Racing Sees Bump in Overall Handle in June

Like all sports, racing is facing challenges because of the COVID-19 pandemic, but with extensive coverage on national television, fans are finding the sport.

Those fans wagered nearly $1 billion on available racing in June 2020 as handle for the month actually was up 0.76% to $998,448,300 when compared with June 2019. That bump in handle occurred despite a near 40% reduction in race days to 300. While race dates have been lost as tracks adjust to COVID-19 restrictions, fans are supporting available racing as average wagering per race day jumped 68% in June to $3,328,161. 

The available racing product is an upgrade for fans as tracks have spread out their schedules to fill available days—like Monday, Tuesday, and Wednesday cards. And, a reduction in racing opportunities has helped increase average field size, up 14% in June to 8.11 starters.

The National Thoroughbred Racing Association president and CEO Alex Waldrop said that while the industry will face many challenges in the months ahead, it was good to see race wagering finish up in June.

"A slight year-over-year increase in handle for June does not reflect a trend but it is a positive sign in what is otherwise a negative report for the second quarter and year-to-date economic indicators. It is noteworthy that this small June increase in wagering comes despite 39% fewer race days and 36% fewer races, reflecting a significant 67% increase in wagering per race day," Waldrop said. "No doubt, the increase in field size to 8.11 horses per race in June over last June's 7.1 horses per race was a positive contributor to this increase as was pent up demand for wagering on racing coupled with the absence of other major league sports on which to wager.

"Unfortunately, purses remain way down for the month and the year and probably will remain so until business picks up and more casinos around the country re-open."

With Kentucky Derby Day—easily racing's biggest day of the year in terms of wagering—being moved from the first Saturday in May to the first Saturday in September and Preakness Day being moved from May to October, second quarter wagering was down 19% to $2.55 billion when compared with the second quarter last year. Still, fans supported available racing as handle per race day more than doubled to $5,012,505 compared with the same quarter of 2019.

Belmont Park was able to present Belmont Stakes Day in June, although fans were not permitted and the race day schedule saw some significant changes—for instance, the Runhappy Metropolitan Handicap (G1) was moved to July 4. Wagering for the day was down 34% to $67.7 million. New York Racing Association president and CEO Dave O'Rourke said this season is about keeping the sport going.

"We all have to pitch in and do what we can to keep the industry going and then once we get to next year, we can get back to tradition and have people on-track," O'Rourke said. "For now, this is a year of adapting."

Churchill Downs, which wrapped up its meet June 28, reported a 53% increase in handle to $240.5 million for the 27-date spring meet this year compared to 32 race dates offered in the 2019 spring meet after Derby week last year.

"In the midst of an unprecedented pandemic, we can't thank our horsemen and horseplayers enough for their continued support and enthusiastic response throughout the spring meet," said Churchill Downs racetrack president Kevin Flanery. "Our team worked tirelessly with public health officials and our horsemen navigated through uncharted territory to deliver an important economic driver in a safe environment for thousands of individuals in the Commonwealth.

"I couldn't be more proud of our staff and everyone who made the season possible. It was, however, an incredibly unusual season without fans in the stands, and they were greatly missed. We very much look forward to welcoming them back to Churchill Downs for Kentucky Derby Week in September."

The bump in overall handle and handle per race day is impressive as most tracks in June were not allowing fans. Nearly all of the handle was generated through advance-deposit wagering outlets.

While those outlets have allowed the sport to move forward without on-track fans, or limited on-track fans, the ADW business model generally does not generate as much money for purses. That could prove a challenge down the road as purse funds that receive money from added-gaming will take a hit because of closed casinos and limited attendance in the casinos that have reopened.

Horsemen are facing challenges as well because of the reduced racing. Purses for the second quarter were down 62% to $118.9 million and the year-to-date purses are off 40%, down to $324.2 million. Those numbers correspond to a 58% reduction in races for the second quarter and 38% reduction in races for the first six months of the year.

Thoroughbred Racing Economic Indicators

For June/Second Quarter 2020

* Includes worldwide commingled wagering on U.S. races.