In late 2022, Michigan mistakenly paid $1.7 million to two horse racing groups—the Michigan Harness Horsemen’s Association and Northville Downs—due to a 2019 law provision that diverted funds exceeding an $8 million cap from the Agriculture Equine Industry Development Fund. Although the state initially said it would monitor the use of these funds to ensure they supported horse racing activities, the Michigan Department of Agriculture and Rural Development later admitted it never reviewed how the money was spent and had no legal obligation to do so. Both organizations failed to provide documentation on their use of the funds, and the Michigan Harness Horsemen’s Association’s tax filings did not reflect the state payment.
The $8 million cap was originally intended to prevent excessive payouts but became problematic after increased betting revenues pushed the fund above this threshold. Efforts by State Sen. Dan Lauwers to remove the cap and prevent future overpayments have stalled, leaving the law unchanged. Meanwhile, Northville Downs, which received nearly $888,000, closed in early 2024 after failed attempts to relocate and legal disputes with Plymouth Township. The situation highlights legislative gaps in oversight and accountability for state funds allocated to private horse racing entities.
