In 1908, the administration of
Governor Charles Evans Hughes signed into law the
Hart–Agnew bill that effectively banned all racetrack
betting in the
state of New York. The legislation allowed for
fines and up to a year in prison which was strictly enforced. Compounding matters for the Sheepshead Bay track was intense competition. In a summary of 1909 racing, the
Daily Racing Form reported that "Sheepshead Bay, which for years led the country in daily average distribution, yielded first place in 1909 to Belmont Park, which
August Belmont and his associates are ambitious to make the "turf headquarters of America"." A 1910 amendment to the Hart–Agnew legislation added further restrictions that made the owners and directors of a racetrack
personally liable for any betting done on their premises, with or without their consent. Such an onerous liability was intolerable and meant that by 1911 all racetracks in the state ceased operations. Although a February 21, 1913 ruling by the
New York Supreme Court, Appellate Division paved the way for racing to resume that year, by then it was too late for horse racing at the Sheepshead Bay Race Track and it was ultimately sold to the Sheepshead Bay Speedway Corporation who used it for automobile racing. In December 1919, what the
Daily Racing Form called one of the most famous racetracks in the history of the American turf, was purchased for
real estate development. The facility was torn down and the land subdivided into building
lots. ==Thoroughbred stakes races at Sheepshead Bay==