Maryland formally announced its intent to match an $85 million bid to purchase the rights to the Preakness Stakes.

In April, Churchill Downs Inc. announced an agreement to purchase the intellectual property, including all trademarks and associated rights of the Preakness and Black-Eyed Susan Stakes, from 1/ST Maryland, an affiliate of 1/ST Racing for $85 million. The deal was expected to be finalized after this year’s Preakness. On Thursday, the governor’s office released a statement announcing the state’s intent to exercise its right of first refusal to match Churchill Downs’ offer.

“By exercising this right, the state of Maryland will secure ownership of these iconic racing assets, ensuring that Maryland remains in firm control of the state’s multibillion-dollar horseracing industry for decades,” the governor’s statement said. By owning the intellectual property, the state said it will no longer be subject to a disadvantageous fee structure of the existing exclusive licensing agreement, which would have escalated costs for the state over time.

Instead, the governor’s office said the state will operate under a model that prioritizes industry health and community benefit, consistent with the nonprofit model adopted by the Maryland Jockey Club. The governor’s office said the acquisition will be funded through a tax-exempt revenue bond issuance by the Maryland Economic Development Corp. and not general fund tax dollars.

The governor said this decision would complete the state’s control over the essential assets of the Preakness, as the state already holds ownership of Pimlico Race Course, a purchase of Laurel Park Race Course is pending, and the state already oversees the management of the Preakness.

Gov. Wes Moore said in a statement: “The Preakness Stakes is more than just a race; it is a cornerstone of Maryland’s history, culture, and economy. Our administration has made historic investments to revitalize Pimlico Race Course and secure the long-term sustainability of the Maryland horseracing industry. This decision secures a vital asset for our state, allows Maryland to shape its horseracing destiny, and by leveraging the Preakness’s iconic status and partnering with industry experts to enhance the fan experience, preserve Maryland’s position as a key power player in the Triple Crown for generations to come.”

Bill Knauf, president and general manager of The Maryland Jockey Club, said in a statement: “The Maryland Jockey Club is ready to further elevate the Preakness into a world-class, bucket-list event for Marylanders and racing fans worldwide. Additionally, we will work with our strategic partners on exciting new events and entertainment options leading up to Preakness weekend. We also very much look forward to collaborating with our Triple Crown partners.”

David Richardson, executive director of the Maryland Thoroughbred Horsemen’s Association, said in a statement: “By bringing the Preakness under Maryland ownership, (the governor) has helped ensure that the benefits, growth and legacy of this world-class event remain here for the people of Maryland.”

Timothy L. Keefe, vice president of the Maryland Thoroughbred Horsemen’s Association and a board member of the Maryland Jockey Club, said in a statement: “This decision protects one of Maryland’s most valuable assets while creating long-term stability for our racing and breeding industries. We appreciate Gov. Moore’s willingness to take a thoughtful, forward-looking approach that strengthens Maryland racing and safeguards the future of the Preakness for decades to come.”