In 2024, the horse racing industry witnessed its third consecutive annual decline in parimutuel betting. Despite efforts from casinos and other gaming sectors to bolster the sector, the financial downturn has persisted. The total wagering on Thoroughbred races in the United States dropped by 3.35% compared to the previous year, reaching approximately $11.26 billion. Additionally, the number of race days and races also decreased, signaling a challenging year for the sport. Efforts to revitalize the industry include subsidies from casino revenues and the introduction of historical horse racing (HHR) machines in several states. However, these initiatives have not yet managed to convert casino gamblers into horse racing enthusiasts.
Industry Financial Challenges and Casino Support
The horse racing sector faced significant financial hurdles in 2024, with a notable decline in betting activities. The total wagering on Thoroughbred races fell to about $11.26 billion, marking a 3.35% decrease from the previous year. This decline was exacerbated by a reduction in the number of race days and races held across the country. The industry has been grappling with challenges since 2020, when the COVID-19 pandemic disrupted operations. Despite these setbacks, various states are implementing measures to support the sport through casino-generated tax revenue.
To counteract the financial struggles, several states such as Massachusetts, New York, and Pennsylvania are channeling substantial tax revenue from commercial casinos into the horse racing industry. In Pennsylvania, casinos have provided over $4 billion in subsidies to horsemen since 2004. Nebraska is following a similar strategy, having approved racetrack casinos with slot machines, table games, and sports betting in 2020. These casinos aim to attract patrons back to the racetracks by integrating new facilities and amenities. Virginia, too, has embraced HHR machines, which have revitalized the Colonial Downs Racetrack with annual wagers exceeding $4 billion. Despite these efforts, the conversion of casino gamblers into horse racing bettors remains elusive.
Historical Horse Racing and Track Closures
Historical horse racing (HHR) machines have emerged as a potential lifeline for the struggling industry. These devices, resembling slot machines but functioning as parimutuel wagering terminals, have gained popularity in states like Kentucky and Alabama. The introduction of HHR has bolstered horse racing purses nationwide, increasing them by about half a percent in 2024 to over $1.3 billion. However, recent scandals involving prominent trainers have tarnished the sport's image, further complicating recovery efforts.
Despite the rise of HHR, the industry has not been immune to closures. New Jersey’s Freehold Raceway, one of the oldest racetracks in the country, officially closed its doors on December 28, 2024. Founded in the 1830s, Freehold had a rich history dating back to harness racing in 1854. Jointly owned by Penn Entertainment and Greenwood Gaming and Entertainment, the track's closure underscores the broader challenges facing the industry. Penn Entertainment, originally a horse racing company, continues to own the Penn National Race Course, highlighting the ongoing commitment to preserving this traditional sport. However, the future remains uncertain as the industry seeks innovative ways to attract new audiences and restore its former glory.