By John Scheinman
Special to The Washington Post
Saturday, October 4, 2008

Competitive pressure from mid-Atlantic region racetracks that have slot machines brought Maryland racing to a new low this fall when the Maryland Jockey Club scrapped the remaining open stakes races from its schedule.

While once-anemic Charles Town Races & Slots in West Virginia flexed its growing financial muscle and announced a $1 million race next spring for older horses, Laurel Park couldn't find a way to pay for the Frank J. De Francis Memorial Dash, the Safely Kept Stakes and the historic Laurel Futurity and Selima.

Those races attracted top-class runners and the focus of bettors across the country. Their elimination furthered Maryland's descent from the ranks of leading racing states and left Maryland Million Day this afternoon at Laurel as the lone major highlight on the calendar for the rest of the year.

"It's so depressing to lose all the stakes races," said trainer Linda Albert, whose 9-year-old Off the Glass will seek to win the $50,000 Maryland Million Starter Handicap for a third time. "We still have the Preakness, but we lost the De Francis and the [D.C.] International and all those races. Nobody even notices we're here because we don't have any stakes races."

The Maryland Million, with 12 races worth a combined $1.68 million in purses for runners sired by Maryland stallions, is the exception. It has withstood the severe economic decline in state racing primarily because of its funding structure and commitment by breeders. Last year, the event drew 23,917 fans, and another large turnout is expected today.

The late ABC sportscaster Jim McKay came up with the Maryland Million after attending the inaugural Breeders' Cup in 1984. The state's breeders coalesced around the idea, seeing it as a powerful showcase for the state's stallions.

While the purse account for daily racing in Maryland is directly tied to the wagering handle, the Maryland Million, modeled on the Breeders' Cup, draws its funding from fees paid by breeders for stallion and foal certification, mares bred, race nominations and a small amount from corporate sponsorships.

Instead of returning to the horsemen's purse account, a portion of the handle from Maryland Million races -- $234,000 last year, according to the program's secretary-treasurer Katherine Voss -- goes right back into the event.

Also, the state Racing Act of 2004 took a percentage of the daily wagering handle earmarked for a failed capital improvements bond fund and redirected it to a special fund that supported the Maryland Million. The change allowed the event to increase purses from $1 million to more than $1.6 million, but Voss said poor business at the state's tracks may force a cutback.

"It's been dropping for years," Voss said of the daily wagering handle. "I think we're in a vicious cycle. Not too many people agree with me [about] eliminating Sunday racing the past few years, [but] you can't build business when you're not racing on days people can come. The other reasons are far more insidious, like off-shore betting."

The Maryland Million received $852,000 last year from the special fund, but budgeted with expectations of $725,000 this year, Voss said. "And we think it's going to be off. Our handle has taken a precipitous drop this year."

Maryland Jockey Club President Tom Chuckas said out-of-state wagering on Maryland racing is down 30 percent during the fall meet. He agreed with the trainer Albert, who said the stakes cuts have lowered Maryland racing's visibility.

"The Maryland Million is the one big fall event running. It gives us the opportunity to showcase Maryland breds. For quality racing, a stakes program is absolutely necessary."

The state racing and breeding communities are awaiting Election Day, when voters will decide a referendum on slot machines that would pump $80 million a year into purses and bred fund accounts. They believe the outcome on slots will determine the fate of the sport.

Asked if she is optimistic, Voss said: "Ask me after November 4. If that doesn't pass, we're in serious trouble here in Maryland."