Without Slot Machines, State Will Subsidize

Indiana’s horse racing industry has not been doing well, and has been trying to get slot machines legalized at the tracks to save them. With the approval of slot machines at the tracks, they would be able to increase their overall revenue and thus be able to make their bottom lines. Without the slot machines, they are unable to operate on their own.

However, the state of Indiana has announced that since slot machines have not been legalized they will continue to subsidize the horse racing industry in the amount of $27 million per year. Last year, more than $10 million went to Indiana Downs and Hoosier Park, with a matching amount going to the purses. The remainder of the subsidy went to breed development funds, for a total of $25.4 million. It is obvious that without the slot machines the tracks could not have come up with that money on their own.

Over the past ten years, the state has continued to subsidize the horse racing industry in the amount of almost $223 million. The industry currently receives $0.65 on every $3.00 admission tax paid by those that frequent Indiana’s slot machine casinos. Many have tried to get the slot machines at the tracks and have not been successful. However, should slot machines every be legalized at the racetracks, the subsidy will most likely be eliminated.

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