Cold to trot: Competition from casinos and lotteries has hurt profitability

IBISWorld’s Industry Market Report on Horse Racing Tracks is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.


Industry Threats & Opportunities

  • Alternative gambling activities available to younger generations will hurt the industry
  • Many tracks have recently closed or will likely be shut down soon
  • Operators are increasingly investing in racinos, a blend of racing tracks and casinos

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    Industry Analysis & Industry Trends

    In line with a long-term decline, the Horse Racing Tracks industry has been outpaced over the past five years. Industry demand is increasingly being eroded as competing leisure and gambling activities progressively outcompete horse racing tracks in attracting customers. Low employment and per capita disposable income have led to a reduction in discretionary consumer spending, including at industry establishments. The Horse Racing Tracks industry is expected to continue to decline over the five years to 2022, albeit at a slower rate than the past five years. Growth in the US economy is expected to increase disposable incomes, spurring increased consumer discretionary spending, including on horse racing...

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    Industry Report - Industry Key Buyers Chapter

    The Horse Racing Tracks industry has a moderate level of market share concentration, with the industry's four largest companies controlling an estimated 36.8% of overall industry revenue. The majority of industry operators own a single horse racing track, having been granted a license to operate from the state in which the track is located. State governments also tend to have substantial level of influence in the way in which these tracks are operated, and sometimes also provide these tracks with direct subsidies or other forms of funding. Other operators, such as the New York Racing Association, operate in this manner, but control multiple race tracks. Fin..

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    Additional Insights for the Horse Racing Tracks Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Horse Racing Tracks Industry are

  • Ability to expand and curtail operations rapidly in line with market demand
  • Appropriate climatic conditions
  • Effective product promotion
  • IBISWorld analysts also discuss how external factors such as External competition and Per capita disposable income in the Horse Racing Tracks industry impact industry performance..

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    Look under the hood?

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    Industry Products

    What is the Horse Racing Tracks Industry?

    Operators in this industry operate horse racing tracks. Industry services include on-track, off-track and simulcast betting, as well as other gambling activities and services.

    Industry Products
    On-track betting
    Off-track and simulcast betting
    Industry Activities
    Thoroughbred horse racing
    Standardbred horse racing
    Video slot machine gaming
    On-track wagering
    Off-track wagering
    Horse boarding

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • External competition
  • Per capita disposable income
  • Number of adults aged 50 and older
  • Time spent on leisure and sports

  • Current Performance
  • Long-term decline in demand
  • Economic recovery offers little respite
  • Drug overuse eroding horse racing popularity
  • Declining number of horse tracks
  • Growth of racinos
  • Chart: Revenue Growth

  • Industry Outlook
  • Luring new spectators
  • Changing landscape
  • Table: Horse Racing Tracks Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Horse Racing Tracks Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Advertising Agencies
  • Beer Wholesaling
  • Computer Peripheral Manufacturing
  • Concert & Event Promotion
  • Wine & Spirits Wholesaling

  • Products & Services
  • Off-track and simulcast betting
  • On-track betting
  • Gaming
  • Other
  • Chart: Horse Racing Tracks Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 56 and older
  • Consumers aged 35 to 55
  • Consumers aged 34 and younger
  • Chart: Major Market Segmentation for the Horse Racing Tracks Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • General operating structure
  • Profit
  • Purchases
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Horse Racing Tracks

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Horse Racing Tracks Industry

  • Industry Globalization
    Major Companies
    Churchill Downs Inc.Stronach GroupThe New York Racing AssociationPenn National Gaming Inc.
  • Table: Churchill Downs Inc. - financial performance
  • Table: Stronach Group - financial performance
  • Table: The New York Racing Association - financial performance
  • Table: Penn National Gaming Inc. - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Horse Racing Tracks Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Horse Racing Tracks Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of Thoroughbred Races in the United States (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
  • The total amount wagered at a horse racing track during a given period, such as an event or a season.
  • Parimutuel Betting
  • A mutual betting system in which all bets are combined, the house's portion is removed and the earnings are split among the winners.
  • Purse
  • The total amount of cash prize given to the top finishers.
  • Racino
  • A combination of racing track and casino.
  • Satellite Simulcast Betting (Ssb)
  • A broadcast of a horse race which allows wagering at two or more sites, commonly involving centralized wagering, in which all bettors place bets into the same pool.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Horse Racing Tracks:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Horse Racing Tracks market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Horse Racing Tracks, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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