The American Thoroughbred racing sector concluded 2024 with the lowest betting totals since the pandemic-affected year of 2020. The industry experienced a significant downturn, marked by reductions in race days, races, and starts. Despite a slight increase in purse totals, the overall trend indicates ongoing challenges within the sector.

Industry Performance Metrics Show Steep Declines

The year 2024 saw notable drops across various performance metrics in American Thoroughbred racing. December recorded a substantial decline in betting handle, reflecting a trend seen throughout the year. Additionally, the number of race days, races, and starts all decreased, signaling broader issues within the industry.

In December, the betting handle fell by 14.44% compared to the same month in 2023, reaching $682 million. This sharp drop was part of a series of double-digit percentage declines observed earlier in the year. The reduction extended beyond betting, impacting race days (-4.33%), races (-6.38%), and starts (-8.38%). Average field size also shrank from 8.18 to 8.01 starters per race, a decrease of 2.13%. Total wagers for 2024 amounted to $11.27 billion, marking a 3.35% decline from the previous year. These figures represent the third consecutive year of decreases, underscoring the persistent challenges facing the industry.

Long-Term Challenges Impact Racehorse Population and Racing Events

The decline in the number of race-ready horses is a critical factor contributing to the industry's struggles. A shrinking foal crop has led to fewer races and starts, highlighting long-term structural issues. The reduced supply of horses has had lasting repercussions on the number of racing events held annually.

The estimated 2024 foal crop of 18,000 is the smallest since 1965, when 18,846 Thoroughbred foals were born. Breeders began leaving the industry during the 2008 financial crisis, resulting in a diminished supply of race-ready horses. In 1967, North America hosted 52,315 races; in 2024, only 33,500 races were held in the U.S. and Canada combined. Fewer average starts per horse have declined from 10.22 annually in the 1960s to 5.87 in recent years. For context, U.S. pari-mutuel wagering peaked in 2003 at $15.1 billion, equivalent to $25.7 billion in 2024 dollars. Adjusted for inflation, the 2024 total represents a 56% decline from that high. Despite these challenges, year-end purse totals increased slightly by 0.49%, setting records for both available purses ($1.31 billion) and purses paid ($1.25 billion). However, the source of purse funding remains unclear, as Equibase does not specify whether it comes from pari-mutuel wagering or other sources like casinos or historical horse racing.