Key facts
- Maryland will match Churchill Downs' $85 million offer for the Preakness Stakes and Black-Eyed Susan Stakes branding rights.
- The state's decision secures a vital asset and allows Maryland to shape its horse racing future.
- The $85 million cost will be funded by tax-exempt revenue bonds, not general fund tax dollars.
- Repayment of the bonds is expected from race-generated revenue including ticketing, wagering, and sponsorships.
- The Maryland Jockey Club will take over control from 1/ST Racing, with plans for year-round racing at Pimlico.
- Pimlico Race Course's grandstand is expected to be ready by May 2028.
Maryland announced it will exercise its right of first refusal to match an $85 million offer from Churchill Downs Incorporated for the intellectual property of the Preakness Stakes and the Black-Eyed Susan Stakes. Governor Wes Moore stated that the decision secures a vital asset for the state and allows Maryland to shape its horse racing destiny.
The state will fund the $85 million acquisition through a tax-exempt revenue bond issuance, which will be repaid by revenue generated from the race, including ticketing, wagering, and sponsorships. No general fund tax dollars will be used, and the fee paid to Churchill Downs Inc. is expected to escalate over time.
Churchill Downs Inc., which operates the Kentucky Derby, had announced in April its intent to purchase the branding rights from 1/ST Racing, with plans to license them back to Maryland annually for staging the races. The Maryland Jockey Club, a nonprofit organization, is set to take over control from 1/ST Racing, with plans for year-round racing at Pimlico Race Course, the traditional home of the Preakness. The races were temporarily moved to Laurel Park this year due to reconstruction at Pimlico, with the expectation that the full grandstand will be ready by May 2028.