The horse racing industry in the U.S. is showing signs of a potential resurgence, despite the closure of America’s oldest track, Freehold Raceway, after 170 years of operation. In 2023, the sport contributed over $36 billion to the U.S. economy and supported nearly half a million jobs. The industry’s revenue streams include ticket sales, hospitality, merchandise, TV licensing, sponsorships, and gambling. Global revenue estimates range from $44 billion to nearly ten times that amount, with a projected compound annual growth rate of about 9%.
Gambling is a key driver of this growth, with $12 billion wagered on horse races in 2022, setting a new record. This increase in betting has led to a record $1.25 billion in total purse money awarded that year. The Kentucky Derby, a major event, saw betting volumes on par with the Super Bowl in 2024, with Churchill Downs reporting a significant increase in adjusted EBITDA during Derby Week.
Investments in facilities are also on the rise, with Churchill Downs spending $300 million on improvements, Belmont Park undergoing a $500 million renovation, and Maryland approving $400 million for Pimlico’s overhaul. These investments aim to modernize facilities and attract a new generation of fans through enhanced experiences and technology integration.
However, the industry faces challenges, including a decline in interest in everyday races, with pari-mutuel betting down 55% since 2000 when adjusted for inflation. The number of owners, horses, and trainers has also decreased over the past two decades. Efforts to improve horse welfare and regulatory oversight are underway, with the Horseracing Integrity and Safety Authority (HISA) reporting a significant reduction in horse deaths from 1.41 per 1,000 race starts in 2020 to 0.9 in 2024.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
