Horse Racing Wagers Continue to Decline in United States

Not all of our best sports betting sites are in the horse racing business, but you can get definitely find your spots to get down action. However, news isn't all rosy on the horse racing betting front.

Pari-mutuel wagers made on thoroughbred horse racing in the United States have declined for the third consecutive year.

Although this type of racing is the most popular within the States, it has failed to retain popularity over the years. According to Equibase and Ray Paulick of the Paulick Report, wagering on thoroughbred races totaled around $11.26 billion, a 3.4% decline from the previous year, which generated just over $11.65 billion in wagers.

The number of races also declined for the year, with 2.4% fewer race days and a 2.8% decrease in the total number of races, which ended up being 30,852. 

“A dismal December for US wagering on thoroughbred horse racing put an exclamation point to the worst year for the industry since 2020, when businesses throughout the country were affected by the COVID-19 pandemic,” Paulick wrote in his report.

America's oldest raceway closes

As popularity continued to dwindle, news came that America’s oldest raceway, Freehold Raceway, was ceasing operation after 170 years. The New Jersey track, co-owned by Penn Entertainment, had to close due to lower attendance and a lack of interest, which resulted in a revenue decline. 

“Unfortunately, the operations of the racetrack cannot continue under existing conditions, and we do not see a plausible way forward,” said Howard Bruno, the racetrack’s general manager, in a announcing the closure.

Despite this, horse racing enthusiasts and industry insiders believe the sport is on track for a resurgence in the United States through increased interest in online gambling. 

Revival through HHR games

In addition to rising interest in online gambling markets, in various states, including New York and Pennsylvania, direct revenue is generated from casinos for their horse racing industries. 

In addition, Virginia lawmakers legalized historical horse racing machines (HHR) in 2018. These slot-like terminals act as pari-mutuel wagering platforms, saving the Colonial Downs Racetrack from closing after players wagered more than $4 billion annually. 

Moreover, iGaming company Everi announced its launch into HHR markets by expanding its TournEvent platform, debuting at Gate City Casino in New Hampshire. The casino now has over 500 HHR machines after being added in 2023. Through the TournEvent platform, Everi promises to bring cutting-edge slot technology and player-focused engagement to the market. 

However, even though HHR machines have become popular among casino players, Equibase data shows that despite revenue increasing by half a percent nationwide, casino gamblers aren't being converted to horse race bettors. 

Horse racing states finding revenue in other forms of gaming

Despite declining figures in horse racing revenue, traditional horse racing states like Kentucky still found success in their sportsbook revenues. The Kentucky Horse Racing and Gaming Corporation (KHRGC) reported that adjusted gross revenue (AGR) reached over $272 million in the state's first year, with $2.3 billion being wagered at online sportsbooks. 

DraftKings was the most popular sportsbook among bettors, generating $895 million for the year, closely followed by Fanatics, which generated $817 million. 

Sports betting uses a different betting system than pari-mutuel horse racing betting, using fixed odds set once you place your wager. These bets are regulated entirely differently from pari-mutuel horse racing betting, which is why many of our best sports betting apps may not offer horse racing betting.