TORONTO — Ontario taxpayers will spend an extra $35 million a year for the next five years to support the province’s horse racing industry, bringing the total annual public contribution to as much as $155 million.The $175-million package, formalized as the fifth amendment to a long-term funding agreement with the Ontario Lottery and Gaming Corporation, was finalized in late June after months of internal industry negotiations. Roughly 80% of the new money is earmarked for the breeding sector and racing participants, including purses and breeders’ awards.Industry groups say the sector supports nearly 18,000 jobs, generates more than $1.9 billion in economic activity, and contributes approximately $330 million in provincial taxes. They cite inflation of about 25% since the original agreement was signed eight years ago as a key reason for the extra funding.Yet core performance numbers continue to decline. The amount wagered on live racing was down almost 12% year-over-year at this time last year, while tickets sold at tracks fell more than 16%. A 2019 auditor general report found wagering had already dropped 44% since 2009, with more than half the industry’s revenue coming from government sources..The deal was delayed for months because Woodbine Entertainment sought a larger share of the $35 million, creating tension with other tracks and breeders. The final agreement includes language that the industry is expected to take greater responsibility for becoming self-governing and sustainable — a signal the province does not want to provide another large infusion in five years.The additional spending comes as the Ford government faces pressure over fiscal restraint in other areas, including post-secondary education and health care. Critics note that public support for horse racing was originally framed as transitional help to allow the industry to stand on its own. Instead, the taxpayer contribution has grown while attendance and wagering have fallen, particularly since the arrival of legal online sports betting.
