Washington Horse Racing Commission warns fund balance could fall below OFM minimum, seeks short-term bridge

Chairman Doug Moore and Executive Secretary Amanda Benton told the Washington Horse Racing Commission on Jan. 9 that the agency's revenue projections and an unexpected increase in regulatory assessment costs have left its fund balance at risk of dropping below the Office of Financial Management's (OFM) $400,000 minimum.

Amanda Benton said updated wagering forecasts from Emerald Downs and recent bookkeeping discoveries show the commission's projected fund balance at the end of the biennium is now $250,796. "Based on the projections, we are scheduled to drop below that $400,000 amount in September, and we will not go back above it," Benton said during the meeting.

Moore described the shortfall as serious and said the commission has already briefed the governor's policy adviser and fiscal analysts in both legislative chambers. He said the commission discovered the errors only in November and has since met with Kenneth Martin (governor's policy adviser), OFM staff and fiscal analysts from the House and Senate to explain the circumstances.

"Without some kind of assistance, the horse racing commission will be forced to shut down thereby shutting down the entire industry," Moore said, characterizing the potential operational impact if the commission cannot bridge the gap.

Senator Joe Kaufman, who joined the meeting, cautioned that a $600,000 request would be difficult given statewide budget constraints. "600,000, that's a lot of money," Kaufman said, adding that Senate priorities and broader budget deficits make such an ask challenging.

Commission staff said the $600,000 figure represents a short-term bridge to carry salaries, benefits and essential operating costs through the current biennium until the agency can formally submit a legislative decision packet in the next session. Benton said the fiscal analysts told commissioners that any formal budget request or adjustment would need to be brought forward by a legislator or legislative committee to trigger work by OFM and the legislature's fiscal staff.

Industry representatives at the meeting blamed federal assessment changes tied to the Horseracing Integrity and Safety Act (HISA) for larger-than-anticipated regulatory costs. A representative for Emerald Downs said changes to the assessment formula treating low- and high-purse races similarly have "really hurt" smaller operators and contributed to the revenue shortfall.

Benton provided additional figures to commissioners: total in-state wagers for 2025 were $43,296,115.80, down about 8% from 2024, and the commission's operating account distributions for 2025 were $696,289.21, down roughly $149,000 from the prior year. She also said Advanced Deposit Wagering (ADW) handle has fluctuated and that timing of source-market fee deposits has complicated revenue projections.

Commissioners and staff said they will pursue outreach to ex officio legislators and industry partners to seek a legislative sponsor and explore short-term funding options, while continuing work on a decision packet for the upcoming session. No formal appropriation or legislative action was taken at the meeting.

The commission expects to continue discussing funding options ahead of the next meeting on Feb. 13.