In the fourth part of our new series delving into key questions about horse racing's future, Daniel Ross engages in a conversation with longtime track official Corey Johnsen. The recent Breeders’ Cup witnessed remarkable handle figures, reaching the third highest in its history. The handle for this year's Kentucky Derby set new records, and Saratoga's summer meet concluded with notable all-source wagering increases compared to the previous year. But is this all good news? Not so fast. Handle figures, it turns out, are a less accurate barometer of fiscal health than revenues – that is, the portion of the wagering pie that returns to the industry. Beyond a few success stories, this particular slice continues to shrink, having a ripple effect throughout the sport. Here, our series continues with Corey Johnsen.

Corey Johnsen's Golden Summer and Track Successes

As president of CJ Thoroughbreds, Corey Johnsen (left) has experienced a remarkable summer. His team's Hang The Moon achieved great success, but it's his leadership at several tracks that the TRC is particularly interested in. Johnsen served as president of Lone Star Park when it hosted the Breeders’ Cup in 2004. In 2007, he purchased the struggling Kentucky Downs and transformed it into a purse-rich powerhouse. Most recently, he has been a driving force behind the revitalization of the Maryland racing industry. The state legislature recently approved the transfer of ownership of Pimlico Race Course from 1/ST Racing and Gaming to a quasi-state entity and the establishment of a year-round training facility for Maryland's horsemen and women. One thing is clear – the clouds around Corey Johnsen always seem to have silver linings.He views the uniform program provided by the Horseracing Integrity and Safety Act (HISA) as a major advantage for racing's social license to operate. "We've needed a nationally coordinated program to ensure the integrity and safety of our sport," he said, highlighting how the majority of tracks recognize its benefits.

Signs of Economic Health Across the Country

Johnsen also sees signs of economic health everywhere. "Maryland has really opened my eyes to what is happening in racing," he said. "We are human beings, and sometimes we only notice the negative things, while there's a lot of positive things that are going on. When I look to the future of Thoroughbred racing, I'm very enthused. But I needed to be injected into the Maryland situation where I know by 2027, Maryland racing is going to be great again."What gives him such confidence? "When you look at other professional sports, would they be as successful without all the new stadiums and arenas?" Johnsen points to the $455 million NY-state injection into Belmont Park and Oaklawn Park, which has spent significant money to enhance its gaming and racing facilities. New Jersey has also recently extended its $20m annual purse enhancement for horse racing through to 2029. "The tracks in Kentucky have spent a lot of money not only improving the racing situation but also the historical horseracing situation," he added. "A significant amount of HHR [Historic Horse Racing] revenues go to purses and KBIF [Kentucky Thoroughbred Breeders’ Incentive Fund] awards. We're seeing that improving the quality of racing."

Maryland as a Useful Blueprint

Johnsen believes Maryland's future could serve as a useful blueprint for other jurisdictions. Through an industry-led non-profit structure of racetrack ownership and management similar to the UK's Jockey Club, he thinks we should look at the UK model and take more control of our tracks. Unlike others interviewed for this series who have expressed concerns about the precarious position of smaller tracks, Johnsen points out that the economic outlook isn't uniform. "Racing was shut down in 2010 in Wyoming," he said. "Last year, the state brought racing back, and now this year, they're going to pay out approximately $15m-plus in purses and breeders’ awards. Now that historical horse racing has taken off in Wyoming, I think that number could be north of $20m in the next couple of years."

Economic Headwinds and the Need for Skill

However, certain states, like California, are solely reliant on revenues generated through betting turnover and face significant economic challenges. Again, Johnsen looks for the positives. "I do know there's a ton of money just from racing in California," he suggested. "States go through stages of ebb and flow in their development. In 2010, if you objectively looked at racing in Kentucky, you'd have said it was in huge trouble. But they were able to go to the legislature and convince them of the industry's importance and get a change in their business formula."To sell a compelling message to lawmakers requires skill, coordination, and a bit of political savvy. Certain jurisdictions have struggled in recent years due to a lack of effective leaders. "It's not perfect everywhere," Johnsen agreed. "You don't always have the perfect mix of people."That said, "one of the assets we have in Thoroughbred racing is that we have a lot of really accomplished, smart people in all aspects of our sport, from track ownership and management to horse owners," Johnsen said. "I mean, some of the most brilliant businessmen in America own horses. When they get involved, they can be extremely effective."