Plan calls for state to take over Pimlico

Pimlico Race Course in Baltimore will be deeded to the state, rebuilt, and converted to a year-round racing facility run by a not-for-profit operator under the recommendations of a task force that issued a report Friday to the Maryland’s legislature.

The task force, the Maryland Thoroughbred Racetrack Operating Authority, said in its report that the best path forward for racing over the long term would be for the state to assume the deed for Pimlico from its current owner, 1/ST Racing, rebuild the track, and develop a new year-round training center. The report said that the plan would be funded through $375 million in bonds authorized for the racing industry by the state legislature several years ago.

Under the plan, Laurel Park, another Maryland track owned by 1/ST, would continue to hold live racing for the four-year period that would be needed to rebuild Pimlico. However, beginning in 2025, the track would be run by a not-for-profit operator created by the authority that would also take over the operations of Pimlico once the rebuilding project is complete.

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According to the report, the authority and 1/ST have already begun negotiations on the aspects of the plan requiring 1/ST to transfer the deed to Pimlico to the state. The plan also states that the new not-for-profit company would “operate” the Preakness Stakes – the most valuable asset in Maryland racing – under a “licensing agreement” with 1/ST.

In a statement released after the issuance of the report, 1/ST said that it has already reached “an agreement in principle” that “will enable the MTROA to design and build an iconic racing venue at Pimlico and take over day-to-day racing and training in Maryland.” The statement was endorsed by Maryland Gov. Wes Moore.

The MTROA was created in 2023 to consider long-term options for the Maryland racing industry at a time when the differences between horsemen and 1/ST on a direction for the sport began diverging widely.

1/ST has said that the company is unable to generate a profit for its tracks under a current schedule that provides approximately 155 live racing days per year, while horsemen and breeders have said that any cuts to the live racing schedule would result in a significant weakening of the entire state’s equine industry.

Horsemen and breeders in Maryland receive approximately $60 million each year in subsidies from the state’s casinos. Over the past 11 years, a portion of those subsidies have been directed to 1/ST to assist in the operations of its tracks, under a private agreement between the two parties that maintained the 155-day live schedule.

The decision to consolidate racing at Pimlico is supported by all the major racing constituents in the state, and any plan to shutter the track and relocate the Preakness was considered dead in the water due to the impact of the facility and the race on the Baltimore community. Under the plan, the Pimlico property would be redeveloped to include a hotel with a 1,000-seat “event space,” and portions of the property would be allocated as “development parcels.” In addition, new housing would be built for backstretch workers near the site.

The report said that a rebuilt Pimlico would better align the track’s Triple Crown amenities with Churchill Downs and Belmont Park, the other two Triple Crown hosts. Churchill Downs has poured hundreds of millions of dollars into renovations because of the stratospheric revenue opportunities available from the Kentucky Derby, while Belmont Park is being rebuilt through the use of a state-authorized loan that will be paid off from gambling subsidies going to Belmont’s operator.

“The facilities at Pimlico no longer match the reputation of the event and lag behind other Triple Crown hosts that are each currently investing hundreds of millions of dollars in their facilities,” the report said.

Major elements of the plan will need to be approved by the state’s legislature, but the endorsement of the plan by Moore provides a critical element of support.

“The Authority’s report represents an important next step for the industry, and I look forward to working with the General Assembly and the Maryland Thoroughbred Racetrack Operating Authority to finalize an agreement that ensures this important industry continues to create jobs and drive economic growth for years to come,” Moore said in a press release.

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