Maryland Secures Full Intellectual Property Rights to Preakness Stakes in $85 Million Acquisition

ANNAPOLIS, MD – Governor Wes Moore announced today that the State of Maryland has finalized its acquisition of the intellectual property (IP) rights to the Preakness Stakes and Black Eyed Susan from 1/ST Racing. On June 18, Governor Moore exercised the State’s right of first refusal to match an $85 million offer made by Churchill Downs, Inc. to purchase these IP rights, thereby securing full ownership for Maryland.

“The Preakness Stakes is a cornerstone of Maryland's history, culture, and economy,” Governor Moore stated. “Our administration is dedicated to preserving our state as a key power player in the Triple Crown for generations to come. With this final acquisition, we are not only leveraging the Preakness’s iconic status and uplifting our horse racing industry, but also revitalizing the communities that directly benefit from the economic opportunities of the race.”

The Maryland Economic Development Corporation (MEDCO) facilitated the acquisition by issuing notes to finance the transaction. Importantly, no General Fund tax dollars were used to acquire the IP rights.

“MEDCO is proud to have had the opportunity to conceive and execute a financial transaction that secures ownership of the Preakness and Black-eyed Susan IP and cements the success of horse racing in Maryland for generations to come,” said Tom Sadowski, Chief Executive Officer of MEDCO.

By securing these valuable IP rights, Maryland ensures that the Preakness Stakes will remain anchored in Baltimore and the state for the foreseeable future. This acquisition places the State in firm control of Maryland’s multi-billion dollar equine industry. The Pimlico Race Course and Laurel Park remain under the Maryland Stadium Authority’s control, while day-to-day horseracing operations are overseen by The Maryland Jockey Club, a nonprofit organization established by state law.

Bill Knauf, President and General Manager of The Maryland Jockey Club, expressed gratitude for the State’s leadership: “We thank Governor Moore for his leadership on this acquisition and look forward to executing the State’s vision for a world-class Preakness and Black-Eyed Susan event next year at the new Pimlico. With all assets now residing with the State, we will work closely with the Maryland, Baltimore, and Park Heights business communities to showcase the Preakness on the national stage.”

This acquisition strategically positions Maryland to maintain the Preakness Stakes as a world-class event managed in the best interests of the racing community and taxpayers. Ownership of the IP rights eliminates the previous exclusive licensing agreement’s escalating fee structure, which would have increased costs for the State over time. Instead, Maryland will operate under a model prioritizing industry health and community benefit, consistent with the nonprofit framework of the Maryland Jockey Club.

The State remains committed to growing the Preakness Stakes’ prominence within the Triple Crown series. The Maryland Jockey Club has secured partnerships with leading industry entities, including Oak View Group for sponsorship development and KO Productions for event production. While Maryland now owns the IP rights, it remains open to collaboration with Churchill Downs and other industry partners to benefit the broader Triple Crown and horseracing sport.

In legislative developments, the Maryland General Assembly authorized the Maryland Stadium Authority in 2024 to issue $400 million in bonds for redevelopment of Pimlico Race Course in Baltimore. The new facility is projected to support over 500 jobs and expand racing days from approximately 15 annually to more than 100, establishing Pimlico as the permanent home of Maryland Thoroughbred racing.

As the centerpiece of Maryland’s Thoroughbred racing industry—which supports over 28,000 jobs and generates roughly $3 billion in economic impact—the upgraded Pimlico Race Course will serve as a year-round economic hub for Park Heights, surrounding communities, and Baltimore City.