Commission hears wagering declines and Donahue Fund balance; projected fund balance to fall below OFM minimum

At the Feb. 13 meeting, Executive Secretary Amanda Benton presented the commission’s wagering and financial reports and summarized the Donahue Fund interest status.

Benton said January parimutuel wagering totaled $2,410,550.30, an 11.9% decrease from January 2025, and that the December advanced‑deposit wagering (ADW) handle was $5,823,826.46, down 15.6% from the prior year. She reported the total ADW handle for 2025 was $99,318,453.28, down 6.6% from 2024. Changes in the pari‑mutuel tax rate (from 1.803% to 1.3%) and changes to the source market fee retention (6% to 10%) were cited as contributors to month‑to‑month and year‑to‑year differences in operating account distributions.

Benton reported a December fund balance of $542,734 and a projected fund balance at the end of the biennium of $243,883, which falls short of the Office of Financial Management’s $400,000 minimum. Based on current projections, the fund is expected to dip below the OFM threshold in September unless revenues or appropriations change. Commissioners discussed whether pending legislative budget language (an errata request including $600,000 for ISA fee coverage) would remain in the enacted budget and noted continued outreach to legislators.

On the Donahue Fund (statutory distribution of interest earned to nonprofit race meets), Benton said interest earned in 2025 totaled $11,509.57 and the fund has accumulated $42,642.97 since 2019; because no nonprofit race meets are scheduled for 2026, the interest would not be distributed this year. Commissioners discussed options for preserving the accrued interest — including potential agency requests this fall to avoid general‑fund sweeps — but no formal action to reallocate the funds was taken at the meeting.