Exploring the Thriving Global Horse Racing Market Size

The global horse racing market, estimated at $44.3 billion in 2022, is expected to increase significantly. Projections suggest it will nearly double to reach $91.2 billion by 2032. 

This report delves into the critical elements and growth catalysts within different regions propelling this surge in the horse racing market’s value—information crucial for investors and key players in the industry.

Understanding the Global Horse Racing Market

The horse racing market operates internationally and is characterized by its vibrancy and variety. 

It earns revenue through several streams, including betting, sponsorships, broadcast rights, and sales at the event locations.

This entertainment sector attracts significant attention across various nations such as the United States, United Kingdom, France, Australia, Canada, Hong Kong, Malaysia, and Japan, where it has evolved from regional events to captivating global audiences.

This segment continues to experience notable expansion, fueled by merging international competitions with domestic wagering systems and expanding worldwide engagement in horse racing activities, particularly within Asia Pacific. 

Have you ever wondered how long is 31 lengths in horse racing or how aspects of the race work? This growing curiosity and engagement are contributing to the industry's rapid development.

By integrating these elements, the industry enhances the spectator experience and fosters a deeper connection between the sport and its global fanbase.

Defining the Scope of the Market

The global horse racing market encompasses events from the renowned Kentucky Derby to regular races held at local tracks. 

Horse racing's significance and allure are particularly noticeable in regions such as the United Kingdom, where it’s reported that around six million individuals visit various horse racing venues annually.

Esteemed historical competitions draw in the finest horses, along with elite jockeys and trainers, amplifying the grandeur of these equestrian sports and expanding its global market reach.

Revenue Streams Fueling the Market

A substantial portion of the horse racing market’s income is generated through several vital streams:

• Wagering endeavors constitute a significant driver for expanding the sector

• Sponsorships play a critical role

• Earnings from selling broadcasting rights

• Income derived from events held at racing venues

The prominence of these various revenue sources bolsters each other.

This array of financial channels working together ensures the ongoing expansion and steadfastness within the horse racing industry.

The Scale of the Horse Racing Betting Market

The horse racing betting market, a pivotal element within the global industry, has been rapidly expanding.

In 2022, its value was estimated at $44.3 billion, and it is anticipated to surge to $91.2 billion by 2032, essentially doubling in size. 

This upward trend will likely be prominent in territories such as the US, where new online betting platforms face more significant barriers to entry.

It’s expected that by 2030, the sports betting market in Asia Pacific regions alone will attain a valuation of USD 60.34 billion—a testament to the burgeoning popularity of horse racing wagers on an international scale.

Online Betting Platforms' Impact

The digital era has transformed the horse racing betting market through the advent of online betting platforms. 

Enhanced digital connectivity has enabled more consumers to participate in horse racing betting, which stimulates growth within this market.

With an expanded variety of markets and features like live streaming and in-play wagering, these online betting platforms have made it more convenient and thrilling for enthusiasts to participate in this sport as both a pastime and a leisure activity.

The Popularity of Different Bet Types

The variety of bet types available in horse racing accommodates punters' varying degrees of knowledge and risk appetite. 

Beginners typically gravitate towards straight bets like win, place, and show due to their simplicity and popularity. 

Conversely, exotic bets attract experienced gamblers enticed by more intricate betting options offering a higher excitement level.

In recent years, enhancements such as micro-betting and live streaming have transformed betting into an interactive experience that captivates audiences with the immediacy of real-time engagement during races.

Key Players in the Horse Racing Industry

Key international entities such as Kindred Group plc, MGM Resorts International, and Entain play a pivotal role in the global horse racing industry. 

Alongside these are notable organizations like Del Mar Thoroughbred Club and Churchill Downs, Inc., Boyd Gaming Corporation, NYRA, Tabcorp Holdings Limited, OPAP S.A., and Flutter Entertainment plc. 

These leading figures in the horse racing sector utilize varied business approaches to sustain and bolster their standing within the global market.

Dominant Horse Racing Entities

Churchill Downs Incorporated is a crucial player with substantial clout in horse racing. 

This enterprise, along with others like MyRacehorse, WinStar Stablemates, and the Churchill Downs Racing Club, has carved out niches by offering novel ways for individuals to get involved in horse ownership.

These organizations furnish a spectrum of participation methods. They extend from micro-ownership shares in thoroughbreds to options for leasing rights, thus accommodating diverse preferences regarding commitment levels and financial investment into horse ownership.

Influence of Racing Clubs and Associations

Racing clubs and associations are pivotal in setting market trends and upholding the integrity of horse racing. 

Organizations such as the Gulfstream Park Racing Association, National Thoroughbred Racing Association, New York Racing Association, Jersey Thoroughbred Horsemen’s Association, and York Racing Association exert considerable influence on thoroughbred racing governance. 

Alongside these prominent bodies stands a well-known body. 

The Jockey Club, along with others like the Associations of Race Commissioners International, collectively offers its members networks that provide access to sales opportunities for horses, expert racing insights, and privileged information beneficial to a variety of stakeholders, including breeders, owners, bettors, and bookmakers alike.

Initiatives pioneered by esteemed race clubs have nurtured new ownership within the Thoroughbred sector. 

These programs facilitate growth from fractional or syndicate ownership models into complete control over horseracing entities and development breeding facilities, thus easing the transition towards independent operations among industry enthusiasts interested in deepening their involvement in sport.

Regional Insights into the Horse Racing Market

Regional factors are a major driving force behind the horse racing market, with contributions from North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa fueling its expansion.

Significant events such as the Kentucky Derby, Belmont Stakes, and Breeders’ Cup position North America as essential in bolstering the global horse racing market.

North American Market Dynamics

North America dominates the global horse racing market, buoyed by a robust betting culture, esteemed events in the racing calendar, and an advanced gambling ecosystem. 

New York state stands out within this context as it hosts Belmont Stakes, among other Grade 1 horse races—more than any other state—including highlights such as the Travers Stakes held at Saratoga.

North America is anticipated to sustain its position at the forefront of global horse racing due to ongoing major equestrian competitions, including traditional flat races and showjumping events.

Emerging Markets and Their Potential

The horse racing industry in the Asia-Pacific area is being recognized as a burgeoning market with substantial prospects for significant expansion. 

Throughout the forecast period from 2023 to 2029, Europe and the Asia-Pacific region are anticipated to demonstrate impressive growth within the global horse racing market. 

During this same timeframe, nearly half of the expansion of the worldwide equine and sports wagering market — precisely 49% — is projected to be driven by developments in the Asia-Pacific sector.

Japan has emerged as an influential force within this regional landscape regarding thoroughbred breeding and participation in the horse-betting sphere.