House Ag and Gaming committees hear testimony on threats to Pennsylvania's horse-racing industry

HARRISBURG — Lawmakers and industry representatives on Tuesday heard appeals to shore up Pennsylvania's horse-racing and breeding sectors as competition from new gaming platforms and long-term revenue declines strain funding that supports breeders, purses and thousands of ancillary jobs.

Representatives and testifiers told members of the House Agriculture & Rural Affairs Committee and visiting members of the Gaming Oversight Committee that revenue mechanisms enacted in Act 71 of 2004 and updated in Act 114 of 2016 helped stabilize the business but now face sustained erosion. "The horse racing industry is facing long-term effects" from changes in technology, gaming evolution and demographics, the Department of Agriculture's secretary said in prepared remarks.

The testimony drew three recurring themes: preserve the dedicated Racehorse Development Trust Fund and its breeder programs; invest in incentives to keep breeding and stallions in Pennsylvania; and market racing as a family and agricultural event to rebuild attendance and handle.

Brian Sanfraniello, executive secretary of the Pennsylvania Horse Breeders Association, presented data he said show a steep decline in the number of mares bred after transfers were taken from the Racehorse Development Trust Fund. He told lawmakers the assessments that fund breeders are "not funds of the commonwealth" but casino-derived revenues intended for the industry, and asked the committee to resist proposals that would redirect those dollars. "When you hear proposed raids on the fund, remember: it's not state money," Sanfraniello said, urging the legislature to protect the trust and restore predictability for breeders.

Breeders and trainers described the economics behind those appeals. Kathleen DeMasi, president of the Pennsylvania Thoroughbred Horsemen's Association, said producing a race-ready horse can cost roughly $50,000 and that her association's rehoming and scholarship programs grow out of the same racing economy. "We invest back into our community," DeMasi said, describing a program that has rehoused thousands of retired racehorses and supports workers who bought homes and built careers around the racetrack.

Small-business vendors emphasized the industry's ripple effects. Jay Arntz, who supplies hay and straw to Hanover Shoe Farms and other operations, said feeding-practice changes and fewer horses on backstretches have cut demand and hurt dozens of smaller suppliers. Peter Reifsnyder of Reifsnyder AgCenter described a roughly 46% decline in his winter sales compared with two years earlier, underscoring how local feed, tack and service businesses depend on track activity.

Representatives on both sides of the aisle pressed the administration and the industry for solutions. "We have to think creatively about how we incentivize breeding and preserve open space," Representative Dan Mao, co-chair of the committee, told the secretary, stressing that the industry supports farms, veterinarians and other rural employers.

Panelists offered possible steps: strengthen breeder-branding and stallion incentives to attract out-of-state breeding dollars, streamline the processing timeline for breeder awards (testimony described multi-step checks by commission, comptroller and treasury that can delay payments), and design marketing and special events to draw live audiences and families back to tracks. Harness representatives also noted that fewer race days reduce purses and employment, and called for targeted supports for sire-stakes and county-fair race programs.

No formal legislation or votes were taken at the hearing. Lawmakers said the hearing is the start of a longer process that will include meetings with tracks, casinos and other stakeholders to craft a strategic plan that balances gaming revenues, breeder incentives and land-preservation goals.

The committee closed the hearing by thanking testifiers and noting that staff will continue follow-up work and requests for data, with lawmakers indicating they plan to explore legislative and budgetary options in the coming months.