ANNAPOLIS, Md. — A state audit has found that Maryland’s Division of Racing failed to conduct required background checks on thousands of racetrack workers for years, raising concerns about oversight of individuals licensed to work in the state’s horse racing industry.
The audit, released in April 2026 by the Maryland Office of Legislative Audits, reviewed operations within the Maryland Department of Labor’s Division of Racing from September 1, 2021, through January 15, 2026.
Auditors determined that the division had not performed criminal background checks on licensees since 2018, despite state regulations requiring both state and national checks for all individuals working at Maryland racetracks.
The Division of Racing is responsible for licensing thousands of workers across the state’s racetracks, including jockeys, trainers, and concession workers. In fiscal year 2025 alone, the agency issued 5,746 licenses.
In testing a sample of 25 licenses issued between fiscal years 2023 and 2026, auditors identified individuals with prior criminal convictions that went undetected due to the lack of background checks. Those included a licensee convicted of battery and malicious destruction of property and another convicted of possession with intent to distribute illegal drugs.
Auditors also found the division failed to take action against license holders who had been suspended in other jurisdictions. While the agency reviewed national racing databases, it did not document those reviews or any enforcement decisions, as required by state regulations.
In one case cited in the audit, a licensee who was suspended three times in other jurisdictions in 2025 maintained an active license in Maryland, with no documented review or action by the state.
The audit concluded that these failures prevented the agency from identifying and taking corrective action against individuals with criminal histories or disciplinary records, representing a significant breakdown in regulatory oversight.
The Division of Racing operates under the Maryland Racing Commission and is responsible for regulating horse racing and pari-mutuel wagering, as well as distributing certain video lottery funds. The agency reported approximately $202 million in expenditures in fiscal year 2025, most of which supported grants and racing-related funding.
State auditors recommended that the division immediately resume required background checks and strengthen procedures to identify and act on disciplinary actions from other jurisdictions.
The Maryland Department of Labor agreed with the findings and said corrective actions have already begun. Officials reported that a new fingerprinting machine has been installed, staff training has been completed, and background checks resumed on March 14, 2026.
The division also said it has begun improving recordkeeping by documenting suspensions and disciplinary actions for licensees and reviewing policies related to tracking out-of-state violations.
Auditors said they will review the agency’s corrective actions to ensure compliance moving forward.
Read the full Maryland Department of Labor Division of Racing audit report below:
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