Racino (plural: racinos) is a portmanteau of "racetrack" and "casino," referring to a combined horse racing track (or other live parimutuel betting facility) and casino. The term originated in the United States in the mid-1990s.
Definition
A racino is a facility that operates both live or simulcast parimutuel wagering (typically horse racing or greyhound racing) and casino-style gambling. In some jurisdictions, the casino component is limited to slot machines or video lottery terminals (VLTs); in others, table games such as blackjack, poker, and roulette are also permitted.
Etymology
The word is a blend of rac(etrack) + (cas)ino, first recorded in use around 1995.
History
The racino concept emerged in the United States beginning in the early 1990s as a response to declining popularity and revenue in the horse racing industry. From a peak in 1977, inflation-adjusted wagering on horse racing declined by approximately 52 percent through 2006, largely attributed to the growth of casino gambling and lottery gaming.
Key milestones include:
- 1990: West Virginia authorized a pilot program for video lottery terminals at Mountaineer Park (now Mountaineer Casino, Racetrack and Resort), which became law in 1994.
- 1992: Rhode Island passed legislation permitting electronic gaming devices at Lincoln Greyhound Park and Newport Jai Alai.
- 1994: Iowa voters authorized slot machines at racetracks. Prairie Meadows in Polk County, Iowa, which had gone bankrupt in 1991, was converted into a racino and opened on April 1, 1995. Within its first year, machine revenues totaled $119.3 million, allowing the county to retire bond debt years ahead of schedule.
- 1994: Delaware authorized racinos.
- 1997: Louisiana and New Mexico authorized racinos.
- 2001: New York authorized racinos.
- 2004: Florida and Pennsylvania authorized racinos.
- 2011: Ohio authorized racinos.
- 2019: Illinois authorized racetracks to seek casino licenses.
- 2021: Nebraska authorized racetracks to seek casino licenses.
Prevalence
As of the end of 2023, approximately 50 racinos were operating in 17 U.S. states. In 2023, the top commercial casino in the United States outside of Nevada was a racino: Resorts World New York City at Aqueduct Racetrack, with approximately $950 million in casino gaming revenue. Racinos also operate in other countries, including Canada and France.
Economic Model
Revenue from slot machines at racinos is typically divided among four categories: operating costs and payouts to gamblers, state taxes, prize money (purses) for horse owners and jockeys, and profit for the racino operator. The infusion of casino revenue has allowed many struggling racetracks to offer significantly higher purses, attracting higher-quality horses and increasing simulcast revenue.
Types of Gaming
- Slot machines – the most common gaming feature.
- Video Lottery Terminals (VLTs) – electronic gaming machines connected to a central lottery system.
- Table games – blackjack, poker, roulette, and others, where permitted by local law.
- Historical horse racing machines – machines similar to slot machines that award prizes based on the results of previously run horse races; used in some states that have not authorized full casino gambling.
