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[[Image:Monticello-raceway.jpg|thumb|350px|[[Monticello Raceway]] in New York where the casino has been incorporated into the grandstand]]
[[Image:Monticello-raceway.jpg|thumb|350px|[[Monticello Raceway]] in New York where the casino has been incorporated into the grandstand]]
A '''racino''' is a combined [[race track]] and [[casino]]. In some cases, the gambling is limited to [[slot machine]]s, but many locations are beginning to include [[Casino game#Table games|table games]] such as [[blackjack]], [[poker]], and [[roulette]].
A '''racino''' is a combined [[horse racing]] [[race track|track]], or other live [[parimutuel betting]] facility, and [[casino]]. In some cases, the permitted form of [[casino]] gambling is limited to [[slot machine]]s or [[video lottery terminal]]s, but many locations also offer [[Casino game#Table games|table games]] such as [[blackjack]], [[poker]], and [[roulette]]. As of the end of 2023, there were approximately 50 racinos operating in the [[United States]]. <ref name="first">{{cite web |title=State of the States 2024 |url=https://www.americangaming.org/wp-content/uploads/2024/05/AGA-State-of-the-States-2024.pdf |website=AGA |accessdate=2024-05-23 }}</ref> Racinos operate in other countries around the world, as well, including [[Canada]] and [[France]]. <ref>{{cite journal |last1=Rudd|first1=Denis |last2=Mills |first2=Richard |last3=Flainegin |first3=Frank |last4=Litzinger |first4=Patrick |date=August 2009|title=Racinos – The Marriage of Horse Racetracks and Casino/Slots-Style Gambling – Friends or Foes?|journal=Journal of Case Research in Business and Economics|volume=1 |page=32}}</ref>

==Business model==
In 2003, shortly after attending a Racing & Gaming Summit in [[Tucson, Arizona]], [[Joe Bob Briggs]] described the economic motivation of American [[race track]] owners to convert into racinos:
{{Blockquote|[[Horse racing]] and [[Greyhound racing|dog racing]] have been in a slow decline for almost 20 years now....the only tracks that have really thrived are the ones that have slot machines. In many cases their live handle (the daily amount bet at the track by live customers) has continued to decline, but their revenues have shot up so fast that they're able to offer the biggest purses and thereby attract the best horses. Tracks like [[Delaware Park (race track)|Delaware Park]] and West Virginia's [[Mountaineer Casino, Racetrack and Resort|Mountaineer Park]], once considered places where local degenerates bet on broken-down nags in claiming races, are now among the wealthiest tracks around, with the best races. Fabled tracks like [[Pimlico Race Course|Pimlico]], on the other hand, sometimes have trouble making ends meet.<ref>{{cite news |title=The Vegas Guy: what is a Racino? |first=Joe Bob |last=Briggs |author-link=Joe Bob Briggs |date=2003-01-08 |orig-date=2003-01-07 |location=[[Tucson, Arizona]] |agency=[[United Press International]] |url=https://www.upi.com/Archives/2003/01/08/The-Vegas-Guy-what-is-a-Racino/4651042002000/ |access-date=2024-01-14}}</ref>}}


==History in the United States==
==History in the United States==
⚫
The first real financial success story for racinos in the United States was the mid-1990s turnaround of the [[Prairie Meadows]] racetrack, in [[Polk County, Iowa]]. Prairie Meadows, which opened in 1989 but went bankrupt by 1991, was bought by the county government in 1993.<ref name=CCA/> As reported in a January 2003 study for the [[Massachusetts State Lottery Commission]]:
⚫
{{Blockquote|In 1994, Iowa voters authorized [[Slot machine#Reels|reel-spinning slot machines]] at Iowa racetracks (including Greyhound tracks). Polk County spent an additional $26 million to convert the Prairie Meadows clubhouse into a casino and install 1,100 slot machines. On April 1, 1995 the slot casino (or "racino") opened for business. In the 12 months ended March 31, 1996<!--- no comma, direct quote from report ---> machine revenues totaled $119.3 million, enabling Polk County to pay off the $27 million bond issue that paid for the clubhouse casino conversion within that initial year and retire the track's initial $38.8 million bond issue 17 years early.<ref name=CCA>{{cite report |title=Analysis and Recommendations for the Massachusetts Lottery (re: MSLC RFR Lot #526) |first=Eugene Martin |last=Christiansen |publisher=Christiansen Capital Advisors |date=2003-01-18 |pages=20–21 |url=https://pioneerinstitute.org/wp-content/uploads/77CCA-Lottery-Report-Final.pdf |access-date=2024-01-14 |archive-url=https://web.archive.org/web/20240115012205/https://pioneerinstitute.org/wp-content/uploads/77CCA-Lottery-Report-Final.pdf |archive-date=2024-01-15 |url-status=live}}</ref>}}


Beginning in the late 1970’s, the popularity of horse racing began to decline in the United States, as evidenced by the inflation-adjusted decline in wagering by 52 percent from a peak in 1977 through 2006.<ref name="second">{{cite web |title= The Evolution of Racinos |first=Richard |last=Thalheimer |url=https://ggbmagazine.com/article/the-evolution-of-racinos/ |publisher=Global Gaming Business Magazine |date=2010-04-02 |accessdate=2024-05-23 }}</ref> This decline in wagering occurred even with the introduction of initiatives to increase parimutuel wagering, such as of [[off-track betting]] and [[advance-deposit wagering]], and is generally attributed to the introduction and growth of casino and lottery gaming.<ref name="second" />
The report further showed that some of the Prairie Meadows racino's increased revenues were used to increase horse racing purses, which attracted better horses to the racetrack and helped to develop horse breeding in Iowa.<ref name=CCA/>

In 1990, [[West Virginia]] authorized the installation of several hundred video lottery terminals at [[Mountaineer Park]] as part of a pilot program that eventually became law four years later. <ref>{{cite news |title= Optimism and Wariness as Mountaineer Reopens|first=Tom |last=LaMarra |url=https://www.bloodhorse.com/horse-racing/articles/131620/optimism-and-wariness-as-mountaineer-reopens/ |publisher=Blood Horse Magazine |date=2012-02-28 |accessdate=2024-05-23 }}</ref>

In 1992, in response to the opening of the [[Foxwoods Resort Casino|Foxwoods]] [[Native American|Native American gaming]] casino nearby in [[Connecticut]], the [[Rhode Island]] legislature passed a bill permitting electronic gaming devices at the state’s two parimutuel wagering venues, [[Bally's Twin River Lincoln|Lincoln Greyhound Park]] and Newport Jai Alai. <ref>{{cite news|title=Video games for dog days|newspaper=Boston Herald|first=Ed|last=Gray|date=October 1, 1992 |url=http://docs.newsbank.com/openurl?ctx_ver=z39.88-2004&rft_id=info:sid/iw.newsbank.com:AWNB:BNHB&rft_val_format=info:ofi/fmt:kev:mtx:ctx&rft_dat=10264E0E7091CCE5&svc_dat=InfoWeb:aggregated5&req_dat=0D6884C8DA6CD5B5}} {{subscription required|via=NewsBank}}</ref>


⚫
An early success story was the mid-1990s turnaround of the [[Prairie Meadows]] racetrack, in [[Polk County, Iowa]]. Prairie Meadows, which opened in 1989 but went bankrupt by 1991, was bought by the county government in 1993.<ref name=CCA/> As reported in a January 2003 study for the [[Massachusetts State Lottery Commission]]:
''[[USA Today]]'' noted in a June 2003 article that receipts from slot machines are divided about evenly in four ways:
⚫
{{Blockquote|In 1994, [[Iowa]] voters authorized slot machines at Iowa racetracks (including Greyhound tracks). Polk County spent an additional $26 million to convert the Prairie Meadows clubhouse into a casino and install 1,100 slot machines. On April 1, 1995 the slot casino (or "racino") opened for business. In the 12 months ended March 31, 1996<!--- no comma, direct quote from report ---> machine revenues totaled $119.3 million, enabling Polk County to pay off the $27 million bond issue that paid for the clubhouse casino conversion within that initial year and retire the track's initial $38.8 million bond issue 17 years early.<ref name=CCA>{{cite report |title=Analysis and Recommendations for the Massachusetts Lottery (re: MSLC RFR Lot #526) |first=Eugene Martin |last=Christiansen |publisher=Christiansen Capital Advisors |date=2003-01-18 |pages=20–21 |url=https://pioneerinstitute.org/wp-content/uploads/77CCA-Lottery-Report-Final.pdf |access-date=2024-01-14 |archive-url=https://web.archive.org/web/20240115012205/https://pioneerinstitute.org/wp-content/uploads/77CCA-Lottery-Report-Final.pdf |archive-date=2024-01-15 |url-status=live}}</ref>}}
* Payment of the operating costs and payouts to lucky gamblers,
* State taxes,
* Prize money (the [[Purse distribution|purse]]) offered to [[jockey]]s and horse owners, and
* Profit for the racino operator.


Other states followed suit. [[Delaware]] authorized racinos in 1994, and [[Louisiana]] and [[New Mexico]] in 1997.<ref name="first" /> A number of larger states also enacted enabling legislation, including [[New York (state)|New York]] in 2001, [[Florida]] and [[Pennsylvania]] in 2004, and [[Ohio]] in 2011.<ref name="first" /> Some states, notably [[Massachusetts]] and [[Maryland]], declined to specifically designate race tracks as casino locations, but nonetheless have awarded casino licenses to race tracks through open competitive bidding processes.<ref name="first" />
A November 2003 article in ''Global Gaming Insider'' noted that the creation racinos had led to consolidation in the ownership of racetracks, with [[Magna Entertainment]] Corporation (currently [[Stronach Group]]) and [[Churchill Downs Incorporated]] the largest.
Some other states have declined to authorize casino gambling within their states, but have authorized race tracks to offer [[historical horse racing]] machines, which are similar in appearance to slot machines but which award prizes based on the results of old horse races.<ref name="HHR">{{cite web |title=Historical Horse Racing Machines: Recent Trends and Future Impacts in Oregon |url=https://www.opb.org/pdf/Historical%20Horse%20Race%20machines%20impacts%20FINAL%20Sept%2017%202021_1642878924493.pdf |date=2021-09-17 |accessdate=2024-05-23}}</ref>. This style of gambling was first introduced at [[Oaklawn Park]] in [[Arkansas]] in 2000.<ref name="HHR" /> Arkansas race tracks were subsequently authorized to offer casino gambling, however, several state, including [[Kentucky]] and [[Virginia]], still offer this style of gambling at race tracks.<ref name="HHR" />


In some states, certain racinos have been permitted to discontinue live racing and still been permitted to continue their casino operations. Many of these are former [[Greyhound racing in the United States|greyhound tracks]] that have closed as result of public sentiment turning against the sport on animal welfare grounds.<ref>{{cite news|url=https://archive.jsonline.com/news/opinion/dog-tracks-were-the-wrong-bet-2n4r4ta-146491805.html/|title=Dog tracks were the wrong bet (Opinion)|last=Nichols|first=Mike|date=7 April 2012|work=[[Milwaukee Journal Sentinel]]|access-date=8 October 2023}}</ref> Only two greyhound tracks continue to operate in the United States, both of which are racinos in West Virginia. <ref>{{Cite web |last=Stimpson |first=Ashley |date=2023-06-12 |title=Saturday Afternoon at the Last Dog Track in America - Belt Magazine |url=https://beltmag.com/saturday-afternoon-at-the-last-dog-track-in-america/ |access-date=2023-12-29 |website=beltmag.com |language=en-US}}</ref>.
In November 2004, [[Florida]] voters amended their state constitution to allow slot machines at [[Parimutuel betting|parimutuel]] facilities.


Today there are approximately 50 total racinos operating in 17 U.S. states, not including any tracks offering historical horse racing machines.<ref name="first" /> In 2023, the number one commercial casino in the United State outside of [[Nevada]] was a racino, Resorts World New York City located at [[Aqueduct Racetrack]], with approximately $950 million in casino gaming revenue. <ref name=”cgrt”>{{cite web |title=Commerical Gaming Revenue Tracker CY 2023 |url=https://www.americangaming.org/wp-content/uploads/2024/01/CY-2024_CGRT_v2.pdf |website=AGA |accessdate=2024-05-23 }}</ref>. Four other racinos were also in the top 20, as were two former greyhound racing facilities.<ref name=”cgrt” />
As of 2013, racinos are legal in ten U.S. states: [[Delaware Lottery|Delaware]], [[Louisiana]], [[Maine]], [[New Mexico Lottery|New Mexico]], [[New York Lottery|New York]], [[Ohio Lottery|Ohio]], [[Oklahoma Lottery|Oklahoma]], [[Pennsylvania]], [[Rhode Island Lottery|Rhode Island]], and [[West Virginia Lottery|West Virginia]].<ref>{{cite web| url = http://www.legis.nd.gov/assembly/59-2005/docs/pdf/79132.pdf | title = Other states' horse racing tracks - North Dakota Racing Commission revenue history |author=North Dakota Legislative Council staff for the Legislative Audit and Fiscal Review Committee | access-date = 2007-06-20}}</ref> The first racino in [[Pennsylvania]] opened in November 2006. West Virginia pioneered the concept when [[MTR Gaming Group]] was allowed to introduce [[video lottery terminal]]s (VLTs) to the venue now known as [[Mountaineer Casino, Racetrack and Resort]] in [[Chester, West Virginia|Chester]]. Delaware, Rhode Island, and [[West Virginia Lottery|West Virginia]], three of the members of the [[Multi-State Lottery Association]] (MUSL), jointly ran a progressive VLT game, [[Cashola|Ca$hola]], from 2006 to July 2011; the three lotteries began offering Ca$hola's successor, ''[[MegaHits]]'', on July 15, 2011.


==References==
==References==

Revision as of 23:19, 23 May 2024

Monticello Raceway in New York where the casino has been incorporated into the grandstand

A racino is a combined horse racing track, or other live parimutuel betting facility, and casino. In some cases, the permitted form of casino gambling is limited to slot machines or video lottery terminals, but many locations also offer table games such as blackjack, poker, and roulette. As of the end of 2023, there were approximately 50 racinos operating in the United States. [1] Racinos operate in other countries around the world, as well, including Canada and France. [2]

History in the United States

Beginning in the late 1970’s, the popularity of horse racing began to decline in the United States, as evidenced by the inflation-adjusted decline in wagering by 52 percent from a peak in 1977 through 2006.[3] This decline in wagering occurred even with the introduction of initiatives to increase parimutuel wagering, such as of off-track betting and advance-deposit wagering, and is generally attributed to the introduction and growth of casino and lottery gaming.[3]

In 1990, West Virginia authorized the installation of several hundred video lottery terminals at Mountaineer Park as part of a pilot program that eventually became law four years later. [4]

In 1992, in response to the opening of the Foxwoods Native American gaming casino nearby in Connecticut, the Rhode Island legislature passed a bill permitting electronic gaming devices at the state’s two parimutuel wagering venues, Lincoln Greyhound Park and Newport Jai Alai. [5]

An early success story was the mid-1990s turnaround of the Prairie Meadows racetrack, in Polk County, Iowa. Prairie Meadows, which opened in 1989 but went bankrupt by 1991, was bought by the county government in 1993.[6] As reported in a January 2003 study for the Massachusetts State Lottery Commission:

In 1994, Iowa voters authorized slot machines at Iowa racetracks (including Greyhound tracks). Polk County spent an additional $26 million to convert the Prairie Meadows clubhouse into a casino and install 1,100 slot machines. On April 1, 1995 the slot casino (or "racino") opened for business. In the 12 months ended March 31, 1996 machine revenues totaled $119.3 million, enabling Polk County to pay off the $27 million bond issue that paid for the clubhouse casino conversion within that initial year and retire the track's initial $38.8 million bond issue 17 years early.[6]

Other states followed suit. Delaware authorized racinos in 1994, and Louisiana and New Mexico in 1997.[1] A number of larger states also enacted enabling legislation, including New York in 2001, Florida and Pennsylvania in 2004, and Ohio in 2011.[1] Some states, notably Massachusetts and Maryland, declined to specifically designate race tracks as casino locations, but nonetheless have awarded casino licenses to race tracks through open competitive bidding processes.[1]

Some other states have declined to authorize casino gambling within their states, but have authorized race tracks to offer historical horse racing machines, which are similar in appearance to slot machines but which award prizes based on the results of old horse races.[7]. This style of gambling was first introduced at Oaklawn Park in Arkansas in 2000.[7] Arkansas race tracks were subsequently authorized to offer casino gambling, however, several state, including Kentucky and Virginia, still offer this style of gambling at race tracks.[7]

In some states, certain racinos have been permitted to discontinue live racing and still been permitted to continue their casino operations. Many of these are former greyhound tracks that have closed as result of public sentiment turning against the sport on animal welfare grounds.[8] Only two greyhound tracks continue to operate in the United States, both of which are racinos in West Virginia. [9].

Today there are approximately 50 total racinos operating in 17 U.S. states, not including any tracks offering historical horse racing machines.[1] In 2023, the number one commercial casino in the United State outside of Nevada was a racino, Resorts World New York City located at Aqueduct Racetrack, with approximately $950 million in casino gaming revenue. [10]. Four other racinos were also in the top 20, as were two former greyhound racing facilities.[10]

References

  1. ^ a b c d e "State of the States 2024" (PDF). AGA. Retrieved 2024-05-23.
  2. ^ Rudd, Denis; Mills, Richard; Flainegin, Frank; Litzinger, Patrick (August 2009). "Racinos – The Marriage of Horse Racetracks and Casino/Slots-Style Gambling – Friends or Foes?". Journal of Case Research in Business and Economics. 1: 32.
  3. ^ a b Thalheimer, Richard (2010-04-02). "The Evolution of Racinos". Global Gaming Business Magazine. Retrieved 2024-05-23.
  4. ^ LaMarra, Tom (2012-02-28). "Optimism and Wariness as Mountaineer Reopens". Blood Horse Magazine. Retrieved 2024-05-23.
  5. ^ Gray, Ed (October 1, 1992). "Video games for dog days". Boston Herald.  – via NewsBank (subscription required)
  6. ^ a b Christiansen, Eugene Martin (2003-01-18). Analysis and Recommendations for the Massachusetts Lottery (re: MSLC RFR Lot #526) (PDF) (Report). Christiansen Capital Advisors. pp. 20–21. Archived (PDF) from the original on 2024-01-15. Retrieved 2024-01-14.
  7. ^ a b c "Historical Horse Racing Machines: Recent Trends and Future Impacts in Oregon" (PDF). 2021-09-17. Retrieved 2024-05-23.
  8. ^ Nichols, Mike (7 April 2012). "Dog tracks were the wrong bet (Opinion)". Milwaukee Journal Sentinel. Retrieved 8 October 2023.
  9. ^ Stimpson, Ashley (2023-06-12). "Saturday Afternoon at the Last Dog Track in America - Belt Magazine". beltmag.com. Retrieved 2023-12-29.
  10. ^ a b "Commerical Gaming Revenue Tracker CY 2023" (PDF). AGA. Retrieved 2024-05-23.
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