Study finds Iowa's horse racing industry needs to change to remain viable

A study conducted for the Iowa Racing and Gaming Commission has found that the state’s horse racing industry needs to make some changes to remain viable. The IRGC requested the study in November 2023 to gain an external perspective on the industry's future. Tina Eick, the Racing and Gaming Administrator, stated that the study's conclusion leaves no room for doubt.

“The study did make clear that, frankly, the status quo for quarter horse and thoroughbred horse racing in Iowa is not a good option. The report concluded that the current product in Iowa is not competitive and not of high interest to the public."

Eick believes that horse racing, like other forms of entertainment, faces significant competition.

“Forty years ago, horse racing and greyhound racing was all there was when it came to gambling in the state. Now there’s numerous ways for the public to gamble in Iowa and around the country."

The horse racing study presents several options to improve the Iowa system. 

“That would include a change to the current system, where purses are subsidized by the gaming revenue at the casino, and instead tie it to handle and simulcast earnings at the track. That change would give everyone, I guess, more skin in the game."

Eick mentioned that the report suggests broadening the industry's scope. 

“Another suggestion would be to look at creating a racing circuit with neighboring states or straight or states in the area, like Oklahoma or Minnesota. And again, that would be to create more interest and give Iowa horses more places to run."

The report includes suggestions for expanding betting options by increasing field size for each race, which could generate more interest from the betting public. Additionally, the report discusses alternatives for scheduling races, including dates, times, and the number of days for race events. Eick emphasizes that the report presents various options and urges action from horse racing organizations.

“The study, again, was to try to come up with some solutions, but all of that would need to be collaborative, and it’s not something that the Commission could do itself."

Racing and Gaming Commission Chair Daryl Olsen of Adubon says he likes the proposal put forth in the study, but also says everyone has to embrace them to make them work. 

“We can’t dictate any of the things that the study suggests. All we can say is, here’s a study, we encourage all parties to work together to try find the best answer."

Olsen says the future of the horse industry in Iowa depends on making changes. 

“Because I think the study was very clear, saying, if we do nothing, you know, that’s a bad option."

Olsen says the study took a thorough look at the industry and gives them a way to move forward. 

“You know, if there was a really, really easy fix, I think we’d all have already jumped on it and say, ‘Hey, let’s do that.’ I mean, I think there isn’t an easy fix."

The horse racing organizations have had some disagreements in the past, but Olsen says he is confident they will work together to make changes. 

“I really expect that they’re going to sit down and they’re going to say, there’s no sense squabbling over this, there’s no sense arguing over it, we need to look at it and see how we can implement some of these suggestions so we can make it better for everybody involved. So I am very, very optimistic."

Horse racing began at Prairie Meadows in Altoona in March of 1989. The track was granted a casino license in April of 1995.