U.S. HANDLE FALLS IN MAY; YEAR-END COULD BE LOWEST SINCE ‘96
Betting on American Thoroughbred racing continued its downward slide in May, dropping 8.26%, from $1.5 million in 2008 to just under $1.4 billion in 2009. There were 31 fewer U.S. racing days this May compared with May 2008, a number that is expected to fall even farther as tracks like Hollywood Park and Churchill Downs reduce from five days a week to four.
Purses also fell again in May, dropping by 6.73%.
There were 10 weekend days plus the Memorial Day holiday in May of 2009, compared with nine weekend days and Memorial day in 2008. Handle is higher on weekends and holidays than on normal weekdays.
Year-to-date figures are down 9.22% in handle, and 5.54% in purses despite a less than 1% drop in total racing days. With more wagering dollars continuing to shift from on-track to off-track or account wagering, a smaller percentage of each dollar bet goes toward purses. Subsidies from casino wagering and slot machines at tracks (racinos) have kept purses from falling at the same rate as the decline in handle.
The U.S. racing industry is almost certain to suffer year-end wagering declines for the fifth time in the last six years. At the current rate of decline, year-end handle will be just under $12.5 billion, the lowest total since 1996. (Click here to see the historical trend.)
Statistics are from Equibase.
|
Indicator
|
May 2009
|
May 2008
|
% Change
|
|
Wagering on U.S. Races*
|
$1,375,229,442
|
$1,499,103,122
|
-8.26%
|
|
U.S. Purses
|
$105,106,967
|
$112,695,212
|
-6.73%
|
|
U.S. Race Days
|
598
|
629
|
-4.93%
|
|
Indicator
|
YTD 2009
|
YTD 2008
|
% Change
|
|
Wagering on U.S. Races*
|
$5,510,415,896
|
$6,069,837,619
|
-9.22%
|
|
U.S. Purses
|
$403,346,939
|
$427,010,362
|
-5.54%
|
|
U.S. Race Days
|
2,194
|
2,216
|
-0.99%
|
* Includes worldwide commingled wagering on U.S. races.
Copyright © 2009, The Paulick Report
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Tags: betting turnover, economic indicators, equibase, handle, horse race betting, Horse Racing, horse racing declines, pari-mutuel handle, Paulick Report, Ray Paulick, u.s. handle
June 4th, 2009 at 12:22 pm
Ray Paulick wrote:
Subsidies from casino wagering and slot machines at tracks (racinos)
have kept purses from falling at the same rate as the decline in handle.
_______________________________
Regarding the 9.22% decline in all-sources handle.
It do not think that tells the full story. Surely several racetracks have done well this year.
Is it possible to separate the wheat from the chaffe to get a better reading?
There are racetracks that put out a solid product and deserve to be praised.
I will be standing by to pat them on their back when the data is presented.
June 4th, 2009 at 3:20 pm
I recognize that KY needs VLTs, but even though subsidies from casio wagering are saving purses, the $$$ needs to be bet on the horses, not the lights!
VLTs are a necessary band-aid, not a long term solution.