Racetracks

The 489 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.

Nov 11, 2026 - Churchill Downs Reports Growth in Racing Revenue

• Racetrack operators are benefiting from historical racing gaming revenue, although operating costs and regional competition continue to pressure profitability, according to October 2026 earnings from Churchill Downs Incorporated. The company's live and historical racing segment generated $315 million in third-quarter revenue, up approximately 3.3% year over year. Segment adjusted EBITDA declined from $116 million to $111 million despite revenue growth. Increased revenue from Kentucky historical racing machine venues helped offset weaker performance in Virginia and New Hampshire. Churchill Downs also announced an expanded Thoroughbred Championship Series with the New York Racing Association beginning in 2027. The results highlight opportunities for racetracks to diversify revenue through gaming and major racing events while underscoring the importance of managing costs and regulatory changes.
• Growing attendance and corporate sponsorship interest are supporting portions of the US racetrack industry, according to NASCAR's November 2026 State of the Sport update. NASCAR CEO Steve O'Donnell reported significant attendance increases during the 2026 season, particularly among younger fans, alongside expanding social media engagement and new sponsorship investment. The organization also highlighted the return of Dodge to the Cup Series in 2027 and efforts to strengthen television audiences and fan engagement. Increased attendance can support racetrack operators through ticket sales, concessions, parking, hospitality, and sponsorship opportunities. However, NASCAR acknowledged that television audience growth remains a priority. The developments suggest that racetracks can strengthen their businesses by attracting younger spectators and improving the experience surrounding live racing events.
• US Thoroughbred racetracks posted improved safety results in the second quarter, with racing-related equine fatalities falling 18.5% year over year to 1.01 per 1,000 starts, according to HISA. The decline could help reduce reputational risk and strengthen public confidence in the sport. Training-related deaths also improved about 16% to 0.43 per 1,000 workouts. For racetracks, HISA’s new breakdowns by surface, track condition, and race type could help operators identify higher-risk conditions and target safety investments, although small fatality counts make early comparisons volatile. Synthetic surfaces posted the lowest reported fatality rate at 0.40 per 1,000 starts, while sloppy dirt and turf were higher. Continued gains could reinforce the importance of track maintenance, veterinary oversight and injury prevention.
• Falling consumer confidence could pressure US racetracks as households trim discretionary spending on wagering, admissions, and event-day purchases. The University of Michigan Index of Consumer Sentiment fell 7.5% in September to 47.8 and was 13.2% below a year earlier. Its Current Economic Conditions Index declined 1.9% to 50.9, while the Consumer Expectations Index dropped 11.1% to 45.8, signaling greater caution about future spending. Separately, The Conference Board Consumer Confidence Index edged down in August to 89.4 from 90.2. Its Present Situation Index improved to 121.2, but the Expectations Index fell to 68.2. For racetracks, weaker confidence could pressure attendance and per-visitor spending, increasing reliance on promotions, major race days, and ancillary entertainment.

Industry size & Structure

The average firm operates from a single location, employs 67 workers, and generates $18.5 million annually.

• The racetrack industry consists of about 489 companies that employ 32,800 workers and generate $9 billion in annual revenue.
• The industry is concentrated with the 20 largest firms representing over 80% 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.