Published on: June 18, 2026, at 06:06h.
Updated on: June 18, 2026, at 06:06h.
- Maryland is asserting its option to acquire the intellectual property rights for the Preakness Stakes.
- Churchill Downs previously proposed a bid of $85 million for those rights.
- The state simply matched the gaming firm’s proposal.
Maryland is utilizing its authority to acquire the intellectual property (IP) associated with the Preakness Stakes, which may threaten an $85 million offer made earlier by Churchill Downs (NASDAQ: CHDN) in April.
According to Maryland business regulations, the state holds the right of first refusal to purchase the IP of both the Preakness Stakes and the Black-Eyed Susan Stakes—an event for fillies—from 1/ST Maryland LLC. Under this law, the state only needs to match existing offers, which it has successfully done.
“The Preakness Stakes is not only a race; it represents an integral part of Maryland’s history, culture, and economy,” stated Gov. Wes Moore (D) in a press release. “This decision safeguards an essential asset for our state, empowers Maryland to shape its future in horse racing, and by utilizing the Preakness’s iconic reputation, we can enhance the experience for fans and maintain Maryland’s status as a prominent player in the Triple Crown for years to come.”
The second leg of the Triple Crown is hosted at Pimlico Race Course in Baltimore, usually taking place in May, two weeks following the Kentucky Derby.
Churchill Downs’ Ambiguous Reaction
Churchill Downs, which already boasts the Derby as part of its esteemed portfolio, seemed poised to secure ownership of the Preakness IP following its announcement of the April bid, anticipating a swift completion of the deal after the race.
In a quote, Churchill Downs CEO Bill Carstanjen remarked that he understood Maryland’s desire to acquire the Preakness IP as a “state-owned asset,” suggesting that the company is preparing for a competitive bid war given their current limitations.
“We are dedicated to collaborating with the Governor, other elected officials, and stakeholders in Maryland’s horse racing community to fully unlock the potential of a revamped Pimlico and the Preakness Stakes within the Triple Crown and the larger sports and entertainment arena,” Carstanjen disclosed in a statement.
The state already owns Pimlico and is working on acquiring Laurel Park Race Course, increasing its influence over the racing sector in the area.
Maryland Taxpayers Not Responsible for Costs
Maryland residents will not bear the financial burden for the state’s acquisition of the Preakness, as the office of Gov. Moore indicates that no general fund capital will be utilized for this purchase. Instead, the acquisition will be financed through the issuance of a tax-exempt revenue bond.
The repayment of this bond will be managed through “future revenues generated by the Preakness Stakes and Black-Eyed Susan, which include income from wagering, ticket sales, and sponsorships,” according to the governor’s office. The state is making investments to improve infrastructure at Pimlico.
“In 2024, the Maryland General Assembly approved the Maryland Stadium Authority to generate $400 million in bonds to redevelop the Pimlico Race Course in Baltimore,” the governor’s office stated. “The new facility is projected to create over 500 jobs and transition from hosting about 15 racing events per year to becoming the permanent home for Maryland Thoroughbred racing, with over 100 racing days annually.”