Horse racing betting has been a popular pastime for many decades, but recent trends show a decline in its popularity in the United States. The handle for horse betting totaled $1.1 billion nationwide in August, marking a 7 percent decline from the previous year.
This downward trend has been consistent for the past 11 months, as reported by Equibase. In contrast, U.S. sports betting surpassed $3.31 billion in August, indicating a shift in consumer preferences.
One of the factors contributing to the decline in horse racing betting is the decrease in field sizes and the number of races. In August 2023, there were nearly 200 fewer races nationwide compared to the previous year. The New York Racing Association (NYRA) reported a 9 percent drop in wagers on Saratoga races, handling $800 million in bets, down from $878.2 million in 2022. The limited number of races and smaller field sizes lead to fewer betting opportunities, resulting in a decrease in overall handle.
Another reason for the decline in horse racing betting is the limited wagering menu compared to sports betting. While sports betting offers a wide range of betting options including prop bets and traditional future wagers, horse racing typically features a more restricted menu. This limited variety may make horse racing a less attractive and competitive product for bettors, leading to a decrease in betting activity.
The perception of horse racing among the general public plays a crucial role in its popularity and betting activity. In recent years, there has been increasing scrutiny and concern regarding equine safety and welfare in the sport.
Between May and August, 16 horses died at Saratoga, including eight fatalities during races, which were broadcasted on national TV. These incidents, combined with previous horse deaths at Churchill Downs during Kentucky Derby week, have raised questions about the ethics and treatment of horses in the racing industry. Such negative publicity can impact public perception and contribute to a decline in horse racing betting.
The decline in horse racing betting is just as bad on the West Coast. Del Mar, a popular summer racing meet in San Diego, experienced a decline in handle, with bets totaling $391.8 million in 2023, down from $439.7 million the previous year. This decline in betting activity further emphasizes the challenges faced by the horse racing industry in attracting and retaining bettors.
And the U.S. is not the only place in North America where the decline in horse racing betting has been affected. Canada is also seeing an adverse effect on horse racing.
Covers recently reported documents obtained from the Canadian government that showed they are concerned about horse racing after it changed legal sports betting in the country in 2021 to include single-event wagering for all sports but horse racing.
The documents show that horse racing “is largely dependent on gambling dollars.” It also reported that the industry was facing “financial pressures.”
Given the decline in horse racing betting and the challenges faced by the industry, it is essential to assess whether there is a future for the sport. While the current trends may seem bleak, there are potential strategies and initiatives that can be implemented to revitalize horse racing betting. Some that have been suggested are increasing the wagering menu to include prop bets and incorporating technology, such as live betting.
