The American horse racing industry has experienced a third consecutive year of declining betting activity, with total wagers reaching $11.26 billion in 2024—a decrease of 3.35% from the previous year's figure of $11.65 billion. December witnessed the most significant monthly decline, dropping by 14.44% compared to the same period in 2023. This ongoing trend highlights the growing challenges faced by both horse and harness racing as they compete with other forms of gambling.
Other key metrics also saw reductions in 2024. The number of race days fell by 2.37%, while the total races and starts decreased by 2.82% and 2.63%, respectively. Additionally, the foal crop has significantly diminished since 2008, shrinking by approximately 44%. Despite slight increases in prize money, these improvements have not offset the broader declines. The introduction of historical horse racing (HHR) machines has attempted to bolster revenues but has not significantly converted casino patrons into horse race bettors.
Industry Metrics Reflect Widespread Challenges
The downturn in the horse racing sector is evident through various metrics. In 2024, the total handle for betting on horses amounted to $11.26 billion, marking a 3.35% drop from the prior year. The sharpest decline occurred in December, where bets plummeted by 14.44% compared to the same month in 2023. Harness racing also suffered, with bets falling by 7.23% to $1.47 billion. The fourth quarter saw an especially steep decline of 11.28% compared to the same period in 2023.
Other critical indicators also reflected this downward trend. Race days declined by 2.37%, while the total number of races and starts dropped by 2.82% and 2.63%, respectively. December's numbers were particularly stark, with a 4.33% reduction in race days, a 6.38% decrease in races, and an 8.38% drop in starts. Furthermore, the average field size shrank slightly from 8.18 in December 2023 to 8.01 in December 2024. These figures underscore the mounting concerns about the future sustainability of the sport.
Strategic Shifts Amid Changing Gambling Preferences
Beyond the immediate financial metrics, the horse racing industry faces deeper structural challenges. The North American foal crop has dwindled by 44% since 2008, from over 32,000 to an estimated 18,000 in 2024, the lowest since 1965. Today’s horses make fewer starts, averaging just 5.87 races per year compared to 10.22 in 1967. This reduction in available horses and starts contributes to fewer races being run, with only around 30,852 races occurring in 2024 compared to over 52,000 in 1967.
In response to these challenges, the industry is exploring new strategies to revitalize interest. While prize money increased slightly by 0.49% to reach a record $1.31 billion, this improvement has not been enough to counteract broader declines. The introduction of HHR machines has aimed to boost revenue, particularly in states like Virginia, but has not significantly converted casino patrons into horse race bettors. Industry insiders remain hopeful that online gambling markets may renew interest in horse racing. Traditional horse racing states like Kentucky have found success in alternative gaming revenue, reporting over $272 million in adjusted gross revenue from sportsbooks in 2024. As the gambling landscape evolves, the future of horse racing depends on adapting to these changing trends through digital platforms, enhanced betting technology, or integrating sports betting.