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
Jan 19, 2025 - Equine Fatality Rate Falling
- According to the Horseracing Integrity and Safety Authority’s (HISA) most recent metrics report, the third quarter of 2024 marked the third consecutive quarter of year-over-year declines in the racing-related equine fatality rate since the launch of its Anti-Doping and Medication Control Program, initiated in May of 2023. The Q3 fatality rate fell approximately 21% YoY, with racetracks operating under HISA’s rules reporting 0.93 racing-related equine fatalities per 1,000 starts as compared to a rate of 1.18 in the third quarter of 2023. However, racing fatalities per 1,000 starts rose from 0.76 in Q2 to 0.93 in Q3. During Q2 2024, fatalities at racetracks in the non-HISA states – Louisiana, Texas, and West Virginia – totaled 2.38 racing-related fatalities per 1,000 starts, more than triple the fatality rate at racetracks operating under HISA’s rules during the same period, per HISA’s report.
- Remote broadcasting – a strategy first adopted as a safety measure during the pandemic that persisted because it saves networks money – is a growing trend in sports broadcasting that’s become a particular sore spot with NASCAR fans, Slicks and Sticks reports. Rather than sending broadcasters and production teams to live events, they work from a studio far from the track or event site. While it's efficient and cheaper for networks, NASCAR fans have complained that remote coverage diminishes the viewing experience and lacks authenticity. FOX Sports and The CW, two of NASCAR’s broadcast partners, landed at the center of the controversy following a FOX reporter's comments on X that remote broadcasts are set to expand, especially for Truck and ARCA broadcasts, according to S&S. Critics argue remote broadcasts fail to capture the drama intrinsic to NASCAR and that networks are prioritizing cost savings over the quality of race coverage.
- Churchill Downs and the New York Racing Association in December filed a joint lawsuit against the Horseracing Integrity and Safety Authority (HISA) following the threat of a shutdown. The suit states HISA threatened to prohibit racing until they pay millions of dollars in assessment fees that help to support HISA’s budget. According to HISA, the two horseracing tracks have refused to comply with the Assessment Methodology Rule, as approved by the Federal Trade Commission, that was created to allocate the costs of HISA’s operations to state racing commissions and/or covered persons involved with covered horse races. The suit says HISA asked Churchill Downs to pay nearly $2 million in fees within 20 days. If payment wasn't made, the order said Churchill Downs and Ellis Park would be prohibited from conducting any covered horse race for each day it was late.
- Average wages for nonsupervisory employees at spectator sports, including racetracks, were $27.37 per hour in October, up 5.3% 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.
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