In a notable shift for the American horse racing industry, February 2025 witnessed a significant downturn compared to the previous year. According to Equibase data, betting on U.S. races, including global commingled wagers, experienced an 8.01% decrease from $838.3 million in February 2024 to $771.2 million in February 2025. Additionally, both available and paid purses saw reductions of 10.07% and 11.26%, respectively. The number of race days and total races also declined by 13.10% and 11.33%. Despite these overall declines, some positive trends emerged, such as an increase in average field size and average wagering per race day.

The downturn in the horse racing sector can be attributed to several factors. One key reason is the reduction in the number of racing events. In February 2025, there were fewer opportunities for betting, with the number of race days dropping from 252 to 219. This decline impacted not only the volume of bets but also the purse amounts available for winners. The total available purse fell from $86.4 million to $77.7 million, while the total paid purse decreased from $82.6 million to $73.3 million. These figures highlight the financial strain faced by the industry.

Furthermore, the total number of races also saw a substantial decrease, falling from 2,154 to 1,910. This reduction in racing activities has had a cascading effect on various aspects of the sport. Fewer races mean less betting activity, which in turn affects the overall revenue generated by the industry. Additionally, the number of individual horse entries, or starts, dropped by 8.11%, from 16,581 to 15,237. This decline suggests a reduced participation rate among horses, possibly due to economic factors or changes in racing schedules.

However, not all metrics showed negative trends. Average field size—the number of horses per race—increased by 3.63%, rising from 7.70 to 7.98. This improvement indicates that races are becoming more competitive, which could potentially attract more interest from bettors. Moreover, average wagering per race day grew by 5.85%, from $3.33 million to $3.52 million. Similarly, average available purses per race day increased by 3.49%, from $342,908 to $354,864. These positive indicators suggest that despite the overall decline, certain areas of the industry remain resilient.

Looking at the broader picture, the year-to-date handle stands at approximately $1.57 billion, which is 2.7% lower than the nearly $1.62 billion wagered in the same period in 2024. While this represents a modest decline, it is important to note that wagering in 2024 was already 3.4% lower than in 2023. These trends underscore the challenges facing the U.S. horse racing industry and highlight the need for innovative strategies to revitalize the sector.