Horse Racing Market Size, Share, Growth, and Industry Analysis, By Type (Win Bet, Each Way, Single Bet, Mutliple Bets, Straight Forecast, Reverse Forecast, Tricast & Others), By Application (Online, Racecourse, Lottery Store & Other), and Regional Forecast to 2033

Last Updated: 16 January 2025

HORSE RACING MARKET OVERVIEW

The global Horse Racing market size expanded rapidly XX in 2024 and is projected to grow substantially by 2033, exhibiting a prodigious CAGR XX during the forecast period.

Thoroughbred horse racing is an exciting, ancient performance sport in which the horse jockeys compete against each other at breakneck speed for a particular distance. This classic event reveals the stubbornness and dexterity of the animal, which is an integral part of this fight and rider; it requires a combination of power and cleverness. A horse race may be run on a dirt track, a turf track, or a synthetic track, all having different characteristics. The races themselves can be as short as you imagine sprints, but they can also be longer tests of stamina. Obviously, speed is a close friend, but in many occasions, jockeys are also expected to be strategists: they must know when to urge their horses on and when to save that final effort for the finishing line. 

COVID-19 IMPACT

Horse Racing Industry Had a Negative Effect due to Cancellation of Races

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The COVID-19 outbreak had a huge impact on this industry, mainly because of measures that had to be taken to limit the further virus transmission. The first effect that racing stakeholders and players noticed was the increased rate of race and racing meet cancellations across the world, even including high-profile meets that attract large crowds and obviously a lot of returns. This led to appropriate sufferer economic consequences for racetracks, horse owners, trainers, jockeys, and related industries. Due to limited access or total ban on social gatherings, even when races were to be held, they had to be conducted behind closed doors, eradicating a major source of funding from ticket sales, concessions, and on–track betting. This was especially felt in small tracks that depend so much on gate receipts. Also, it disrupted breeding and sales services due to lockdown, movement restrictions, and other negative effects that the COVID-19 pandemic brought to the market of racehorses.

LATEST TREND

" Growth of Bets to Propel the Market Growth"

This market is rapidly growing currently, and there are several factors that are influencing this market. The growth of the number of bets and the convergence of the betting industry with the digital environment are some of the most apparent trends. This has greatly extended the horse race and brought fans closer to the race and enabled them to place their bets from anywhere in the world. This trend is added to the developments in technology, including live streaming, mobile applications, and some form of betting system with up-to-date odds and statistics. Another trend to be discussed is the concentration on the horse protection and its safety measures, enhanced by such factors as improved legislation, modern veterinary knowledge, and tendencies at reduction of the number of race-associated traumas. 

HORSE RACING MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Online, Racecourse, Lottery Store & Other

• Win Bet: This is the most basic type of bet by far and requires the bettor to pick out a horse to be the winner of a race. It is clear and simple—this makes it possible for newcomers to bet easily.
• Each Way: This particular bet is equal to a “win” bet and a “place” bet. Should the selected horse come out victorious, then the player gets paid on both of the bets. Should the horse end up within a pre-described place (often the second or third position depending on the number of runners), the bettor gets a payout on the place component of the bet.
• Single Bet: This involves placing a bet on a single result in a single competition. It can exactly be a win, place, or other types of bets, but it is tailored to only one event.
• Multiple Bets: These bets include those whereby a better is allowed to place more than one choice in a single bet. For instance, we're picking out winners of two distinct races. In order for the bet, only both selections of the bet have to triumph. Picking the favourites of three distinct races. In all three of the selections, they have to be fortunate enough for the bet to which they have placed to be successful.
• Straight Forecast: This involves selection of horses in a certain race and coming up with the actual order of the first and second place in that race. That is why this bet is more complicated compared to the previous one, but it also has greater chances.
• Reverse Forecast: This is a bit like the straight forecast, but the bettor selects which of the horses will occupy the first two places, in any order. It gives better odds of hitting than a straight forecast but with slightly lower odds of winning.
• Tricast: This involves identifying which of the martingale horses will be able to finish first, second, and third properly within a certain particular race. Of all the common bet types, this is the most difficult but will have the highest returns.

By Application

Based on application, the global market can be categorized into Army, Navy & Air Force

• Online: This segment has been growing annually in the recent past due to the growing availability of the internet and mobile devices. Another advantage of undertaking racing online is the ease of access to races from anywhere in the world, bet placing, and race information. This segment consists of online sportsbooks and exchange betting platforms.
• Racecourse: This traditional segment involves attending races in person at a physical racetrack. The top three traditional segments are. It provides a distinctive environment and opportunity where fans can watch races as specific spectators. This segment covers on-track betting & hospitality and entertainment.
• Lottery Store: Betting is available in some stores selling lottery products or similar products, which basically is a synchronisation of services with already licensed book makers. This means that there is a better alternative for those who cannot have access to online betting or those living near the racetrack. This segment is comprised of retail betting terminals and over-the-counter betting.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.                  

Driving Factors

"Increasing Popularity of Online Betting and Technological Advancement to Expand the Market"

A factor in the Horse Racing market growth is the Increasing popularity of online betting and technological advancements. The internet and, more significantly, the availability of websites and mobile applications have dramatically changed the involvement and interaction of people with the this business. This has gone a long way in expanding coverage of the sport. While it has been opened to the entire world, as everyone can be able to watch and conveniently bet from anywhere at any time. The introduction of live streaming, updated schedules of odds, as well as the operational interactive betting sites, has boosted the online betting practices, making new people offer their services and engaging those who were already content. The same trend will persist to shape the market advancement as technology advances and the platform environment becomes more complex.

" Growing Interest in Sports Wagering and Entertainment to Advance the Market"

Thoroughbred racing is a sport and also a source of entertainment and, foremost, a platform of sports betting. Competition, excitement of putting stakes, and feeling of community through race meetings or even in online applications make the market attractive. Subsequently, the expansion of sports betting all around the world and its growing legalisation and recognition across different jurisdictions have continued to drive more expansion in this market and, more often than not, in conjunction with general sports betting services. 

Restraining Factor

"Animal Rights to Pose Potential Impediments on this Market"

The Horse Racing Market share has also been grappling with major restraints, including the escalating concern towards animal rights as well as the ethics of the sport. Sustained concerns by animal rights organisations, this media coverage of injuries and death evoked by racing activities, and a growing concern in animal welfare have prompted the need for enhanced rules and better practice among racing organizations. Doubts are usually raised regarding the rigorous strain that racehorses are put through, the use of riding crops and other tools used in racing, and injuries resulting from high speeds and ground or track conditions. These issues have raised demands for improved clarity in racing techniques, enhanced veterinary supervision, and new ways of training and racing a horse.

Opportunity

"Legalisation of Sports Betting to Create Opportunity in this Market"

An appealing trend for this market can be attributed to the increase in the legalisation of sports betting and the inclusion of this racing within other sports betting services. More legalised online sports betting or the opening of physical ‘sportsbook’ shops also means more exposure for this racing since more markets are breaking barriers to offer these products. This racing as a secondary channel of betting and as an additional product to the already familiar and actively used applications and websites for betting on other popular sports. This cross-promotion may reach new audiences that were never in the sport before or that never considered it. 

Challenge

"Other Entertainment to Pose Potential Challenge for this Market"

The major threat facing this market is the rising competition from other market segments, such as other entertainment and betting industries. Today’s customer faces a myriad of possible products to use while having leisure time, as well as numerous choices of where to place a bet. The current popularity of online casinos, e-sports betting, and fantasy sports, as well as various types of sports betting, makes the entertainment dollar a very hotly contested market. Such improved options seem to enhance convenience, accessibility, and diversified specialisation over and above what mere horse racing offers. For instance, in the case of online casinos, there are always games as well as betting options available to users all the time; esports offer young people an exciting experience. They argue that this extent of competition hampers this industry’s ability to create new followership, keep the existing one engaged, and ensure the industry consistently captures its market niche.

HORSE RACING MARKET REGIONAL INSIGHTS

• North America

North America is an integral part of this market and has a long history and is positioned as an important centre hosting many important horse racing events such as the Kentucky Derby, Preakness Stakes, and Belmont Stakes, which are summed up as the Triple Crown. These events attract unimaginable traffic and publicity, forming a major part of the market’s income and societies’ interest. The aspect of Thoroughbred racing is well developed in the USA, with a developed system of breeding and a large number of racetracks throughout the country. But the United States Horse Racing Market has also been struggling over the years with low patronage in some of the tracks and stiff competition from other betting systems. 

• Europe

Europe can really be said to have embraced this racing, given that it has historical roots and different countries, like the United Kingdom, Ireland, France, and Italy, to mention but a few, have made the sport popular. The United Kingdom is acknowledged to have originated modern Thoroughbred racing, Royal Ascot, as well as the Grand National. The European market can be defined by such types of races as flat racing, National Hunt (jumps) racing, and trotting races. Gaming is part of the European tradition, and this racing has always remained a popular form of betting. The European market is considered to have high levels of horse protection and numerous state rules. 

•  Asia

The Asian market is growing fast, especially in regions such as the Far East; this includes Japan, Hong Kong, and Australia, which are often included in the Asian market. Japan has a healthy racing industry offering quality races and a good number of rewards to the winners. Hong Kong has one of the largest bet turnovers and an extensive fan base when it comes to this racing. Australia celebrates horse racing as among the most popular racing activities that are held in the country, including the Melbourne Cup. The Asia market presents a significant focus on betting systems and increasing concern on the relevant international racing. Another characteristic of this market is the usage of high technologies and digital platforms. 

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Investing in Infrastructures"

The role and activities of various market stakeholders play a great role in the determination of this market. Some of them own or control racetracks where they organise races and make revenues from ticket sales, food and beverage, as well as betting. They do control the market with respect to providing schedules of various races, deciding on the condition of various tracks, and investing in the infrastructures. Owners spend their money to buy and educate their zoo animals, or racers, as is the case with racehorses; on the other hand, breeders are the ones who are supposed to be preparing the next generation of racers. They impact the market through the selection made on the breeding, the quality of horses produced, and the races they take. The application of trainers is to train horses for races while riders ride the horses during races. Their ability and special knowledge affect the races’ consequences and affect the bets. They provide services in relation to accepting bets and determining and offering odds for this racing. They manage to affect the market through the number of stakes offered on it, advertising races, and generally providing for the formation of bets.

LIST OF TOP HORSE RACING COMPANIES

• Godolphin (Dubai)
• BET365 (U.K.)
• 888SPORT (Gibraltar)
• The Arabian Jockey Club (UAE)
• Zed Run (Decentraland)

KEY INDUSTRY DEVELOPMENTS

February 2024: Coming as TwinSpires Lottery in February 2024, it has been developed into a new dynamic mobile application affording users in Kentucky a platform for playing various lottery games and buying lottery tickets online. This brought a notable increase for TwinSpires, CDI’s online betting website, which was already one of the key players in the online horse racing betting market. TwinSpires decided to add lottery games to its services to reach more clients and to leverage the steady increase in the online gambling sector. 

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

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