Two years before the Kentucky Derby was run for the first time, Pimlico introduced its new stakes race for three-year-olds, the Preakness, during its first spring race meet in 1873.

Then Maryland governor Oden Bowie named the then mile and one-half (2.41 km) race in honor of the colt Preakness from Milton Holbrook Sanford's Preakness Stud in Preakness, Wayne Township, New Jersey, who won the Dinner Party Stakes on the day Pimlico opened (October 25, 1870). The New Jersey name was said to have come from the Native American name Pra-qua-les ("Quail Woods") for the area. After Preakness won the Dinner Party Stakes, his jockey, Billy Hayward, untied a silk bag of gold coins that hung from a wire stretched across the track from the judges' stand. This was the supposed way that the "wire" at the finish line was introduced and how the awarding of "purse" money came to be.

The first Preakness, held on May 27, 1873, drew seven starters. John Chamberlain's three-year-old, Survivor, collected the $2,050 winning purse by galloping home easily by 10 lengths. This was the largest margin of victory until 2004, when Smarty Jones won by 11 1/2 lengths.^[8]