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
Dec 19, 2024 - Horseracing Tracks Sue HISA
- 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.
- Following allegations of race manipulation at the Xfinity 500 at Martinsville Speedway in November, NASCAR has launched an investigation and is mulling elevated penalties for future race manipulation, SI’s Racing Today reports. The controversy surrounding the race, which determined which drivers advanced to the championship-4 lineup, centered on driver William Byron's advancement to the finals but extends to a group of drivers. NASCAR determined that manipulation was prevalent at the race’s finish. In response, it levied penalties and threatened additional penalties for future infractions. The largest fines were levied against the three teams accused of race manipulation, according to Racing Today. Moreover, NASCAR suspended nine members of three teams, fined the drivers and teams involved a combined $600,000 ($100,00 for each driver and $100,000 for each team), and each driver and team was docked 50 championship owner and championship driver points.
- 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 $27.37 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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