West Virginia's Losing Bet: Economic Study Finds Greyhound Racing a Net Drain on State Coffers

CHARLESTON, WV – February 25, 2026 – A landmark economic study released today concludes that greyhound racing in West Virginia provides “no net fiscal benefit” to the state, surviving almost entirely on millions of dollars in public subsidies that fail to generate a positive return for taxpayers. The analysis, conducted by esteemed economists at Ball State University's Center for Business and Economic Research (CBER), paints a stark picture of an industry that, according to the report, “does not pay for itself in either economic output or tax revenue.”

Commissioned by the national greyhound protection group GREY2K USA, the study is the first major economic review of the industry in West Virginia in over a decade. It argues that the state’s financial support, estimated to be between $15 million and $22 million annually, merely serves to “keep the industry afloat rather than generate a net positive return for the state.” This finding challenges long-held justifications for the practice and injects powerful new data into a contentious, long-running debate.

“This is the first economic study of dog racing in West Virginia in more than a decade, and the results confirm what many have long said – that greyhound racing doesn't pay for itself,” said GREY2K USA President and General Counsel Christine Dorchak in a statement accompanying the release. “At the end of the day, the state's existing greyhound subsidy scheme only enriches a handful of breeders at the expense of other vital state programs.”

The Numbers Don't Add Up

The report, authored by CBER Director Michael J. Hicks, PhD, and Director of Research Dagney Faulk, PhD, systematically dismantles the argument for the industry's economic viability. A central finding is that the entire economic effect of greyhound racing in the Mountain State stems from a “transfer of state tax dollars, from other forms of gaming, to the operators of greyhound racing.”

These subsidies are primarily sourced from a 1.5% levy on video lottery revenue at the state's casinos. The funds are directed into purse accounts and the West Virginia Greyhound Breeding Development Fund, artificially inflating prize money. Without this financial pipeline, historical analyses suggest the industry would collapse. A 2015 report by the Spectrum Gaming Group, for instance, concluded that greyhound racing could not exist without subsidies, as consumer interest had waned dramatically over decades.

Furthermore, the new Ball State study highlights the issue of “economic leakage.” It found that a “substantial share” of the prize money subsidized by West Virginia taxpayers is paid to greyhound owners who live outside the state. Historical data supports this, with one analysis from 2013 showing that 63% of all purses, totaling over $11 million, were awarded to out-of-state owners. At Wheeling Island that year, residents of Kansas won more prize money than residents of West Virginia.

The study also asserts that the industry provides “limited economic benefit, primarily sustaining a narrow set of low-wage jobs without producing long-term employment, income, or GDP gains.” This directly counters claims from industry supporters about significant job creation.

The Last Lap for a Declining Industry

West Virginia's position is unique and increasingly isolated. It is the last state in the nation with active commercial greyhound racing, operating at two tracks: Mardi Gras Casino & Resort in Cross Lanes and Wheeling Island Hotel-Casino-Racetrack. The sport is illegal in 44 other states, with national trends showing a steep decline in public interest and wagering.

Data from West Virginia itself reflects this trend, with gambling on live dog racing falling by 57% between 2010 and 2023. The dwindling interest on the ground is mirrored by action in Washington. The Greyhound Protection Act, a piece of bipartisan legislation seeking to phase out the practice nationwide, was reintroduced in the U.S. House of Representatives in 2023, signaling a broad consensus against the sport.

“The rest of the nation has sent a clear message to West Virginia that it has moved on from the cruel, inhumane and outdated practice of dog racing,” Dorchak stated. “This latest economic analysis confirms that West Virginia experiences little economic benefit for the nearly $20 million in tax revenue it spends annually to continue propping up a dying industry.”

Data Versus Tradition: A Familiar Debate Reignited

The release of the CBER study is set to reignite a fierce political battle in Charleston. The debate over the future of greyhound racing and its associated subsidies is not new. In 2017, the state legislature passed a bipartisan bill to eliminate the Greyhound Breeding Development Fund, but the measure was vetoed by Governor Jim Justice, who cited concerns about job losses and the potential for the state's two casino tracks to become less competitive.

Now, armed with fresh, rigorous data, opponents of the subsidies have a powerful new tool. The study provides fiscal conservatives and animal welfare advocates with a common cause, framing the issue not just as one of animal cruelty but of profound fiscal irresponsibility. The findings suggest that the millions of dollars funneled into the racing industry could be reallocated to address more pressing state needs, such as infrastructure, education, or healthcare, without causing a significant negative impact on the state's overall employment.

As lawmakers in Charleston digest the report's findings, they will be forced to weigh the stark economic data against the inertia of tradition and the lobbying efforts of a small but entrenched industry. The study concludes that the continuation of greyhound racing is “unlikely to produce broad-based or sustainable economic gains,” forcing a critical question upon the state: Is propping up the nation's last two dog tracks a sound investment, or a losing bet funded by the public?