Virginia's Horse Racing Industry Touts Economic Impact

Fredericksburg VA

13 April, 2021

11:13 AM

Description

VIRGINIA — The horse racing industry in Virginia generated an estimated economic impact of $542.1 million in the state in 2019, according to a study commissioned by the industry. The industry's total state tax revenue for 2019 was estimated at $26.5 million. The estimated economic impact of horse racing events and visitor spending in Virginia was $68.7 million in 2019. And jobs supported in 2019 by the horse racing and breeding industry was estimated at more than 5,000. The study was commissioned by the Virginia Equine Alliance, the industry's organizational body that promotes the racing and breeding industry throughout the state. Chmura Economics and Analytics, a research consulting firm in Richmond, conducted the study. Horse racing took a hit in Virginia in 2014 after the closure of Colonial Downs' racetrack. The General Assembly took steps to revive the industry, most notably the passage of Historical Horse Racing machines in 2018, that provided the revenue to re-open Colonial Downs in New Kent County, east of Richmond. According to this study, the economic impact is likely an underestimation of the full potential impact in 2019. Colonial Downs race track was only open for nine months in 2019. There were 18 race days, attracting 42,000 spectators. In future years, those racing days are expected to likely double, generating even more of an economic impact, according to the study. Not everything is rosy for the industry. Horses used in racing continue to die on U.S. tracks with great frequency. In late 2020, the Horseracing Safety and Integrity Act was signed into law by President Donald Trump. The act aims to standardize medication and safety rules in horse racing nationwide. It also hopes to bring national transparency in the area of horse fatalities. At the Charles Town horse racing track in West Virginia, eight horses have already died in 2021. That number surpasses much bigger tracks like Santa Anita Park in California and Belmont Park in New York.