A fairly simple path

by Trey Nosrac

Events move quickly in the gambling industry. What would we do if the world of wagering on races we are familiar with no longer exists? Are there any plans if a fiscal apocalypse strikes harness racing in our remaining racing states? Restructuring the existing fair racing programs would probably be the simplest course for attempting to rise from the ashes.

Let’s take Pennsylvania as an example of a possible transformation option. The Keystone State has a rich harness racing history, a fine racing program, a solid fair program, and a large breeding farm footprint. Now let us imagine the unimaginable – state funding decreases or is abruptly withdrawn.

Could this ever happen? We hope not, but who knows? The PA racing fund gets financed from slot-machine revenues, which are trending downward. Racing states are constantly under pressure from governors to redirect funding and plug budget deficits.

For this discussion, all bets are off. We watch, mouths agape, as unsupported pari-mutuel purses plummet and leave the harness racing community floundering. An improvement over the floundering and wringing of hands could be transitioning from a gambling-dependent model to a non-wagering framework using the existing County Fair program. The County Fair route could be the most logical reboot.

The first step could involve the establishment of a commission, which we will refer to in this proposed example as the Harness Racing Fair Commission of Pennsylvania. The membership of this Commission should be varied, with the core members from the Pennsylvania Department of Agriculture. In addition, experienced former horse racing gambling administrators, County Fair Board members, rural economic development agencies, breeding farms, and maybe animal welfare organizations would have a seat at the table.

This Commission board assumes responsibility for writing the rulebook and enforcing the rules in Pennsylvania’s new non-wagering harness racing world. The HRFCP manages the money, oversees (and upgrades) the racetracks, and creates a point system for the competitors.

An essential task for the Commission would be to redirect residual existing state racing subsidies from the former pari-mutuel program to the non-racing program. The new non-gambling program should have representatives front and center at future government sessions, and our representative may have a much simpler and more positive message about why the government should keep the faucet open to the horse world.

According to the Pennsylvania Racehorse Development Act (Act 71), the horse racing industry allocation for 2024, based on slot machine revenues, totaled about $288 million, with 80 per cent distributed to racing purses, 16 per cent for breeders’ incentives, and 4 per cent for health and pensions. Should pari-mutuel harness racing be eliminated, retaining some funding could be redirected to the non-gambling model, which would be a good foundation.

If the gambling purse money is in play, a points system for a large slate of racing for young horses, say ages 2 through 4, could be implemented with a financial “Rewards system” at the end of each racing season. Non-gambling does not necessarily mean no money. In the future, racing a harness horse could offer monetary performance rewards at the end of the season based on increased staking and state grants.

The new, non-wagering format, led by the Commission, could use this money for a new restart for our old passion – renovation of historical fairgrounds, grants for participants, youth programs, political lobbying, horse welfare, horse retirement, and repurposing programs. The program could offer transitional support from the traditional horse racing industry for the trainers, grooms, breeders, and drivers.

Do we want to create a new racing scene?

Of course not.

Is anyone behind the scenes working on a “just in case” plan following a significant disruption?

Hard to say.

How strong could a new model for an old sport be?

The new structure could be as strong and innovative as the creators make it.

Are existing fairgrounds and fair racing our best track for a restart?

Most likely.