The horses head down the stretch and the excitement builds. Fans leap to their feet and cheer on their jockeys. Within a few minutes the horses race across the finish line. Some bettors celebrate and others are disappointed with the results. Hopefully that ticket is a winner and if it’s not, maybe a few spins of the reels at the slot machines or some blackjack play might instead bring some winnings.
These are some of the gambling options one might find in the unique gambling properties known as “racinos” – a combination of the words a mash-up of “casino” and “racetrack.” These popular destinations have grown in popularity in recent years and some even offer modern amenities one might experience in Las Vegas.
Birth of the Racino
It may seem like a simple idea. Horse racing bettors may want to spend a few minutes playing slot machinesor at the blackjack tables when not making those daily double and trifecta selections. Or perhaps when it’s not racing season, an empty track might benefit financially from running a casino year-round, complete with a nice hotel, great restaurants, and some simulcast horse betting as well.
But the idea didn’t come to fruition until 1995, when the Prairie Meadows racetrack in Iowa added some slots in an effort to bring in more customers. At that time, the idea of a racino was a novel idea but the effort revived the racetrack. That success also inspired other states to also legalize slots and other gaming options at horse and dog tracks.
“The initial premise behind permitting casino gaming at racetracks in states with parimutuel racing and wagering was to preserve and promote horse and dog racing,” Global Gaming Business magazine notes. “The parimutuel racing industry was recognized as having been adversely affected by competition from other forms of gaming. Specifically, provisions were included that required a percentage of slot machine revenue to be allocated for payment of purses, to owners of racing animals at the racetrack, and in some cases breeders of racing stock in the state in which the racinos were located.”
Racinos were soon flourishing across the country with slot machines, video lottery terminals, and table games found at many tracks. Many of these racinos are now full-service resorts with great hotels, restaurants, showrooms, and major entertainment options.
Historical Horse Racing Machines
Another interesting aspect of the American racino and gaming industry is the emergence of historical horse racing (HHR) machines, which further intertwines gaming and racing.
The games were invented in 1997 and are similar to slot machines. As the name implies, the results are based on the results of past horse races. The games are officially considered a type of parimutuel wagering (just like horse racing, with money pooled and paid out based on the odds of winning), and players can officially look at handicapping information when playing.
Early versions looked like race betting terminals, but now most look more like slot machines. Most HHRs now feature symbols on spinning reels that correspond to the results of the player's wager. A video of the race can be found in a small video in the corner of the screen while others may show a computer-generated animated reenactment of a race.
HHRs have become big business. Traditional horse racing companies like Churchill Downs (also the name of the track that is the home of the famed Kentucky Derby) owns several HHR gaming facilities. The company began constructing the $100 million Owensboro Racing & Gaming HHR facility this year as an extension of Ellis Park racetrack in Henderson, Kentucky, which already has HHR games as well.
However, the machines initially sparked some controversy in the state, where casino gaming is technically illegal. But most gamblers would probably not be able to tell the difference between these games and traditional slots. Opponents argue that the machines are “horse racing” games in name only and most don’t even have a link to horse racing in any way. They believe the games are simply slot machines just with a different name.
Supporters argued that the games have played a critical role in shoring up the state’s horse race industry in recent years by adding to purses and tracks’ financial security. Kentucky legilators officially made the games legal in February.
“If it were not for historical horse racing, Ellis Park would be closed and Churchill Downs would not be rebuilding Turfway Park,” Elisabeth Jansen, executive vice president of the Kentucky Equine Education Alliance, said in 2021 of adding HHRs to tracks in the state. “Without historical horse racing, we would have a few days of racing at Churchill Downs and a few days of racing at Keeneland and that would be about it.”
Historical horse racing games remain controversial in other states, but can are or have been in operation in Minnesota, Alabama, Idaho, Kansas, Louisiana, New Hampshire, Oregon, Virginia, and Wyoming.
Growth of the Industry
As racinos have grown in popularity over the last decade, they have become even more critical to the horse racing industry. In many locations, revenues generated from casino gaming also help add to purses that horse owners can win on the track. They also help fund tracks and pay employees.
The concept of the racino can also be found in other parts of the world outside the U.S. In Canada, gamblers can find racing/casino options in Alberta, British Columbia, Manitoba, Ontario, Prince Edward Island, and Quebec.
One of the best of those, and perhaps one of the best in the world, was unveiled in 2023 when Great Canadian Casino Resort Toronto opened next to Woodbine Racetrack. The property features a modern resort casino with “transformative architecture” and 328,000 square feet of gaming space with 4,800 slot machines and 145 table games as well as VIP rooms and sports betting kiosks.
The casino is located on 33 acres adjacent to Woodbine and also boasts a 400-room hotel, 5,000-person live entertainment venue, and numerous on-site dining options. The $1 billion resort Toronto is now the largest casino property in the country and one of the largest private sector projects in Ontario. This racino really ramped up the experience.
Another example of international racinos can be found in Buenos Aires, Argentina. The Hipodromo Argentino de Palermo features opened in 1876 and is one of the most modern tracks in South America and also houses two buildings for casino gaming with more than 1,000 slot machines.
In recent years, casino gaming has greatly cut into the horse racing market and many see adding casinos to these complexes as a way to keep racing alive. In turn, the facilities have also helped grow the casino industry in the U.S., Canada, and other locations.
“While the introduction and growth of racino gaming has been a mixed blessing to the race horse industry, it has been a boon to the casino business,” Global Gaming Business magazine reports. “It has had the intended effect of increasing purses with resulting increases in spending, employment and preservation of green space by the industry in state and local economies. Further, the presence of live and import simulcast races at racetracks has been found to increase slot machine wagering significantly.”
