Maryland is changing course — again — on how it manages the struggling sport of thoroughbred horse racing, eliminating a state panel that has been overseeing a massive transition in the industry.
The Maryland Thoroughbred Racetrack Operating Authority, created by the state in 2023, will suddenly dissolve years earlier than originally contemplated. A provision tucked into the state budget bills during final negotiations zaps the authority, shifting its responsibilities to the state’s stadium authority and its economic development arm.
The racetrack operating authority has been overseeing the transition of the industry from a heavily subsidized but privately run sport into an industry that will eventually be largely managed by the state.
The Stronach Group that owned historic but dilapidated Pimlico Race Course in Baltimore agreed to turn over the property to the state, which will soon embark on a massive, taxpayer-financed renovation. A state-created nonprofit that adopted the historic name Maryland Jockey Club took over the responsibility of running horse races in the state beginning in January, though no board has yet been appointed to oversee that entity.
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The racetrack operating authority, a volunteer panel led by attorney Greg Cross from the Venable law firm, had been expected to provide stability to Maryland racing through the transition until 2029. But instead it will cease to exist on June 30, after a pivot in the final days of the Maryland General Assembly session.
It’s not clear why this action was taken through the final step of the budget process, rather than by introducing and passing a bill to end the racetrack authority’s work. Neither top lawmakers nor Gov. Wes Moore’s office explained how — or why — the provision was tucked into the budget.
“There is a belief that we will get a lot better results and more accomplished by shifting some of the authority to some known entities, and that’s what we’re doing,” said Sen. Guy Guzzone, chair of the Senate Budget and Taxation Committee.
Asked if there were concerns about how the racetrack operating authority was run, Guzzone said, “I guess the simplest way to say it is: We want to make sure it’s done the best possible way, and we believe this is going to lead to that.”
“We just wanted some more oversight, to be able to understand and know what’s going on in real time, which wasn’t happening,” said Del. Vanessa Atterbeary, chair of the House of Delegates committee that oversees racing.
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Members of the racing authority’s board of directors had expressed frustration with Cross in recent months and had asked in meetings for more transparency. Multiple members of the board did not attend the most recent meeting.
Cross said the time is right for the racetrack operating authority to wrap up its work and hand the baton to the entities that will manage the tracks and racing in the long term.
“We were set up with specific tasks to accomplish, and all of those tasks, when we get to July 1, will be almost totally completed,” Cross said. “It is time for the new Maryland Jockey Club and the Maryland Stadium Authority to take it from there.”
The dissolution of the racetrack operating authority is not expected to result in significant changes to the blueprint for racing going forward.
The Maryland Stadium Authority will pick up the responsibility of building Pimlico as well as a new training center for horses. Combined, the projects are expected to cost the state $500 million.
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Gary McGuigan, the stadium authority’s executive vice president for capital projects, said there will be “no real changes” as the authority continues to design the projects and prepare for the rebuild of Pimlico.
“In terms of impact to the project, it should be a smooth transition,” he said.
After the 150th running of the Preakness Stakes in May, demolition work will begin at Pimlico, as previously planned. The 2026 Preakness meet will be held at Laurel Park during construction at Pimlico, and, if everything stays on schedule, the renovated Pimlico will reopen for the 2027 Preakness.
Pimlico will be the home of year-round thoroughbred racing in Maryland, and racing at Laurel Park will be discontinued.
Eliminating the racetrack operating authority is also expected to save the state money. Six employee positions and $3.4 million worth of funding were removed from the state budget for the next budget year, which starts July 1.
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Delegates and senators are expected to take final votes on the budget bills, including the provisions to eliminate the racetrack operating authority, on Monday, the final day of their legislative session.
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