New Study Shows Horse Racing in Decline

Horse racing has been in decline in the United States for decades, and a recent study by the Jockey Club suggests that things may only get worse for the industry in the years to come.

The study, which was conducted by consulting firm McKinsey & Company, found that overall betting on horse racing is down 37 percent over the last decade, with racetrack attendance down 30 percent.

Much of the decline was attributed to public perceptions of horse racing. Just 22% of those surveyed said they had a positive impression of horse racing, which resulted in a slow decline in the number of people who considered themselves fans of the sport. According to the study, current trends would see thoroughbred racing lose fans at a rate of 4% per year, reducing an already shrinking market. If the trend continues, it is expected that many tracks may have to close, and losses to horse owners and breeders will increase.

However, another aspect to the decline has been the growth of online and casino gambling. While horse racing was in decline over the last decade, commercial casinos were thriving, seeing a 34% growth from 2001 to 2010. Both online and casino gambling were cited as being easier for new gamblers to jump into than horse racing, both due to availability and the ease of learning how to participate.

There are some positive signs for the industry. While thoroughbred racing in general is in decline, elite racing – the core product in the eyes of the public – has done fairly well. Attendance at the Kentucky Derby is up 8% compared to a decade ago, and while betting is down in absolute amounts, the betting per race on Grade I and II races is up by 23%.

Considering the popularity of casino gambling and the decline in interest in horse racing, it’s no surprise that many race tracks have turned to slot machines and other casino games as a secondary – and increasingly, primary – source of income. According to the report, “racinos” now take in $6.7 billion on wagering.