handle schmandle
its not 2000
purses and opportunities at all time high

The economic consensus from public finance experts, independent state auditors, and economists indicates that redirecting horse racing subsidies toward public infrastructure, education, or tax reductions would likely generate a significantly higher broad-based economic benefit for society as a whole.
While the horse racing industry argues that public funds support vital agricultural jobs, land preservation, and rural economies, macroeconomists view this debate through the lens of opportunity cost—the lost benefit of not choosing the next best alternative. [1, 2]
The economic trade-offs can be analyzed by comparing the impact of horse racing subsidies against these alternative public investments:
## Direct Economic Multipliers
Economic "multipliers" calculate how much total economic activity is generated for every dollar spent by the government.

| Investment Type | Economic Multiplier & Footprint | Primary Societal Benefit |
|---|---|---|
| Infrastructure (Roads & Bridges) | High (typically 1.5x to 2.0x). Directly reduces logistics costs for all businesses and improves regional commerce efficiency. | Permanent assets that serve the entire public and boost long-term productivity. |
| Education (Schools & Pre-K) | Very High (Long-term). Boosts future worker productivity, raises future tax revenues, and lowers public assistance costs. | Upgrades human capital; addresses skilled labor shortages across all industries. |
| Tax Reductions | Moderate to High. Puts cash back into the private sector, increasing consumer spending or private corporate investment. | Increases general economic liquidity and household purchasing power. |
| Horse Racing Subsidies | Low (Highly Concentrated). Money primarily inflates purses and breeder incentives. High leakage occurs as prize money often leaves the state. | Supports a niche sector, agricultural suppliers, and specialized equine employment. |

------------------------------
## The Economic Rationale for Redirecting Funds

*
* Public vs. Private Goods: Roads, bridges, and public schools are classic public goods that suffer from the "free-rider problem" if left to the private market. Because they benefit everyone but are unprofitable for a single person to build, public dollars spent here fix a market failure. Horse racing, conversely, is a private entertainment and gambling industry. Critics argue that subsidizing a private sport with public cash distorts the market to support an industry with declining natural consumer demand. [3, 4, 5, 6]
* The "Leakage" Problem: Independent fiscal studies—such as those evaluating [Pennsylvania's multi-billion dollar slot-tax subsidies](https://www.thecentersquare.com/pennsylvania/article_812c5dee-a6ac-11ed-bd87-b7978946c4c5.html)—have noted significant financial leakage. A large portion of subsidized purse money is won by out-of-state owners, trainers, and syndicates who do not reinvest those dollars locally. Conversely, a bridge repaired or a school built represents 100% local physical investment. [3, 7, 8, 9]
* Broad-Based Utility: Infrastructure and schools benefit every single industry, commuter, and family within a geographic region. Horse racing subsidies support a highly specific, concentrated micro-economy (e.g., hay/straw farmers, veterinarians, and jockeys). [2, 10]
*

## The Counter-Argument from the Racing Industry
Proponents of maintaining the status quo argue that the term "subsidy" is a misnomer. In states like New York and Pennsylvania, these funds are legally mandated shares of casino slot-machine revenue designed to compensate racetracks for the loss of gambling market share to casinos. The industry highlights that these funds preserve tens of thousands of agricultural acres from urban development and anchor secondary rural economies that might otherwise collapse. [1, 2, 11, 12]
Ultimately, from a strict, macro-level societal standpoint, spending millions on foundational public infrastructure or education creates a much larger, self-sustaining ripple effect through the broader economy than propping up a niche commercial entertainment industry. [3, 8]
Are you evaluating these economic impacts for a specific state budget debate (like Pennsylvania or New York), or are you looking for the exact mathematical formulas economists use to calculate infrastructure multipliers? [7, 13]

[1] [https://www.countryside-alliance.org](https://www.countryside-alliance.org/resources/politics/the-role-of-the-racing-and-breeding-industry-in-rural-communities)
[2] [https://pennhorseracing.com](https://pennhorseracing.com/pennsylvania-economic-impact/pennsylvania-economic-benefits/)
[3] [https://www.kidsoverhorseracing.org](https://www.kidsoverhorseracing.org/uploads/1/2/6/1/126191702/final_for_immediate_release_rhdf_5-26-2020final.pdf)
[4] [https://lizfarmer.substack.com](https://lizfarmer.substack.com/p/when-states-take-over-horseracing)
[5] [https://www.nytimes.com](https://www.nytimes.com/2025/02/28/opinion/horse-racing-government-subsidies.html)
[6] [https://www.chegg.com](https://www.chegg.com/homework-help/questions-and-answers/public-schools-parks-libraries-roads-paid-largely-tax-revenue--goods-create-free-rider-pro-q13484841)
[7] [https://www.thecentersquare.com](https://www.thecentersquare.com/pennsylvania/article_812c5dee-a6ac-11ed-bd87-b7978946c4c5.html)
[8] [https://www.thecentersquare.com](https://www.thecentersquare.com/pennsylvania/article_812c5dee-a6ac-11ed-bd87-b7978946c4c5.html)
[9] [https://www.tribtoday.com](https://www.tribtoday.com/news/local-news/2015/09/horse-subsidy-draws-debate/)
[10] [https://www.theplaidhorse.com](https://www.theplaidhorse.com/2025/01/13/the-economics-of-horse-racing/)
[11] [https://www.reddit.com](https://www.reddit.com/r/Pennsylvania/comments/1lxdm2q/pa_needs_to_stop_subsidizing_horse_racing_and_put/)
[12] [https://www.post-gazette.com](https://www.post-gazette.com/news/state/2024/01/10/pennsylvania-horse-racing-taxpayer-subsidy/stories/202401100080)
[13] https://www.endhorseracingsubsidies.com

Dayton
Over 1.7 million in purses and can't even handle 1 million. What a fucking embarrassment. The Meadowlands handles nearly 3 million with amateur races. 

Ohio is a cesspool.

handle schmandle
its not 2000
purses and opportunities at all time high