Committee advances temporary gaming-tax exemption for Ruidoso Downs after flood damage

The House Commerce & Economic Development Committee advanced House Bill 447 on a motion to give the Ruidoso Downs Racetrack a temporary exemption from the gaming tax through 2029 to help the facility recover from a catastrophic combination of wildfires and flooding.

Sponsor Representative Vincent said the measure is a four-year, temporary exemption intended to help stabilize a racetrack that the sponsor and supporters described as an economic anchor for Lincoln County and the broader New Mexico breeding and racing industry. "The economic impact to Lincoln County and surrounding areas is a $160,000,000 on an annual basis," the racetrack's manager told the committee, recounting damage the operation sustained and describing roughly $12,000,000 in losses so far.

Supporters included Lincoln County officials, representatives of other racetracks and racing industry groups, the New Mexico Racing Commission counsel and local breeders, who said the racetrack supports regional jobs, sales and tourism. Thorpe Padilla, speaking for the Mescalero Apache leadership, said the tribe expects economic ripple effects for reservation-area businesses though the tribe itself will not directly benefit from the tax break.

Opponents and public commenters argued the racetrack had been warned about flood risk for years and that the owners' failure to insure the property should not create a special tax break. Vanessa Alexander, speaking in opposition, said management had been aware of flood risk and that an owner who failed to insure should be responsible for cleanup. Representative London said in an explanation of her vote that the state should not underwrite the cost when an owner did not carry insurance.

Committee debate covered the scope of the exemption (the sponsor said it applies to the racetrack's gross gaming receipts tied to racing operations rather than gaming statewide), interactions with federal recovery programs (sponsors said they had engaged FEMA and the Army Corps and expected FEMA-related costs), and the bill's economic assumptions. Testimony cited FEMA estimates for eligible expenses and the racetrack's own $12 million in direct losses; sponsors said FEMA expense estimates were about $15.8 million for the disaster overall. Representative Matthews asked whether the exemption is retroactive; the sponsor said it begins in July and sunsets in 2029.

On procedure, the committee recorded a motion to give HB447 a due pass. The committee clerk recorded a final tally reported in the hearing as 6 yes, 4 no on the due-pass motion; multiple members later explained their votes. The record shows the bill will go to the tax committee next for further review.

If enacted, the bill would exempt the racetrack's racing-related gaming receipts from state gaming tax for a limited period (the sponsor identified July 2025 through 2029 as the window). Committee discussion flagged several follow-ups for later committees, including how the bill interacts with tribal compacts, whether similar relief might be sought by other facilities after disasters, and whether the state should set precedent for owner uninsured losses.

The committee record also includes public comments documenting industry support and opposition, and several members requested more detail on FEMA reimbursements, insurance status and precise fiscal impacts before the bill advances further.