The times are a changing

by Trey Nosrac

“The only way to make sense out of change is to plunge into it, move with it, and join the dance.”

Alan Watts

“We are called to be the architects of the future, not its victims.”

Buckminster Fuller

Over a century ago, when pari-mutuel wagering on horses arrived in America, state governments entered the picture to regulate and profit from racing. This marriage of sport and state led to complex webs where horse racing relied on state governments for survival. State governments could capture economic rewards.

Horse racing was, and is, a bit of an odd duck in the sporting world. Other sports relied on ticket sales, advertising, sponsorships, or private investment and did not require state cooperation, regulation, or intervention for their existence. Other sports made their own rules and regulated themselves. While we have had outstanding state legislators who cared for and supported horse racing, the game was, and is, always about money and power as far as each state is concerned.

The question is: at this point in history, in a world where sports gambling is exploding, should horse racing retain its long relationship with state governments? At this point in history, a few states appear to be doing well with the current model, but is it the best course for the long run?

Demographics are not favorable to horse racing. Revenue from sports gambling will soon dwarf that of our pari-mutuel gambling model. If we follow the money and the trends, it seems possible that states will begin to prioritize modern sports wagering and lose interest in horse racing. With individual states calling the gambling shots, horses and horseplayers may be racing to the bottom, and potential new states may never get on the track.

In the new gambling world, existing state regulation of horse racing could be in jeopardy. Should a state government want to reallocate regulatory funding from pari-mutuel horse racing to online sports gambling – who could blame them? States will follow the money and the votes. Sad examples such as Florida, Illinois, and Michigan illustrate that the existence of state-controlled harness racing programs is fragile.

The casino money is necessary and welcome but is not a long-range solution. The future of our sport feels, shaky. Who will take the reins and lead horseracing into the gambling landscape of the future?

In my wanderings through the harness racing world, I encounter many solid organizations and wonderful people. The sector that always strikes me as having a high level of energy, relative youth, ambition, business savvy, and looking toward the future, are the owners of breeding farms.

Big farms, small farms, and medium-sized farms build our product, sell our product, and look ahead. The players in the breeding business read statistics and balance sheets. They have allies in our industry, and they own property. They nurture old customers and seek new customers. Several farms sell horses in multiple state programs. Standardbred breeding farm operators understand perfectly well that if harness horse racing stumbles, they fall.

Our leaders in the breeding industry certainly are not anxious to lead a restructuring of the horse racing industry. No entity wants a flaming hot mess of struggling fiefdoms in a problematic environment tossed in their lap. But we are where we are, and to my mind, our leaders in the breeding ranks are the closest thing we have to a rescue party.

Perhaps the first step would be assembling a panel of breeding farm leaders. These leaders could hire strategists and formulate options. Options that may very well (gently) cut some cords, open new territories, eliminate sectors that hold us back, and coordinate new national and local schedules. They could also include controlling our money, wagering outlets, regulations, and licensing. The breeding farms are smart enough to know they do not know everything and may find AI helpful. At the very least, a bold national plan for revival and self-sufficiency that members could rally around would be better than no plan.

With the bitter taste of Freehold and Pompano on our tongues and dark clouds of hungry young competitors elbowing into the gambling game, there still may be time for change and for the unity of our various tribes. Today may be the time to run towards an unknown future instead of away from the apparent one.