Future of state’s horse sector may depend on racetracks

‘‘But the racetrack is just the top of the ship,” Hopkins said. ‘‘If racing facilities are taking in less revenue, it means there is less money to reinvest in Maryland’s horse industry.”

That industry comprises a wide variety of businesses, from riding stables and tack shops to the veterinarians who treat horses, farmers who grow feed for them and farriers who shoe them.

After years of defeating slots initiatives, the General Assembly in its special session in November decided to put the matter to voters in a referendum that could allow 15,000 slots terminals at sites in Baltimore City and Allegany, Anne Arundel, Cecil and Worcester counties. If the referendum is approved, slots parlors are likely at Laurel Park in Anne Arundel County and Ocean Downs on the Eastern Shore.

Officials estimate slots would generate $700 million a year in state tax revenue.

But it may come too late to reverse a steady decline in racing, according to some. Slots parlors operating for the past several years in Delaware and West Virginia and most recently in Pennsylvania siphon horse industry resources and gambling revenues from Maryland thoroughbred and harness tracks.

In a study conducted for Gov. Martin O’Malley (D), labor Secretary Thomas E. Perez said, ‘‘It is clear the Maryland’s once-vibrant horse racing and breeding industries face stiff competitions from their counterparts next door, now thriving on subsidies from slot machine gambling.”

A horse-rich state

Robert Burk, executive director of the horse industry board in the state’s Department of Agriculture, fears that if Maryland’s strong infrastructure support for racing declines — including the breeding industry — there will be ripple effect into the state’s recreational or pleasure horse activities.

Maryland is the nation’s most ‘‘horse-dense” state, with eight per acre. Only 40 percent of its 90,000 to 100,000 horses are in the racing industry.

Maryland’s entire horse industry assets are worth $5.2 billion, with an annual economic impact of $1.6 billion, according to the American Horse Council Foundation.

The other 60 percent of the state’s horses are in the recreational side of the industry, which appears to be thriving. From 2003 to 2007, the number of licensed stables increased from 384 to 540. The number of indoor riding arenas in the state has about doubled, according to observations by state inspectors, Burk said.

In Maryland there are five horse trails in national parks, 20 in state parks and 20 in local parks. There are also about 120 riding programs run commercially for recreation and physical, mental and emotional therapy.

‘‘Recreational jumping, dressage [highly disciplined training], trail riding and therapy — it works the whole body and mind — are all increasing,” Burk said.

Recreational riding ‘‘is absolutely growing,” said Anne Dattels, general manager of Meadowbrook Stables in Chevy Chase.

Thousands of people visit the Montgomery County-owned Meadowbrook each year, with nearly 300 taking riding lessons in the Rock Creek Park area. Montgomery is one of the state’s leading equine counties, with 11,000 or 12,000 horses, according to Jane Seigler, vice president of the Maryland Horse Council and a member of the county’s Agricultural Advisory Committee.

Statewide, ‘‘there is still a critical mass of animals in racing that leads to a sophisticated population of support services,” Seigler said. ‘‘Racing, because of its money, attracts the best vets and farriers.”

Eventually,‘positive impact’

If racetracks get slots, ‘‘it will certainly have a positive impact first in racing, but it will take about 18 to 20 months to see,” said Hopkins, the racing commission's executive director.

But that may not be enough to save horse racing in Maryland, said former racehorse trainer Lisa Hackett, now manager of the 18-horse pleasure-riding Black Dog Farm in Frederick. She said dilapidated racing facilities would still need better advertising and promotion as a family activity. Other major tracks such as Arlington Park in Chicago offer pony rides, face painting and other promotions to bring in families, she said.

Before she moved to Maryland in 1991, Hackett was an exercise rider on thoroughbreds at Belmont Park in New York.

‘‘I worked for some of the best trainers and it is a wonderful sport,” she said. ‘‘It is a shame what’s happened to Maryland. When I came here there was not really a fan base. Slots is their last hope to get interest in the horses. The revenue flow in the racetracks will stabilize the facilities. But I think they jumped on the bandwagon too late. Trainers are leaving.”

Veterinarian Michael D. Erskine of Damascus Equine Associates in Mount Airy is among those who say the state’s horse industry depends on the racing sector.

A racehorse’s career typically runs five to seven years, but they often live into their 30s, and they ‘‘represent a source of recreational sport: jumpers, dressage and trail.”

Hackett said she has several former racing thoroughbreds ‘‘and we give them new careers.”

This report originally appeared in The Business Gazette.

Maryland’shorse industry

About 28,800 full-time employees, including breeders, handlers, farmers and suppliers.

65,000 people involved as owners, providers, employees and volunteers.

Uses about 10 percent of land area.

20,000 places where horses are kept.

2005 economic impact of $1.6 billion estimated at three times that of all the state’s college and professional sports franchises combined.

$5.2 billion in total assets.

Sources: American Horse Council, Maryland Department of Agriculture