Racetracks
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 500 racetracks in the US operate facilities for horse, dog, motorcycle, and automotive racing. Racetracks are either indoor or outdoor facilities that host scheduled races. For animal racing, track facilities draw in guests with gambling activities through pari-mutuel and off-track betting on race results. Racetracks promote races at a national or local level, depending on the size of the event. About 80% of the industry is comprised of small racetracks with less than 20 employees.
Heavy Regulation
The racetrack industry earns the majority of its revenue from gambling activities, resulting in significant legal and taxation requirements.
Transaction and Data Security
In an industry with massive amounts of digital money flowing back and forth between gamblers and racetracks, along with significant volumes of personal data collected from customers, horse racing is a particularly attractive target for online thieves, hackers, and other bad actors.
Industry size & Structure
The average firm operates from a single location, employs fewer than 20 workers, and generates $16 million annually.
- The racetrack industry consists of about 500 companies that employ 28,200 workers and generate $8.2 billion in annual revenue.
- The industry is concentrated with the 20 largest firms representing 76% of industry revenue. The 25 largest companies employ 64% of the industry's total workforce.
- Large companies include Churchill Downs, The Stronach Group, New York Racing Association, National Association of Stock Car Racing, and Del Mar Thoroughbred Club.
- Gamblers bet a total of about $11 billion on horse racing each year.
Industry Forecast
Racetracks Industry Growth
Recent Developments
Nov 19, 2024 - NASCAR Track Modernization
- Renovations, including safety upgrades, are underway at North Carolina's Bowman Gray Stadium in preparation for the season-opening NASCAR Clash in 2025, NASCAR News reports. The February event will be the stadium’s first premier division event since 1971. The quarter-mile track is being equipped with SAFER barriers, the steel and foam energy reduction system that has become a life-saving feature at every NASCAR national series racetrack. New catch fences are also being installed to enhance safety. Renovations began in October with the dismantling of the old guardrail system, paving the way for modern upgrades. By early January, the installation of the new safety features is slated to be complete. The project is a collaboration among NASCAR, the City of Winston-Salem, and Winston-Salem State University and highlights the importance of modernizing the track to accommodate contemporary racing requirements. Gray Stadium (aka “The Madhouse”) was built in 1937.
- Average wages for nonsupervisory employees at spectator sports, including racetracks, were $27.73 per hour in September, a 10.9% jump compared to a year ago, according to the latest US Bureau of Labor Statistics data. Sales for the US industry are forecast to grow at a 5.24% compounded annual rate from 2024 to 2028, faster than the growth of the overall economy, according to the Interindustry Economic Research Fund.
- The redevelopment of Belmont Park – home to the third leg of the horse racing's Triple Crown – is estimated to be complete by the third quarter of 2026, according to the New York Racing Association (NYRA). New York State provided the NYRA with a $455 million loan to finance the reconstruction, to be paid back by NYRA. Next year’s Belmont Stakes will be held at Saratoga Race Course, as it was in 2024, allowing for uninterrupted construction. To date, the grandstand has been demolished and excavated, and the footing has been installed. The new grandstand will be smaller and feature more modern amenities and green space, as well as an all-weather track that’s considered safer and extends the racing season, according to NYRA. Racing and non-racing activities at the new facility are projected to generate $155 million in annual economic output, per NYRA.
- Racing-related equine fatalities are trending downward following the implementation of the Anti-Doping and Medication Control Program (ADMC) in May 2023, the Horseracing Integrity and Safety Authority (HISA) announced in July. According to HISA’s 2024 Second Quarter Metrics Report, which measures fatalities per 1,000 starts, the fatality rate has declined for four consecutive quarters, including about a 49% decrease year over year in the second quarter (April 1 – June 30) of 2024. Racetracks operating under HISA’s rules and running races in the second quarter reported 0.76 racing-related equine fatalities per 1,000 starts, compared to 1.48 racing-related equine fatalities per 1,000 starts in the second quarter of 2023. “Thoroughbred racing is consistently getting safer with HISA’s involvement and the commitment of our racing stakeholders, especially the horsemen and veterinarians who work so diligently under HISA to keep horses safe,” said HISA CEO Lisa Lazarus.
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