Pennsylvania Bets on Itself with NASCAR Economics
Few investments yield a 16,800% return in just four days, but apparently Pennsylvania gets this outsized return every July.
No, it’s not bitcoin. Nor does it have anything to do with the state’s pension funds.
It’s NASCAR.
Every July, more than 100,000 fans descend on Pennsylvania’s Long Pond for NASCAR at the “Tricky Triangle.” The Pocono Raceway remains a family-run operation, first opened in 1968 fueled by a vibrant local racing scene and the advantage of being within a two-hour drive from major cities like New York City and Philadelphia.
Nestled in the scenic mountains of Northeastern Pennsylvania, the track’s rich legacy and the nostalgic atmosphere cherished by fans and racing teams is captured by the Raceway’s slogan, “Back to the Good Old Days.”
Pocono’s layout stands out as one of the most unique on any racing circuit. Unlike the typical four-turn tracks on NASCAR’s schedule, Pocono features three distinct turns. Hence, the “Tricky Triangle” moniker.
Pennsylvania’s Independent Fiscal Office confirmed what locals already knew: NASCAR weekend is an major payday. Last year, the races generated $32.7 million in direct spending and nearly $42 million in statewide economic impact. Nonresident spending contributed $24.7 million, while raceway itself spent $5.23 million as part of that. Lodging accounted for $7.81 million overall, with nonresidents accounting for 80% of the spending. Dining and restaurants generated $6.60 million, with two-thirds of spending coming from nonresidents. Retail and other spending totaled $13.03 million, with non-residents accounting for more than two-thirds of it.
As far as jobs, the event supported 290 full-time equivalent jobs with employee compensation reaching $13.17 million.
People from outside of Pennsylvania spend more. Nonresidents spend nearly 50% more than Pennsylvanians: $325 per person compared to $220. State and local governments collected $2.4 million in taxes, including $1.1 million in sales taxes. All of that came from a modest $250,000 state grant.
Put differently: taxpayers put up a quarter-million and got back a four-to-one return on sales tax revenue alone. Investment bankers dream of multiples like that, let alone when taking account of the multiple for the full economic impact of the event.
This is public spending at its smartest. Every gallon of gas, every hotel room, every meal served is a measurable dividend. The weekend also underscores a truth too often forgotten in political debate: economic development isn’t red or blue: it’s leverage.
The NASCAR model shows what’s possible when the state bets on its own potential.
The $42 million in economic activity supports small businesses, from family-owned diners to local contractors hired for event logistics. These dollars circulate, creating jobs and stabilizing communities.
In a state where rural and urban divides often stifle collaboration, events like this hint at what Pennsylvania could achieve with a cohesive economic vision.
Still, this is Pennsylvania, where even race cars drive through a partisan divide.
Look at the political map: blue bookends in Philadelphia and Pittsburgh framing a sea of red. Yet the Poconos complicate the picture.
Once a Republican stronghold, fast-growing Monroe County has become a swing “purple” county. Newcomers to the county are predominantly tax and shutdown refugees from the Northeastern U.S.
Monroe County voted for Obama twice, Clinton, Biden, and Trump.
Many bring their own political leanings, reshaping the region’s identity. This demographic shift mirrors broader trends: Pennsylvania’s population is diversifying, and its economic future depends on adapting to these changes.
The raceway crowd itself reflects this evolving dynamic.
Forty percent are Pennsylvanians, the rest from New Jersey (22%), New York (17%), Connecticut (5%), Canada (4%), and beyond.
About 12,000 fans camp at the track for four nights while another 35,500 stay in hotels, rentals, or with friends, injecting cash into the local economy.
The crowd reflects America’s middle: solidly working- and middle-class, about half with some college education, average household incomes around $72,000. Two-thirds own homes, and nearly a quarter identify as multicultural.
If $250,000 in taxpayer dollars can unlock $42 million in activity, Pennsylvania ought to be scouring every corner of the Commonwealth for the next Pocono.
The question isn’t whether it can work. It’s why we aren’t doing more of it?
