Maryland Secures Preakness Stakes IP, Thwarting Churchill Downs’ Bid

Maryland Secures Preakness Stakes IP

The state of Maryland has officially exercised its right to acquire the intellectual property (IP) rights of the Preakness Stakes, the second jewel in horse racing’s Triple Crown. This move thwarts an $85 million bid previously made by Churchill Downs, the company that owns the Kentucky Derby. The state’s action ensures that a cornerstone of Maryland’s cultural and economic heritage remains under its control.

State’s Right of First Refusal

Maryland’s business regulations grant the state a right of first refusal for the IP of the Preakness Stakes and the Black-Eyed Susan Stakes, a race for fillies. Under this statute, the state is able to match any competing offer, which it has now done with Churchill Downs’ April bid. The state’s decision was announced by Governor Wes Moore, who emphasized the importance of the race to Maryland’s identity and future in horse racing.

Governor Moore stated, “The Preakness Stakes is more than just a race: It is a cornerstone of Maryland’s history, culture, and economy. This decision secures a vital asset for our state, allows Maryland to shape its horse racing destiny, and by leveraging the Preakness’s iconic status and partnering with industry experts to enhance the fan experience, preserve Maryland’s position as a key power player in the Triple Crown for generations to come.”

Churchill Downs’ Position

Churchill Downs, which hosts the Kentucky Derby, had expressed interest in owning the Preakness IP, aiming to consolidate ownership of two of the three Triple Crown races. In a statement, Churchill Downs CEO Bill Carstanjen acknowledged the state’s desire for the Preakness IP as a “state-owned asset.” While the company’s bid was matched, Churchill Downs indicated a willingness to continue working with Maryland’s leadership.

“We remain committed to working with the Governor and other elected leaders and horse racing constituents in Maryland to fully realize the potential of a redeveloped Pimlico and Preakness Stakes within the Triple Crown and the broader sports and entertainment landscape,” Carstanjen said. This suggests Churchill Downs may be preparing for further negotiations or potential future opportunities related to the race.

Financial Implications and Future Development

The acquisition by the state of Maryland will not be funded by taxpayer money from the general fund. Instead, the purchase will be financed through the issuance of a tax-exempt revenue bond. This debt will be repaid by future revenues generated by the Preakness Stakes and Black-Eyed Susan Stakes, including income from wagering, ticketing, and sponsorships.

Furthermore, Maryland is already investing significantly in the Pimlico Race Course, the home of the Preakness. The Maryland General Assembly has authorized the Maryland Stadium Authority to issue $400 million in bonds for the redevelopment of Pimlico. This redevelopment aims to transform the facility, create over 500 jobs, and increase annual racing days from approximately 15 to over 100, establishing it as the permanent home for Maryland Thoroughbred racing.

Impact on Video Poker and Gaming

While this news directly concerns horse racing, it highlights significant developments within the broader U.S. gaming and entertainment landscape. Major gaming corporations like Churchill Downs are actively involved in acquiring and developing significant entertainment assets. State-level control over iconic sporting events can influence regulatory environments and future partnerships within the industry. For players interested in the business side of gaming, these developments underscore the complex interplay between corporate interests, state governance, and the preservation of popular sporting traditions.

Key facts

Source: Casino.org News, https://www.casino.org/news/churchill-downs-preakness-bid-thwarted-by-maryland/