Greyhound Racing in West Virginia | GREY2K USA Worldwide Download and read the full study here!
Executive Summary Excerpt from above report. Please read the report. This must end!
This study examines the economic and fiscal effects of greyhound racing in West Virginia, the last U.S. state to maintain live greyhound tracks. Historically, the industry grew rapidly during the 20th century, peaking mid-century before a long-term decline due to animal welfare concerns, changing public tastes, and competition from casinos and lotteries. Unlike other states,West Virginia sustains greyhound racing through statutory subsidies drawn from casino gaming revenues, primarily via transfers from video lottery and racino revenues into purse accounts and the Greyhound Breeding Development Fund. These subsidies, totaling roughly $15 million to $22 million annually, account for 95% to 97% of total purse payments, highlighting that the industry’s continued operation is almost entirely dependent on public support rather than market demand.
This study uses both historical economic literature and modern empirical methods, including difference-in-differences (DiD) and event study approaches, to estimate the local economic impact of greyhound racing. Results show modest, transient employment gains of approximately 0.38% in counties hosting racing, peaking two to three years post-adoption before dissipating. Pre-treatment trend analysis indicates that these counties were already on stronger economic trajectories, suggesting the measured effects are temporary bursts rather than sustainable growth. Input-output models confirm that the sector’s direct economic impact is roughly $17.5 million, barely exceeding the subsidies provided, with minimal tax revenue generated relative to public spending.
Overall, the evidence indicates that greyhound racing in West Virginia provides limited economic benefit, primarily sustaining a narrow set of low-wage jobs without producing long-term employment, income, or GDP gains. Fiscal analysis reinforces that public subsidies are essential to its survival, meaning the industry functions more as a legacy-supported activity than a viable economic development strategy. Policymakers are thus advised to weigh the opportunity costs of continued support against alternative uses of public funds, as the industry’s broader economic contribution remains minimal and increasingly tenuous.