Pennsylvania Governor Tom Wolf recently announced that he may shut down horse racing in the state as of October 30, 2015.
The announcement comes as a result of a budget standoff regarding funding for racetracks. Pennsylvania’s Department of Agriculture provides oversight of the horse racing industry, which includes the funding for horse drug testing. Tom Wolf’s proposed budget would have the industry picking up the tab for the drug testing, which could save the state $7-9 million per year.
According the Department of Agriculture, revenue created by horse racing has been rapidly declining. From 2001-2014, taxable wagers have declined 71 percent. Wolf’s office asserts that this decline in revenue has created a $9 million deficit, which can be closed by shifting the drug testing costs. Some claim that the legalization of slot machine and casino gambling is partly to blame for this decline.
Wolf is threatening to shut down the entire horse racing industry if a solution to the budget impasse is not reached by October 30th. Such a shut-down would be problematic for more than just horse racing fans since the horse racing industry in Pennsylvania employs over 23,000 people and generates $1.6 billion in economic activity.