Old Magic Broom was a rare drop from the Headless Horseman. The Horseman is found in the graveyard wing of Scarlet Monastery during the Hallow's End seasonal event. This item no longer drops; it has been replaced by the [Magic Broom] that scales with the player's riding skill.
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With patch 2.4.3, the level requirement for training mounts will be lowered to 30 and so there is a new item available.