By the early 1990’s, horse and Greyhound race tracks were in need of serious rejuvenation. Revenues had declined to the point that many tracks were on the verge of bankruptcy. In 1994, voters in Iowa authorized the installation of reel-spinning slot machines in the state’s horse and Greyhound tracks. The brand new and nearly insolvent Prairie Meadows racetrack installed 1,100 slot machines in their clubhouse and opened for business in 1995. The slots proved to be an instant money-maker for the track. Thus was the concept of racinos introduced to the country.

A combination of the terms “racetrack” and “casino”, racinos are, today, keeping horseracing - often described as the Sport of Kings - and Greyhound racing viable gambling and entertainment venues. Race tracks such as Delaware Park and West Virginia’s Mountaineer Park, once at the edge of insolvency, are currently among the top grossing racetracks in the country. Legendary tracks like Pimlico and Saratoga, without alternative gaming venues, are quite often, running into financial difficulties.

According to a 2003 article in USA Today, revenues from racinos, many of which bring in millions of dollars per year, are split four ways: (1) payments of operating costs and payouts to winners, (2) state taxes, (3) prize money for horse owners and jockeys, and (4) profits for the racinos.

A racetrack is a facility that is purpose built for the racing of animals, automobiles, motorcycles and athletes. It is likely called a “race course” in other countries. Horse racing dates back to ancient times.

Casinos are, in today’s vernacular, buildings or complexes dedicated to various types of gaming. Slot machines and table games like blackjack, poker and roulette are the most common gaming activities in the modern casino. The term “casino” originated in Italy where small villas and pavilions were built for the pleasure of the owners. Casinos are now recognized worldwide, especially the gaming Mecca’s of Monte Carlo and Las Vegas.

The original gaming option offered at horse and Greyhound racetracks was the sale of state lottery tickets. Outlets for state lottery sales were so numerous, however, that the lotteries were not bringing significant numbers of patrons to the fiscally ailing racetracks. With the addition of slot machines and table games, racinos are inexorably becoming an integral and lucrative part of horse and Greyhound racing venues nationwide.