort) in New Cumberland.[16] The state authorized the installation of 165 VLTs at the facility, marking the initial integration of slots-style gaming with live harness racing.[16] This experiment proved successful, prompting legislative expansion via the 1990 West Virginia Racing Act amendments, which permitted up to 9,000 terminals across licensed racetracks by the mid-1990s and generated significant state lottery revenue.[3] Subsequent additions at other West Virginia tracks, including Charles Town Races and Wheeling Island Greyhound Track, solidified the model, with VLT proceeds funding purses, infrastructure, and education initiatives.[17] Rhode Island followed with the nation's second racino in 1992 at Lincoln Greyhound Park (later Twin River Casino), where voters approved a referendum allowing VLTs to support the struggling track.[18] The facility installed approximately 1,800 machines initially, focusing on electronic gaming alongside greyhound racing to avert closure.[7] This implementation emphasized revenue sharing, with proceeds directed to state coffers and racing subsidies, setting a template for future adoptions.[7] Early racinos like these demonstrated viability in stabilizing attendance—Mountaineer reported increased daily visitors post-1990—but also sparked debates over whether gaming cannibalized pure racing interests or merely prolonged an outdated sector.[3] By the mid-1990s, similar pilots in Delaware and Iowa built on these precedents, though full-scale operations lagged until regulatory hurdles cleared.[18]Nationwide Expansion in the US
West Virginia initiated the racino model in 1990 by authorizing video lottery terminals (VLTs) at Mountaineer Race Track and Charles Town Races, marking the first integration of electronic gaming with live racing to address declining track revenues.[3][19] This experiment, overseen by the West Virginia Lottery Commission, generated significant supplemental income for purses and operations, setting a precedent for other states facing similar economic pressures in the horse and greyhound racing industries.[12] Rhode Island expanded the concept in 1992 with the addition of slot machines at Lincoln Greyhound Park (now Twin River), establishing the nation's first operational racino in response to competitive threats from nearby tribal casinos.[20][18] Delaware followed closely in 1991 by permitting VLTs at three harness racing venues—Harrington, Dover Downs, and Delmarva Downs—further demonstrating the model's viability for revenue diversification without fully commercializing standalone casinos.[3] By the mid-1990s, adoption accelerated in the Midwest and South. Iowa legalized slots at Prairie Meadows Racetrack in 1995, boosting attendance and wagering handle that had been eroding due to competition from lotteries and off-track betting.[4] Louisiana authorized VLT-style gaming at racetracks in 1999, with Fair Grounds Race Course implementing slots by 2001 to sustain thoroughbred racing amid fiscal shortfalls.[7] New Mexico joined in 2003, permitting slots at tracks like Sunland Park and Ruidoso Downs, while Ohio and Maryland emerged as later adopters post-2008, with Ohio's racinos at Thistledown and Mahoning Valley launching operations around 2012 to fund education via gaming taxes.[21] The 2000s saw broader proliferation, particularly in the Northeast and Southeast. Pennsylvania enacted the Race Horse Development and Gaming Act in 2004, authorizing slots at seven racetracks including Philadelphia Park and Presque Isle Downs, with facilities opening by 2006 and generating over $1 billion in annual tax revenue within years.[3] Florida approved slots at Gulfstream Park and other tracks in a 2004 constitutional amendment, operationalized by 2006, though limited to voter-approved counties.[18] New York authorized VLTs at Aqueduct, Belmont, and other tracks in 2011 following legislative approval in 2010, subsidizing purses that increased from $200 million to over $300 million annually by the mid-2010s.[22] By 2010, 15 states hosted racino gaming, up from one in 1990, driven by state budget needs and the racing sector's reliance on cross-subsidization from slots, which often comprised 80-90% of venue revenues.[3] This expansion reflected a pragmatic response to empirical declines in traditional pari-mutuel wagering—U.S. handle fell from $15.2 billion in 1990 to $11.2 billion by 2010—while channeling gaming proceeds to preserve racing infrastructure, though critics noted dependency risks if slots faced saturation or regulatory shifts.[19] As of 2023, operational racinos exist in approximately 12 states, including Maine (since 2005 at Bangor's Fairgrounds) and Oklahoma (limited tribal-racino hybrids), with ongoing debates in states like Illinois, where legalization occurred in 2019 but implementation lagged due to capital and regulatory hurdles.[23][24]International Adoption and Variations
Canada has extensively adopted the racino model, operating 28 facilities across six provinces including Alberta, British Columbia, Manitoba, Newfoundland and Labrador, Ontario, Prince Edward Island, Québec, and Saskatchewan.[25] These venues typically integrate harness racing with video lottery terminals (VLTs) or slot machines, providing revenue to sustain declining racing industries amid competition from standalone casinos and online betting. Examples include Woodbine Racetrack in Ontario, which features over 3,000 slots alongside thoroughbred and harness racing, and Century Mile Racetrack and Casino in Alberta, which opened on April 1, 2019, offering a one-mile track with slots, VLTs, and electronic table games.[26][27] In Europe, racino adoption remains limited and recent, reflecting stricter regulations on gambling integration at racetracks. Austria operates one such facility, Magna Racino in Ebreichsdorf, approximately 20 miles south of Vienna, which commenced live racing on April 4, 2004, combining thoroughbred events with slot machines and table games.[28] The United Kingdom has a single racino at Wolverhampton Racecourse, the nation's first floodlit track, where horse racing pairs with on-site gaming options including slots to enhance attendance and funding.[29] Outside Europe, isolated examples exist in Asia and South America. The Philippines features one racino, San Lazaro Leisure Park in Carmona, Cavite, about 60 minutes south of Manila, blending horse racing with casino gaming under regulatory oversight by the Philippine Amusement and Gaming Corporation.[30] In Argentina, Hipódromo Argentino de Palermo in Buenos Aires, established in 1876, incorporates thoroughbred racing with an adjacent casino offering slots and table games, serving as an early international variant to bolster track viability.[4] These implementations generally mirror North American racinos by prioritizing slot machines over full table games to comply with local laws, though proliferation is constrained by cultural preferences for parimutuel betting and standalone casinos rather than hybrid models.Operational Structure
Gaming Facilities and Offerings
Racinos primarily feature electronic gaming machines, including video lottery terminals (VLTs) and slot machines, which form the core of their gambling offerings.[31] VLTs operate as networked devices regulated by state lottery commissions in jurisdictions like Ohio and West Virginia, using random number generators to simulate games such as video slots, reels, keno, and video poker, with payouts determined centrally to ensure compliance.[32][33] Slot machines in racinos, often indistinguishable from those in casinos in functionality, typically range from penny denominations to higher stakes, with facilities housing 1,000 to over 5,000 units depending on the venue's scale and state authorization.[34][35] To differentiate from standalone casinos, many racinos restrict offerings to machine-based gaming and prohibit or limit live table games like blackjack, roulette, or craps, as seen in Ohio where only VLTs are permitted without dealer-operated tables.[35][33] In contrast, some states such as Pennsylvania allow select racinos to incorporate table games alongside slots, reflecting regulatory evolution since the early 2000s, though VLTs and slots remain predominant for their lower operational costs and higher volume throughput.[36] Gaming floors are typically expansive, climate-controlled areas adjacent to racetracks, equipped with electronic player tracking systems for loyalty programs and cashless wagering, often operating 24 hours on non-racing days subject to local laws.[37] Variations in game availability stem from state-specific regulations; for example, West Virginia's racinos utilize VLTs owned by the state lottery, emphasizing Class II gaming mechanics that blend bingo-like elements with slot-style play to navigate federal Indian Gaming Regulatory Act distinctions.[31] Facilities may also include electronic table game variants, such as video blackjack terminals, but live dealer options are rare to avoid reclassification as full casinos.[38] Overall, these offerings prioritize high-frequency, low-stakes machine play to complement racing revenue, with average return-to-player rates statutorily set between 85% and 92% in states like Ohio to balance operator profits and public funds allocation.[39]Racing Integration and Types
Racinos integrate live racing operations directly with casino gaming facilities, maintaining parimutuel wagering on races as a core activity while casino revenues—primarily from slot machines and video lottery terminals—subsidize racing purses, track maintenance, and industry sustainability.[12][38] This financial linkage, established through state legislation, ensures that gaming proceeds are earmarked to bolster attendance and prize money for racing events, often reversing declines in traditional wagering.[40] In operational terms, racing schedules run concurrently with casino hours, allowing patrons to alternate between trackside betting and machine play, with shared infrastructure like parking and amenities enhancing cross-attraction traffic.[13] The predominant racing types in U.S. racinos are horse racing variants, including thoroughbred flat racing on turf or dirt tracks, standardbred harness racing with trotting or pacing horses pulling sulkies, and quarter horse racing focused on short sprints emphasizing speed bursts.[38] Greyhound dog racing, involving oval-track pursuits of a mechanical lure, features in select racinos, particularly in states like West Virginia and Kansas, though its prevalence has diminished due to welfare concerns and legislative bans, as seen in Florida's 2018 constitutional amendment prohibiting it by 2020.[41] These formats operate under strict regulatory oversight, with race frequencies varying by season—year-round in some climates—and betting integrated via simulcast feeds from other venues to extend wagering options beyond live events.[12]Regulatory Framework
Racinos in the United States operate under a regulatory framework primarily established and enforced at the state level, reflecting the constitutional authority of states to regulate gambling activities within their borders, with limited federal oversight confined to anti-money laundering and financial reporting requirements.[42] Authorization for racinos typically stems from state-specific legislation that expands existing pari-mutuel racing laws to include casino-style gaming, such as video lottery terminals (VLTs) or slot machines, often conditioned on demonstrated economic benefits to the racing industry.[43] As of 2024, eleven states host operational racinos, each governed by tailored statutes that mandate integration of gaming revenues to bolster declining racing purses.[6] State regulatory bodies, including gaming commissions, lottery commissions, or racing commissions, handle licensing, operational oversight, and enforcement. For instance, the Ohio Lottery Commission regulates the state's seven racinos, while the Indiana Gaming Commission supervises its four facilities, conducting background investigations, financial audits, and suitability assessments for operators, vendors, and key personnel.[43] [44] Licensing requirements generally include proof of financial stability, integrity of gaming equipment, and compliance with age restrictions (typically 21 years or older), with ongoing surveillance systems to detect fraud or irregularities.[45] Renewals involve periodic reviews, and violations can result in fines, license suspension, or revocation. Core regulations emphasize revenue allocation to sustain racing operations, with statutes in states like Delaware, Louisiana, and New York directing 15-30% of gaming gross revenues toward purse supplements for horse and greyhound racing, alongside state taxes ranging from 20-50% depending on the jurisdiction.[43] [7] These frameworks also impose responsible gaming mandates, such as self-exclusion programs, advertising limits, and employee training to mitigate problem gambling, audited annually for compliance.[46] In Ohio, for example, VLT revenues are distributed with a portion funding racino operations, taxes supporting education and local governments, and supplements enhancing race purses.[47] At the federal level, racinos qualify as "casinos" under the Bank Secrecy Act (BSA), subjecting them to Financial Crimes Enforcement Network (FinCEN) requirements for customer identification, transaction monitoring, and reporting suspicious activities exceeding $10,000 to combat money laundering.[48] This includes maintaining anti-money laundering programs with independent audits, though broader gaming operations remain exempt from direct federal licensing or taxation beyond excise taxes on wagers in certain cases.[49] States retain primacy, ensuring regulatory consistency with local priorities like economic development and industry preservation.Economic and Industry Impacts
Revenue Streams and State Funding
Racinos derive the bulk of their revenue from electronic gaming devices (EGDs), including slot machines and video lottery terminals, which typically constitute 70-90% of gross gaming revenue (GGR) depending on the state.[24] In 2024, for example, EGDs generated $603.2 million in Arkansas racinos, representing about 90% of the $672.1 million total GGR.[24] Table games contribute supplementary income where authorized, such as $68.9 million in Arkansas and $97.8 million in West Virginia, though their share remains smaller due to regulatory limits at many tracks.[24] Ancillary streams like admissions, concessions, and pari-mutuel wagering on races add marginally but are dwarfed by gaming proceeds, with total U.S. commercial gaming revenue, including racinos, reaching $72.04 billion in 2024.[24] State governments capture revenue through taxes and fees on GGR, often at rates of 20-60%, with distributions earmarked for specific purposes to justify expansions amid declining traditional racing attendance.[21] In Ohio, 100% of racino EGD tax revenue funds state education programs, generating steady contributions despite flat overall gaming trends.[50] Delaware imposes 56-57% on EGDs and 20% on tables, yielding $250.4 million in 2024 taxes, of which $196.3 million went to the general fund and $54.1 million to racing purses.[24] Nationally, racino taxes totaled $3.3 billion in fiscal year 2015, with newer implementations (e.g., in Maryland, Indiana, Ohio) showing 77.1% compound annual growth through that period, outpacing mature markets like West Virginia.[21] A core allocation mechanism subsidizes racing purses to bolster industry viability, often 20-50% of revenues, as pure track betting has eroded.[24] New Mexico directs 44.4% of its $261.4 million racino GGR to horse racing purses, alongside 55% to the general fund.[24] Oklahoma allocates 52.7% to racing from its $153 million GGR, with 47.3% to state education and general uses.[24] Other shares support local governments, infrastructure, and problem gambling programs; Rhode Island's $646.7 million GGR yielded $355.2 million to the general fund in 2024 for education, public safety, and healthcare.[24]| State | Key Tax Rate on EGD GGR | Primary Allocations (2024 Examples) |
|---|---|---|
| Delaware | 56-57% | General fund (78%), racing purses (22%)[24] |
| New Mexico | 46.25% | General fund (55%), racing purses (44.4%), problem gambling (minor)[24] |
| Rhode Island | ~60% | General fund (education/safety/healthcare, $355.2M), host towns (minimum $3M)[24] |
| West Virginia | 50.5% | State government (schools/tourism/seniors), counties/municipalities, racing[24] |
Effects on Horse and Greyhound Racing Industries
The introduction of racinos has generally bolstered the financial viability of the horse racing industry by channeling casino gaming revenues into purse subsidies, which attract higher-quality horses and sustain operations amid declining traditional betting handle. In states with racinos, such legislation typically mandates that a portion of slot machine or video lottery revenues—often 9-11%—be allocated to purses, reversing trends of contraction seen in non-racino jurisdictions. For instance, in Pennsylvania, slot revenues funded approximately 90% of thoroughbred and harness racing purses as of 2016, enabling purse levels that exceeded pre-racino figures and supported increased race days and field sizes. Similarly, in Ohio, racino contributions to harness racing purses reached $10.5 million in 2024, marking a 28% year-over-year increase and contributing to overall industry stability despite broader wagering shifts toward sports betting and historical horse racing terminals.[51][52] This subsidy model has created a causal dependency where casino profits, rather than racing-specific wagers, underpin the sector's economics, mitigating losses from competition with alternative gambling forms and fostering ancillary benefits like enhanced breeding programs and agribusiness ties.[53] However, the reliance on gaming subsidies has not uniformly revitalized attendance or live betting on horse racing, with some analyses indicating that racino states experienced less severe declines in live handle compared to non-racino states—such as a near 38% drop in the latter from baseline periods—but still faced overall erosion due to market saturation and consumer preferences for slots over pari-mutuel wagering. In West Virginia, for example, horse racing's economic impact reached $119.9 million in direct output in 2012, dwarfing greyhound contributions and sustained by racino allocations that propped up purses even as handle fluctuated. Critics argue this creates an artificial lifeline, potentially delaying structural reforms, yet empirical patterns show racinos correlating with purse growth and operational continuity in states like Delaware, Louisiana, and New York, where pre-racino purse stagnation or decline was arrested post-implementation.[13][54] In contrast, racinos have failed to halt the precipitous decline of the greyhound racing industry, where subsidies provided temporary purse support but could not overcome inherent challenges like animal welfare scrutiny, low public interest, and operators' push for decoupling from unprofitable racing mandates. Greyhound betting handle in the U.S. plummeted from $3.5 billion in 1991 to about $500 million by 2014, with many tracks—such as those in West Virginia—seeing live handle drop 87-93% from 1990 to 2013 despite casino revenues funding 95% of purses (e.g., $22.3 million in subsidies vs. $15.9 million in handle in 2013). Attendance at facilities like Wheeling Island fell 99% from 1983 levels to under 13,000 by 2013, reflecting disinterest that subsidies alone could not reverse, leading to decoupling efforts in states like Iowa (a $72 million buyout in 2014) and proposals in West Virginia to end racing ties and redirect funds.[55][56] This divergence from horse racing stems from greyhound's smaller economic footprint—$12.9 million direct impact in West Virginia in 2012 versus horses' $119.9 million—and broader bans driven by welfare concerns, rendering racinos a short-term prop rather than a savior, with most U.S. tracks ceasing operations since 2001.[56][57]Employment and Local Economic Effects
Racinos generate direct employment in casino operations, pari-mutuel wagering, horse or greyhound racing maintenance, hospitality services, and administrative roles, often expanding workforce at existing racetracks. In Ohio, where seven racinos operate alongside four casinos, the combined gaming sector supported nearly 20,000 jobs statewide as of 2023, contributing to an overall economic impact of $3.6 billion annually, including indirect and induced effects from employee spending.[58][59] Similarly, Pennsylvania's gaming industry, encompassing multiple racinos such as those at Penn National and The Meadows, directly employed over 15,000 workers while supporting a total of 33,000 jobs through supplier and spillover effects, with 90% of casino staff being state residents as of 2025.[60][61][62] Local economic effects extend beyond direct payrolls via multiplier impacts, where wages and vendor purchases stimulate retail, construction, and service sectors in host communities. A study of the Grand River Raceway racino in Ontario, Canada—a model comparable to U.S. operations—found that while the facility created employment opportunities, approximately two-thirds of positions were filled by non-local commuters, tempering net benefits for the immediate area despite increased local tax revenues funding infrastructure.[63] In U.S. contexts, racino introduction has correlated with localized personal income growth; for instance, early operations in states like Delaware and West Virginia preserved racing-related jobs (e.g., trainers, jockeys) that might otherwise decline, adding casino slots and table games staff without fully displacing other industries.[64] However, empirical analyses of casino expansions, including racinos, indicate potential substitution effects, where new jobs draw workers from nearby sectors like hospitality or manufacturing, yielding limited net employment gains county-wide.[65][66] Overall, racinos bolster rural and suburban economies tied to declining racing venues by diversifying revenue, with state gaming commissions reporting sustained job stability amid revenue fluctuations; Ohio's racinos, for example, maintained workforce levels despite a 26% potential decline risk from policy shifts, underscoring their role in anchoring regional labor markets.[67][68]Controversies and Criticisms
Social Costs Including Addiction
Racinos, which primarily feature video lottery terminals (VLTs) and slot machines alongside racing, have been linked to elevated risks of gambling addiction due to the rapid reinforcement schedules and near-miss features of these electronic gaming devices, often described in research as facilitating compulsive play akin to "crack cocaine of gambling."[69][70] Empirical studies indicate that regular participation in casino or racino-style slot gambling correlates with significantly higher problem gambling prevalence compared to other formats; for instance, monthly or more frequent casino gamblers exhibited problem gambling rates of 17.4% to 26.0%, over three times that of lottery gamblers.[71] Among racino and casino patrons, addiction rates are notably higher than general population estimates of 1-2%. A 2018 intercept survey of 2,103 older adults (aged 55+) at Ontario casinos and racinos found 27.2% screened as moderate to severe problem gamblers using the Problem Gambling Severity Index (PGSI), with 6.9% in the severe category; participants averaged 134.9 hours of annual gambling, predominantly on slots, and over 20% spent more than $6,000 yearly.[72] In Ohio, following the 2012 opening of seven racinos, treatment and diagnosis for gambling addiction rose markedly, with helpline calls and admissions increasing amid proximity to facilities; by 2017, regional data showed heightened demand near multiple racinos.[73] Social costs stem primarily from these addictions, including financial distress, family disruption, and mental health burdens, though direct racino-specific quantification remains limited and often extrapolated from broader casino data. Problem gamblers at such venues face risks of debt accumulation, job loss, and elevated suicide ideation, with U.S. estimates attributing billions annually in societal expenses like bankruptcy filings and criminal justice involvement to pathological gambling.[74] However, some analyses note that racino legalization may displace illegal gambling, potentially mitigating certain underground costs, while revenues in states like Ohio and Pennsylvania fund addiction treatment programs, offsetting portions of the burden.[7] Empirical evidence underscores that while overall population-level addiction prevalence has not surged dramatically post-racino expansion, vulnerable subgroups—such as low-income or older patrons—experience disproportionate impacts.[75]Ethical and Moral Objections
Critics of racinos contend that the integration of casino-style gambling with racetrack operations inherently promotes vice by encouraging reliance on chance for financial gain, which undermines personal responsibility and productive labor. Religious organizations, including evangelical groups, argue that such activities foster greed and covetousness, conflicting with ethical teachings that emphasize stewardship and honest work over speculative risk.[76][77] Moral objections often highlight gambling's zero-sum nature, where one participant's winnings derive directly from others' losses, akin to a regressive tax on the vulnerable and a threat to social cohesion. Opponents assert that racinos exacerbate this by locating high-intensity slot machines adjacent to racing venues, potentially normalizing addictive behaviors and eroding family stability through increased debt and relational strain.[78][79] In the context of racinos, ethical concerns extend to the subsidization of pari-mutuel betting on animal races, which some view as morally complicit in the exploitation of horses or greyhounds subjected to physical demands leading to injuries and euthanasia. Animal welfare advocates criticize the model for artificially prolonging a declining racing industry via casino revenues—estimated to fund over 80% of racetrack operations in states like New York and Pennsylvania—thereby perpetuating practices where equine fatality rates average 1.5 to 2 per 1,000 starts in the U.S.[80][81] Proponents of these objections, including faith-based coalitions in legislative debates, have historically blocked racino expansions, as seen in Minnesota where religious and moral opposition contributed to repeated failures of proposals from the 1990s through 2011. Such critiques prioritize deontological principles, deeming state-sanctioned promotion of gambling a failure of governance to protect citizens from self-destructive impulses, regardless of purported economic offsets.[82][83]Empirical Debunking of Common Critiques
Critics often contend that racinos significantly elevate rates of problem gambling by expanding access to slots and other gaming alongside racing. Empirical analyses, however, reveal no consistent statewide increases in problem gambling prevalence following racino introductions, with expansions primarily boosting participation among existing gamblers rather than creating net new cases of addiction. A comprehensive review by the American Psychological Association notes that, despite widespread casino and gaming growth—including racinos—scientists have not documented sustained rises in problem gambling rates over recent decades, attributing stability to substitution from informal or illegal wagering and enhanced responsible gaming measures.[84] Proximity studies, such as those examining casino access, show higher risks in disadvantaged areas but fail to establish broad causal spikes attributable to racinos specifically, as baseline gambling cultures at racetracks already predispose certain patrons.[75] Another frequent critique posits that racinos fail to revitalize declining horse and greyhound racing industries, merely providing short-term subsidies that mask structural inefficiencies. Data from comparative state analyses contradict this, demonstrating that racino states experienced far less erosion in racing handle and attendance than non-racino counterparts; for instance, non-racino states saw live pari-mutuel wagering decline by nearly 38% from the early 2000s onward, while racinos enabled purse increases averaging 50-100% through dedicated revenue allocations, attracting more horses and sustaining operations.[13] In Pennsylvania, post-2006 racino legalization correlated with a rebound in thoroughbred racing purses from $100 million in 2004 to over $200 million by 2010, directly supporting breeder and trainer retention amid broader industry contraction.[85] These outcomes stem from racinos' hybrid model, which cross-subsidizes racing via 15-30% of gaming taxes earmarked for purses, fostering long-term viability rather than dependency.[40] Claims of predominant social costs—such as elevated crime, bankruptcy, or fiscal cannibalization exceeding benefits—are similarly unsubstantiated by aggregate metrics. Longitudinal economic assessments find no significant correlations between racino operations and bankruptcy rates, with any localized financial distress often predating facilities in high-poverty host communities.[7] While some intra-gaming cannibalization occurs (estimated at 20-32% of slot revenue displacing other forms), net state revenues from racinos have exceeded $10 billion annually across operating jurisdictions by 2023, funding education, infrastructure, and racing without commensurate rises in social service demands.[86][87] In Ohio, for example, racinos generated $800 million in tax revenue in 2024 alone, supporting 10,000 jobs with minimal evidence of offsetting societal burdens beyond those inherent to voluntary gaming participation.[87]Current Landscape and Future Outlook
Major Operating Racinos by State
As of 2024, major operating racinos exist in 13 states, combining horse or greyhound racing with casino gaming such as slot machines and table games.[38] These facilities generate significant revenue, often supporting racing purses and state taxes. The following table lists prominent examples by state, focusing on facilities recognized for their scale, amenities, and contributions to the industry.| State | Major Operating Racinos |
|---|---|
| Arkansas | Oaklawn Racing Casino Resort (Hot Springs) |
| Delaware | Bally’s Dover Casino Resort, Delaware Park Casino & Racing (Wilmington), Harrington Raceway & Casino |
| Florida | Gulfstream Park Casino (Hallandale Beach), Hialeah Park Casino (Hialeah) |
| Indiana | Horseshoe Indianapolis (Shelbyville), Harrah’s Hoosier Park Racing & Casino (Anderson) |
| Iowa | Prairie Meadows Racetrack and Casino (Altoona) |
| Louisiana | Delta Downs Racetrack Casino Hotel (Vinton), Evangeline Downs Racetrack Casino Hotel (Opelousas), Fair Grounds Race Course & Slots (New Orleans), Harrah’s Louisiana Downs (Bossier City) |
| Maine | Hollywood Casino Bangor (Bangor) |
| New Mexico | Zia Park Casino Hotel Racetrack (Hobbs), Ruidoso Downs Race Track & Casino (Ruidoso), The Downs Racetrack & Casino (Albuquerque) |
| New York | Saratoga Casino Hotel (Saratoga Springs), Tioga Downs Casino Resort (Nichols), Empire City Casino by MGM Resorts (Yonkers), Finger Lakes Gaming & Racetrack (Farmington), Batavia Downs Gaming & Hotel (Batavia) |
| Ohio | Miami Valley Gaming (Lebanon), JACK Thistledown Racino (North Randall), Eldorado Gaming Scioto Downs (Columbus), MGM Northfield Park (Northfield) |
| Oklahoma | Remington Park Racetrack & Casino (Oklahoma City), Cherokee Casino Will Rogers Downs (Claremore) |
| Pennsylvania | Harrah’s Philadelphia Casino & Racetrack (Chester), Hollywood Casino at The Meadows (Washington), Presque Isle Downs & Casino (Erie), Hollywood Casino at Penn National Race Course (Grantville) |
| West Virginia | Wheeling Island Hotel Casino Racetrack (Wheeling), Mountaineer Casino Racetrack & Resort (New Cumberland), Hollywood Casino at Charles Town Races (Charles Town), Mardi Gras Casino and Resort (Nitro) |
Recent Trends and Developments (2020s)
In the early 2020s, U.S. racinos demonstrated strong revenue recovery post-pandemic, with commercial gaming revenue—including racino operations—reaching record levels driven by pent-up demand and expanded offerings like sports betting integration. Nebraska's racinos, for instance, reported $145.7 million in total revenue for 2024, marking a 63.6% year-over-year increase, fueled by the opening of new facilities such as Harrah’s Columbus, WarHorse Casino Lincoln, and WarHorse Casino Omaha in 2024. Similarly, Delaware's three racinos generated $554.5 million in 2024, up 10.4% from the prior year, bolstered by the January 2024 launch of mobile sports betting platforms. Ohio's racinos contributed to combined casino and racino revenue exceeding $223.5 million in March 2025 alone, reflecting sustained monthly growth amid broader state gaming expansions.[24][24][88] Expansions and new developments accelerated mid-decade, particularly in states authorizing casino gaming at racetracks. In Nebraska, the Racing and Gaming Commission licensed Lake Mac Casino and Racetrack for opening in August 2025, adding to infrastructure growth alongside table games revenue surging to $9.2 million in 2024 from $732,000 in 2023. New York's Resorts World Casino, a major racino in Queens, advanced Phase 2 expansion plans outlined in a May 2025 Draft Environmental Impact Statement, targeting construction start in Q1 2026 and full completion by 2030; this includes adding up to 11,000 gaming positions (from 6,650), a 2,000-room hotel, a 7,000-seat arena, and retail space totaling over 3.4 million gross square feet, tied to Aqueduct Racetrack's relocation to Belmont Park. Illinois' Fairmount Park Racetrack initiated a $95 million casino expansion in 2025, transitioning to full racino status under state legislation to enhance slot and table gaming.[89][24][90]| State | 2024 Racino Revenue ($M) | YoY Growth | Key Development (2020s) |
|---|---|---|---|
| Nebraska | 145.7 | 63.6% | New openings (2024-2025), table games addition |
| Delaware | 554.5 | 10.4% | Mobile sports betting launch (2024) |
| Maine | 218.7 | 24.9% | Sports betting integration (2024) |
| Illinois | Included in $2,920 total | 15.8% | Fairmount expansion (2025) |
References
- https://en.wiktionary.org/wiki/racino