The Racing Association was incorporated in December 1997 following the signing of a Memorandum of Understanding (MOU) between the Horseracing Industry in Gauteng and the Gauteng Provincial Government. The essence of the agreement, signed on 30 June 1997, was that the parties agreed to re-organise and restructure the business of the racing industry into a single corporate entity to be listed on the Johannesburg Stock Exchange as soon as practically possible. The new company would have a broad base of shareholders with specific emphasis on previously disadvantaged communities.