Yesterday, February 2, the Department of Legislative Services (DLS) briefed a subcommittee of the Senate Budget & Taxation Committee on Governor Moore’s FY27 budget proposals for the Maryland 5 Star at Fair Hill, for the Pimlico Plus project, and for Thoroughbred racing operations. The Maryland 5 Star at Fair Hill has been funded from the Major Sports and Entertainment Events Program Fund, which is overseen by the Maryland Stadium Authority (MSA). The Pimlico Plus project is funded, in part, by bonds issued by the Maryland Economic Development Corporation (MEDCO).

We have extracted pertinent portions of the briefing documents below.

The Maryland 5 Star at Fair Hill

The DLS analysis of the MSA budget proposal notes that “[t]he Major Sports and Entertainment Events Program Fund (MSEEPF) is capitalized at $10 million . . . The fund was created in a time of budget surpluses but may no longer be affordable as it is currently structured . . . . .

The Annual Maryland 5 Star at Fair Hill has received approximately $3 million annually since the fund’s inception. This event also received substantial State funding for capital improvements on State lands. Since awarding large ongoing grants can crowd out new grants, MSA should consider limiting the number of years that an event can receive grants. Events permanently receiving large State grants can be moved to programs in other agencies like the Department of Commerce or find a pathway to self-sustainability . . . . . . . So that new grants are not crowded out by large ongoing grants, DLS also recommends that grants for the Annual Maryland 5 Star at Fair Hill be deleted.”

Pimlico Plus

From the DLS Analysis of the Maryland Stadium Authority budget proposal:

In 2020, the General Assembly “authorized $375 million in bonds to renovate Pimlico Race Course and Laurel Park . . . . Since calendar 2020, planning delays, project scope changes, inflation, and higher interest rates increased costs. By January 2024, costs to renovate only Pimlico ranged from $388 million to $399 million.”

In 2024, the General Assembly “increased total debt service costs to $400 million . . . Funds no longer support renovations to Laurel Park. Instead, the funds support the purchase and construction of a training facility since Pimlico does not have sufficient space for a training facility.

. . . Total funds appropriated and authorized now exceed $525 million.

In May 2025, at the recommendation of the Maryland Thoroughbred Racetrack Operating Authority (MTROA), the Board of Public Works approved the purchase of the Shamrock Farm property in Carroll County for $4.5 million to serve as an equine training facility with room for more than 800 horses. A consolidated equine facility is an integral portion of the Pimlico redevelopment plan, which concentrates all racing activities in Baltimore City but necessitates adequate training space elsewhere for the majority of active Maryland thoroughbreds.

. . .

MSA has not completed a training center construction cost estimate. The property is in a hilly region, and concerns were raised about the cost of grading the property to accommodate thoroughbred horse training at the facility. In January 2026, MSA announced that it reached a tentative agreement with The Stronach Group to purchase Laurel Park for use as the training facility. Since Laurel Park is already developed, MSA cites construction savings with the Laurel Park option compared to constructing a new facility. This decision raises the following issues:

  • What is the scope of the Laurel Park renovation? How will the renovated Laurel Park training facility be used? Will there be other activities in addition to training horses?
  • What are the estimated total costs for Laurel Park? What are the estimated total project costs, including Pimlico?
  • Will proceeds from the $400 million in planned issuances support Laurel Park?
  • MSA indicates that the Maryland Economic Development Corporation (MEDCO) could issue bonds. What would the bond proceeds support and what funds would support the debt service?
  • What will happen to the Shamrock Farm property?

Prior projections have consistently underestimated costs. For example, the 2020 legislation provided $180 million for Pimlico and another $40 million for contingencies for both Pimlico and Laurel Park. At $400 million, the most recent estimate is twice as much as the initial estimate. MSA should be prepared to brief the committees on the latest cost estimates and attempts to keep costs within the $525 million provided for this project.”

From the DLS analysis of the Maryland Economic Development Corporation budget proposal:

“MEDCO is now the parent entity for [The Maryland Jockey Club (“TMJC”)], which maintains operational contracts for day-to-day racing operations such as concessions, maintenance, security, and off-track betting . . . and will operate the Preakness Stakes at Pimlico beginning in calendar 2027. MEDCO reports that TMJC faces annual losses of $7 million and is seeking additional sources of revenues. The club also plans to seek a $2 million to $3 million loan to begin procuring security equipment and other resources for the 2027 Preakness.”

…

“An October 2025 report by OLA found that MTROA did not establish written agreements with TMJC and did not ensure that MTROA’s procurement of consulting contracts identified the best interest and that invoices were appropriate to pay. While MTROA no longer exists, MEDCO should take steps to avoid duplicating the same issues found in the MTROA audit . . . . MEDCO should discuss policies and procedures that it is using to avoid contract issues similar to those identified in the MTROA audit.”