Horse racing generates billions of dollars in revenue each year. It stands to reason that someone is profiting from all of that money. EZ Horse Betting is often asked, “Is horse racing profitable?” The answer is yes, but for some more than others. Here’s a closer look at the different groups of people who make money at the race track.
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The Owners of Racing Venues Profit From Racing
There is no getting around the fact that horse racing is a business. That means it is operated by some entity that has to make a profit to survive. The owners and operators of race tracks profit from horse racing perhaps more than any other group. They are at the top of the food chain in the racing industry.
The Stronach Group is probably the best known racing venue owner in the world. It owns race tracks such as Gulfstream Park and Santa Anita Park as well as betting platforms like Xpressbet. Through these businesses the Stronach Group makes millions of dollars each year.
Racing is Profitable for Some Horse Owners
Horse owners that are fortunate enough to own talented horses can also profit from horse racing. Contrary to what some people think, making money with a horse isn’t as easy as buying one and putting it in a race. The horse has to have talent, be trained by a good trainer, and attract the services of a winning jockey.
The owner with just one or two claiming horses can find it very hard to make a living from horse racing. The claiming purses at many smaller circuits are low. A horse also cannot be expected to win every time it enters a race. It may not even win one out of every four tries. Such is the case for many a small-time horse trainer.
The super owners with stables of 20, 30, or more horses usually place themselves in a place to make a profit. These owners have very talented race horses and pay lots of money for the top trainers in the business. For them, it is indeed profitable to be involved in horse racing.
Trainers, Jockeys, and other Industry People Make a Profit
The trainers, jockeys, and other people who work in the horse racing industry also make a profit from their labors. In the case of jockeys, those profits are directly related to a rider’s winning percentage. Jockeys get paid a portion of the winning purse if they finish in the top three or five of a race. If they finish out of the money the reward is just a token sum that could be as low as $50. That might help you to understand why jockeys want to win their races.
A trainer is paid a day rate to train horses for an owner. This rate is usually determined by the skills of the trainer. The better trainers will demand the highest day rates. A day rate with a winning trainer can easily exceed $100. The trainer is also responsible for paying grooms, hotwalkers and other personnel.
The stewards who are responsible for overseeing the racing at the race track also get paid for their services. So do the entry clerks, placing judges, and other employees.
Profits for the Horse Race Bettor
Now we are going to talk about what you really want to know. Is horse racing profitable for the bettor? We started by showing you all the ways money can be earned from horse racing that do not involve winning bets. Why? Because we wanted to make a point that the only sure way to profit from horse racing is to work in the business.
Betting on horses can be profitable, but it should never be regarded as a sure thing. If you work very hard and improve your handicapping skills you may reach a level where you can make a small profit. To do it for a living you will need much experience betting on horses and studying race charts, past performances, and race replays.
Our recommendation would be to hone your skills as a handicapper by using an online racebook. You can bet on tracks all across the country and even overseas. It is possible to bet on horse races in Australia and Hong Kong from the comfort of your own home when you use one of the online racebooks that we recommend such as Bovada, Twinspires, or Betamerica.