Few Positives in 2014 Economic Indicators
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According to the Thoroughbred Racing Economic Indicators released Jan. 5 by Equibase, commingled pari-mutuel handle on United States races declined 2.84% in 2014, marking the seventh time in eight years that fewer dollars have been wagered.
The $10,552,214,930 wagered on U.S. races in 2014 is the lowest single-season total since 1995, when $10.43 billion was bet. Compared with the $14.78 billion wagered on U.S. races in 2006, handle in 2014 was down 28.6%.
While the handle decline may reflect reduced interest in pari-mutuel wagering, this year it appears to be more strongly tied to a reduction in U.S. races. With racing facing a shortage of horses because of reduced foal crops in recent years, bettors had fewer events—and individual horses—to wager on in 2014.
The number of U.S. races in 2014 compared with 2013 declined 4.31% to 41,277. The number of U.S. starts declined at a greater rate, down 6.25% to 318,246.
Those two numbers mean the average field size dropped from 7.87 horses in 2013 to 7.71 horses in 2014. The field size decline also would impact handle as studies have shown that larger fields generate more wagering than smaller fields.
With the decline in races and starters outpacing the decline in pari-mutuel handle, per-race wagering actually increased 1.53% in 2014 to $255,644.
The reduced number of races and wagering also factor in the 1.37% decline in U.S. purses to $1,111,767,029.
December proved to be an especially difficult month for the industry as U.S. races were down 11.58% to 2,427, pari-mutuel handle on U.S. races fell 9.07% to $642.2 million, and purses dropped 12.43% to $58.26 million.
Thoroughbred Racing Economic Indicators
Year-End 2014
| YTD 2014 vs. YTD 2013 | |||
| Indicator | YTD 2014 | YTD 2013 | % Change |
| Wagering on U.S. Races* | $10,552,214,930 | $10,860,918,711 | -2.84% |
| U.S. Purses | $1,111,767,029 | $1,127,221,156 | -1.37% |
| U.S. Race Days | 4,973 | 5,114 | -2.76% |
| U.S. Races | 41,277 | 43,135 | -4.31% |
| U.S. Starts | 318,246 | 339,462 | -6.25% |
| December 2014 vs. December 2013 | |||
| Indicator | YTD 2014 | YTD 2013 | % Change |
| Wagering on U.S. Races* | $642,243,496 | $706,303,954 | -9.07% |
| U.S. Purses | $58,260,685 | $66,530,394 | -12.43% |
| U.S. Race Days | 287 | 323 | -11.15% |
| U.S. Races | 2,427 | 2,745 | -11.58% |
| U.S. Starts | 20,634 | 22,847 | -9.69% |
* Includes worldwide commingled wagering on U.S. races.