Incentives primarily aimed at encouraging Thoroughbred owners to breed their horses in Kentucky have created a boon for the Quarter Horse industry, and many breeding operations are relocating to the state.

Kentucky last year started the breeders’ incentive fund by rerouting the tax revenue from stud fees to subsidies for Thoroughbreds and 10 other breeds, including Quarter Horses. The move was sparked by concerns from Thoroughbred breeders that mares would be moved to another state, perhaps one using casino revenues to try to attract them.

As intended, Thoroughbreds have received the vast majority of the payouts–$12.5 million out of $15 million allocated. But, the impact has been huge for the Quarter Horse industry too.

Next year, the total amount paid in Quarter Horse rewards figures to be $447,000–a 21% increase over this year