Commercial
Racino
Racino: racetrack plus casino
Definition
A racino is a racetrack that is also licensed to offer casino-style gaming, usually slot machines or video lottery terminals and sometimes table games, with part of the gaming revenue directed by law to the racing industry for purses and breeding programmes. The word combines "racetrack" and "casino".
Racinos developed in US states that wanted to support declining live racing without licensing standalone casinos: the track keeps a share of machine revenue, the state takes tax or lottery proceeds, and horsemen receive a portion that props up prize money. In Ohio, the state lottery oversees video lottery terminals at seven racetracks. In New York, the video lottery facilities linked to the state's central system include tracks such as Yonkers Raceway and Saratoga. Many racinos have since grown into substantial casino resorts, but their licences often remain tied to continuing live racing.
Key takeaways
- A racino is a racetrack with a licence for casino-style gaming, usually slots or video lottery terminals.
- The model was designed to fund live racing: a statutory share of gaming revenue goes to purses and breeding programmes.
- Ohio's lottery oversees VLTs at seven racetracks, and several of New York's video lottery facilities are at racetracks.
- Gaming REITs own racino real estate too: VICI's portfolio includes JACK Thistledown Racino and MGM Northfield Park in Ohio.
Why it matters
Racinos sit where gaming policy and agricultural policy meet. For legislators, adding machines to existing tracks was a way to protect jobs in breeding and training without opening standalone casinos, so racino laws often hard-wire a revenue share to purses and require a minimum number of live race days. That makes racino economics a three-way split between operator, state and horsemen, and a recurring political fight over whether gaming revenue should keep subsidising racing as attendance falls.
For investors and suppliers, racinos are an important part of the regional US land-based casino market. They buy machines and casino systems like any casino, or operate inside lottery-run VLT networks where the lottery controls the central system, and their property has become an asset class: VICI's 10-K lists JACK Thistledown Racino and MGM Northfield Park among its Ohio holdings, leased to operators on long-term terms. The underlying racing licence also brings pari-mutuel wagering and, in some states, historical horse racing machines into the same building.
The structural debate is decoupling: whether a racino can reduce or end live racing while keeping its gaming licence. Proposals to decouple appear regularly in states where racing has shrunk, and their outcome changes both the cost base of the operator and the income of the racing industry. The EGM entry explains the machines at the centre of the model.
Racino vs Land-Based Casino vs Integrated Resort
| Racino | Land-Based Casino |
|---|---|
| A racino holds its gaming rights because it is a licensed racetrack, and its licence usually requires live racing and a revenue share for the racing industry. | A commercial casino is licensed as a gaming venue in its own right, with no obligation to support another industry. |
Racino margins carry the cost of racing obligations, which affects valuations, lease terms and the case for decoupling.
| Racino | Integrated Resort |
|---|---|
| A racino adds machines to an existing racetrack, usually to serve a regional drive-in market and sustain racing. | An integrated resort is a purpose-built tourist destination combining a casino with hotels, conventions and entertainment under a licence tied to tourism investment. |
Both mix gaming with another attraction, but they answer different policy goals and attract very different capital.
The bottom line
A racino is a racetrack that earns its gaming licence by keeping racing alive. Its economics are a negotiated split between the operator, the state and the horsemen, and that split is always open to political revision.
Sources
- Economic Impacts - Ohio Lottery
- Video Lottery - New York State Gaming Commission
- VICI Properties Inc. Form 10-K for the year ended 31 December 2025 - US Securities and Exchange Commission (EDGAR)
Frequently asked questions
What is a racino?
A racino is a horse racing track that also offers casino-style gaming, usually slot machines or video lottery terminals and sometimes table games. The name combines racetrack and casino. Racino laws typically require a share of the gaming revenue to go to the racing industry, which is why many US states adopted the model to support live racing.
What is the difference between a racino and a casino?
A racino is licensed for gaming because it is a racetrack, and its licence usually comes with obligations to run live racing and share gaming revenue with horsemen. A casino is licensed as a gaming venue in its own right. Racinos may also operate machines as lottery products, such as video lottery terminals, rather than as casino slots.
How do racinos fund horse racing?
State law sets aside a portion of the gaming revenue for the racing industry, usually for purses, the prize money paid to owners, and for breeding programmes. The track keeps its own share and the state takes tax or lottery proceeds. The exact percentages vary by state and are often renegotiated as racing and gaming revenues change.
Where are racinos in the US?
Racinos operate in several states. In Ohio the lottery oversees video lottery terminals at seven racetracks, and in New York several of the state's video lottery gaming facilities are at racetracks such as Yonkers Raceway and Saratoga. Other states have their own racetrack gaming laws, so the details depend on each state's statutes.