Despite the casino shutdown, the New Mexico Gaming Control Board preserved a key source of purse funding by allowing Ruidoso's allocated gaming machine licenses to remain in operation at Sunland Park and Zia Park.

© Ruidoso Downs

RUIDOSO, NM—JULY 25, 2026—Although the closure of casino operations at Ruidoso Downs initially raised concerns about a major reduction in New Mexico's racing purse fund, state officials say the impact will be significantly less severe after the New Mexico Gaming Control Board voted to preserve a key source of gaming revenue.

The board allowed Ruidoso Downs to retain its gaming license despite the casino's closure, enabling 300 allocated slot machine licenses to remain in operation at Sunland Park and Zia Park. Those machines—150 at each track—represent approximately 20 percent of each casino's gaming floor and generate an important portion of the state's purse funding.

The New Mexico Department of Transportation recommended closing the Ruidoso casino after severe flood damage compromised the property's main entrance, creating safety concerns for employees and patrons. The closure comes after two years of destructive wildfires and flooding that also forced Ruidoso Downs to relocate its entire 2026 race meet to Albuquerque.

Under New Mexico law, Ruidoso's ability to allocate gaming machine licenses to other racetracks depends on maintaining its gaming license. Had the license been revoked, the 300 allocated machines at Sunland Park and Zia Park would have been removed from service.

Instead, the Gaming Control Board cited the extraordinary circumstances surrounding the natural disasters and approved allowing the machines to continue operating.

Because New Mexico law requires racetrack casinos to dedicate 20 percent of their net slot machine revenue to purse accounts, keeping those machines in operation preserves a substantial source of funding for horsemen across the state.

"The action by the NMGCB gives us meaningful stabilization of the purse fund," New Mexico Racing Commission Executive Director Izzy Trejo said.

Trejo noted that while the purse fund has received an important boost, the long-term challenge now centers on the future of Ruidoso Downs' racing calendar.

"Race dates will be a topic that will take some time to figure out," Trejo said. "We will need to put some thought into what a race dates model without Ruidoso's 47 to 49 days of racing will look like, if their race meet is not run at one of New Mexico's other four racing facilities."

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