Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR López
LAST UPDATED
ORIGINAL DATE 3/3/2025
SHORT TITLE
Horse Racetrack Live Race Day
Requirements
BILL
NUMBER Senate Bill 513
ANALYST Montano
REVENUE*
(dollars in thousands)
Type FY25 FY26 FY27 FY28 FY29
Recurring or
Nonrecurring
Fund
Affected
Fee $0
Indeterminate
but minimal
gain
Indeterminate
but minimal
gain
Indeterminate
but minimal
gain
Indeterminate
but minimal
gain
Recurring
Equine Test
Fund
Parentheses ( ) indicate revenue decreases.
*Amounts reflect most recent analysis of this legislation.
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
SRC No fiscal impact $1,900.0 $1,900.0 $3,800.0 Recurring General Fund
SRC No fiscal impact
Indeterminate
but minimal
Indeterminate
but minimal
Indeterminate
but minimal
Recurring
Jockey and
Exercise rider
fund
Total No fiscal impact
At least
$1,900.0
At least
$1,900.0
At least
$3,800.0
Recurring
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Relates to House Bill 367
Sources of Information
LFC Files
Agency Analysis Received From
State Racing Commission (SRC) Gaming Control Board (GCB)
SUMMARY
Synopsis of Senate Bill 513
Senate Bill 513 amends provisions of the Horse Racing Act in New Mexico, specifically altering
the requirements for live race days that racetracks must meet to maintain a gaming operator’s
license. The bill establishes a new minimum length for race meets and mandates that live racing
must take place continuously from the first to the last day of an authorized race meet.
Senate Bill 513 – Page 2
Under the proposed changes, a race meet must last at least 15 weeks, with the required number
of live race days depending on the racetrack’s financial standing. Racetrack licensees that paid
gaming taxes of $8 million or less in the prior fiscal year must conduct at least three live race
days per week, with at least 10 races per day. For racetrack licensees that paid more than $8
million in gaming taxes in the previous fiscal year, the requirement increases to four live race
days per week, with at least nine races per day. Additionally, the bill prevents more than three
consecutive days from passing between the end of one race meet and the beginning of another at
a different racetrack.
These changes will take effect on July 1, 2025.
FISCAL IMPLICATIONS
The State Racing Commission (SRC) did not project any revenue loss or gain from SB513;
however, increasing the total number of live race days should generate a gain in revenue. More
live race days may lead to an increased number of bets, but it may also increase the rate of
betting fatigue in potential betters. SB513 should generate an indeterminate but minimal gain for
SRC.
Three racetracks would be required to race four times a week for 15 weeks, and two racetracks
would be required to race three times a week. This would increase the total number of race days
from 187 to 270, an 83-day difference. SRC highlights that the cost for every additional race day
is $8,100, which means the enactment of SB513 would increase operating costs for SRC by
$672.3 thousand. This daily cost of $8,100 is used to pay three stewards, two investigators, two
veterinarians, and two licensing clerks. SRC also explains that, because the new race meets are
15 weeks long, the agency would most likely need to hire additional stewards, investigators,
veterinarians, and licensing clerks. Three additional stewards would cost $311.5 thousand or
$103.8 thousand each, two additional investigators would cost $160 thousand, or $80 thousand
each, two additional veterinarians would cost $585.7 thousand, or $292.9 thousand each, and two
racing/licensing clerks for $144.0 thousand, or $72.0 thousand each. In total, SRC would need an
additional $1.2 million for additional FTE. The enactment of SB513 in total would cost SRC
$1.9 million per year.
SRC notes:
Increases in the number of live race days will result in increased HISA fees, HISA being
the federal regulatory agency overseeing the thoroughbred horse racing industry.
Increased race days will also result in increases in the jockey and exercise rider insurance
premiums. The fund for such expenditures is capped. If funds are insufficient to cover
those costs, the horse racetracks may have to institute starter fees for every race run
which must be paid by commission licensees such as trainers and owners.
SIGNIFICANT ISSUES
SRC notes:
Regarding the modification to the definition of "race meet" to require the conducting of
live racing at the track: each horse racetrack has associated with it a slot-only casino.
Under NMSA Section 60-2E-47(E)(l)(2), those casinos are required to contribute 20
percent of their net take to purses paid in horse races and one and two-tenths percent of Senate Bill 513 – Page 3
net take for offsetting jockey and exercise rider insurance premiums and for compliance
with federal and state laws pertaining to horse racing. That 20 percent net takes
approximately $60-65 million annually for purse money, approximately 95 percent of the
total amount of purse money paid annually. Current law permits those casinos to be
operational when either live racing is taking place at the racetrack or when the track is
simulcasting live racing from other tracks in New Mexico, nationwide or internationally.
If a "race meet" is redefined to require live racing at the track, that will result in
drastically limiting the time in which the casinos can be operational. That will result in a
disastrous reduction in the amount of purse money offered in live races in New Mexico
by tens of millions of dollars.
Regarding requiring a "race meet" be a minimum of 15 weeks: Currently, the Racing
Commission effectively sets the live race days for the state's five race meets such that
there is as little overlap between live race meets as possible. The number of live race days
and the staggering of live race meets is the commission's recognition of the decades long
decline in racehorse breeding both in New Mexico and nationwide. If all five of the
state's horse racetracks are required to have live racing for a minimum of 15 weeks, that
will mean 75 weeks of live racing a year consisting of 52 weeks. Even if the Downs of
Albuquerque race meet and the State Fair race meet are combined and are required to be
15 weeks long, that will still mean 60 weeks of live racing in a calendar year of 52 weeks.
Regardless, the bill will result in significant overlapping of race meets. Given the decades
long decline in racehorse breeding, the results will be disastrous. Specifically, there will
in increases in racehorse deaths and injuries given the limited number of racehorses will
be racing and training more. Overworked horses will contribute to increased accidents in
training and racing leading to increases in injuries and deaths of jockeys and exercise
riders. Increased live racing days will result in significant increases to jockey and
exercise riders’ insurance premiums. Increased live race days resulting in overlapping of
race meets will require significant new staffing requirements to the Racing Commission
to the tune of $650 thousand to $1+ million annually. Given the decades long decline in
racehorse breeding, there will be a sharp increase in the inability of tracks to fill every
race card for every horse race. That could translate to a small number of horses
competing in races and the potential only one or two trainers may have every single horse
they are training entered in a race, creating a monopoly of sorts. Respectfully, for the
reasons detailed herein this bill is unnecessary.
PERFORMANCE IMPLICATIONS
The Gaming Control Board notes:
Based on FY 2024 tax payments, three racetracks fall over the $8 million mark and two
race tracks fall below the $8 million mark. This impacts, via this bill, the number of live
days in a meet and the number of races in a day.
SRC notes:
If enacted, unless significant increases are made to the budget of the Racing Commission,
effective regulatory oversight will suffer. As noted previously, the health, safety, welfare
and lives of jockeys, exercise riders and the equine athlete will all be seriously
endangered.
Senate Bill 513 – Page 4
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
SB513 nearly duplicates House Bill 367. Senate Bill 513 imposes the same live race day
restrictions as HB367, but SB513 does not include a cap on gaming machines per racetrack
license and does not regulate operating hours. SB513 also does not include a variance provision,
or a clause that allows the racetrack to cancel a live race day due to weather issues, labor strikes
or other uncontrollable circumstances.
NM/rl/hg