Racetracks NAICS 711212

Jan 16, 2026 - Fewer Races, Falling Handle in 2025

• US racetracks ended 2025 under continued financial pressure as wagering on Thoroughbred racing fell 2.1% year over year to just over $11 billion, marking the fourth consecutive annual decline, according to Equibase data reported in The Paulick Report. December handle dropped a sharper 7.3%, reflecting fewer race days and races rather than weaker per-event performance. In fact, wagering and purses per race day rose modestly, indicating that remaining dates are carrying more economic weight. For operators, the results mask a deeper structural challenge: total races have fallen 45% since 2003, while wagering is down 27% over the same period. Purses now equal 11.6% of handle, up from 7.2% in 2000, underscoring racetracks’ growing reliance on alternative revenues such as gaming subsidies. Without new growth drivers, the industry risks handle falling below $11 billion in 2026, intensifying consolidation and financial strain for US racetracks.
• The racing-related equine fatality rate was 1.02 fatalities per 1,000 starts in Q3 2025, equating to 99.9% of all Thoroughbred horserace starts occurring without a fatality within 72 hours of racing due to race-related injuries, according to the Horseracing Integrity and Safety Authority’s (HISA) most recent metrics report. For training-related fatalities, HISA has seen a 10% year over year decrease in Q3 2025, falling to 0.38 deaths per 1,000 workouts. The metric measures the horses that die or are euthanized within 72 hours of training as a result of injuries sustained during training. Twelve racetracks posted progress in their year-over-year racing fatality rate in Q3 2025, among the 29 racetracks open for racing during the quarter.

• US consumer confidence weakened for a fifth straight month in December, signaling a more cautious spending environment that has direct implications for racetracks. The Conference Board’s Consumer Confidence Index fell to 89.1, while the Expectations Index remained below the recession-warning threshold of 80 for an 11th month. Consumers reported worsening views of business conditions, jobs, and current household finances, and vacation plans continued to decline. Spending patterns in 2025 shifted toward lower-cost entertainment and essential services and away from highly discretionary activities. For racetracks, the trend suggests continued pressure on attendance, premium hospitality, and destination racing tied to travel, even as some demand may persist for affordable, local “cheap thrills.” While future family financial expectations improved modestly and recession fears eased at the margin, the near-term outlook points to a selective, value-driven consumer rather than a broad-based rebound in leisure spending.
• Immigration raids are impacting the racetrack industry, according to the Associated Press. In one example, the US Immigration and Customs Enforcement (ICE) conducted a raid at Delta Downs Racetrack, Hotel, and Casino in Calcasieu Parish, resulting in 80 arrests in June 2025, after receiving a tip about unauthorized workers. Some in the racing industry spoke out following the raid, saying that the raid left the racetrack without essential workers such as groomers and stable workers who provide horses with skilled care around the clock. Peter Ecabert, general counsel for the National Horsemen’s Benevolent and Protective Association representing 29,000 thoroughbred racehorse owners and trainers, said the racetrack would have been willing to work with ICE to make sure things were done in an orderly way. “To come in and take that many workers away and leave the horse racing operation stranded and without workers is unacceptable,” he said.