Pennsylvania officials make progress in racing commission talks

Representatives of Pennsylvania’s horseracing industry are expected to meet throughout next week in an attempt to resolve concerns raised by the state government over the budget of the racing commission, according to officials who participated in talks this week.

Last week, Pennsylvania Gov. Tom Wolf threatened to issue an order that would have shut down the racing commission by the end of November if racing constituents, legislators, and regulators did not come up with a way to increase the racing commission’s funding. Citing progress in the talks this week, the state’s agriculture secretary, Russell Redding, said Friday the governor would not issue a shutdown order for at least another week as the constituents try to iron out a solution.

If the governor were to issue a shutdown order, it would take at least 30 days to go into effect. Racetracks would not be able to operate if the racing commission shut down.

“This has not been an easy process, but it has been an incredibly productive process,” said Redding. “We have come a long way since Friday. … Everyone seems genuinely committed to finding a long-term, sustainable solution that will keep racing alive and well in Pennsylvania for years to come.”

A racing official involved in the discussions, speaking on the condition of anonymity, said significant issues remain in the talks.

“We have consensus on some issues, but we also have some outstanding issues,” the official said. “There’s still some very wide gaps that we need to close.”

The state racing commission has said it likely will face $10 million shortfalls in coming years. The commission primarily is funded by revenues raised from in-state bets on live races, a source that has fallen precipitously in the last decade, despite the wide expansion of racing dates at both Thoroughbred and Standardbred tracks brought on by the advent of subsidies from casinos in the state in the mid-2000s.

The state’s Race Horse Development Fund distributes approximately $250 million in purse and breeders’ awards subsidies every year.