Horse Study Says Races Good for Iowa Economy

An expansion of horse racing at Prairie Meadows should be considered as a way to increase revenues at the racino, according to a study presented to the Iowa Racing and Gaming Commission at their meeting on January 15th at the Stoney Creek Inn in Johnston.

Dr. Richard Thalheimer of Thalheimer Research Associates in Lexington, Kentucky presented the results of a new study commissioned by Iowa’s horse industry that details the economic impact that horse racing has at the track, at county fairs, and on the farm. The study follows a previous report from Thalheimer Research Associates confirming an increase in slot machine revenue at the track when live horse racing is being conducted.

“We are very pleased to be able to provide the positive details of horse racing’s economic impact here in Iowa,” said Wm. Leroy Gessmann, President of the Iowa Horsemen’s Benevolent and Protective Association, one of the study’s sponsors. “These are hard numbers that confirm the need for and the positive impact that additional horse racing opportunities will provide for Prairie Meadows’ bottom line and that of Iowa’s horse industry.”

According to the study, the Iowa horse racing industry generated a total direct and indirect economic impact of $123 million in expenditures and 2,180 full time equivalent jobs in Iowa in 2007. Owner and trainer direct expenditures around the state include labor, feed and bedding, veterinarian care, transportation and boarding. Breeder expenses in Iowa include labor, stud fees, registration expenses, feed and bedding, veterinarian expenses, investment, and other fees.

Future success for Prairie Meadows and the Iowa race horse industry is dependent on many factors and how success is defined by the stakeholders, according to the study. Policy makers should consider the following as they proceed:

An increase in race days and/or horses in training per day results in:

- Increased pari-mutuel revenue both on-track and from simulcasts of live races to other state and national betting locations
- Increased slot machine revenue from the relationship of live racing to slot machine wagering
- Increased spending and employment by the race horse industry
Increases in purses result in:
- Increased wagering revenues
- Increased value and supply of race horse breeding stock with associated “green space”
- Increased spending and employment by the race horse industry.

The study was commissioned by the Iowa Thoroughbred Breeders and Owners Association, the Iowa Horsemen’s Benevolent and Protective Association, the Iowa Quarter Horse Racing Association, and the Iowa Harness Horse Association.