Horse racing has long been a staple of American culture, with online betting playing a key role in its continued presence. However, the industry faces questions about its future amid ethical concerns, changing consumer tastes, and the rise of alternative betting markets. At Horse.bet, we delved into the numbers and trends to explore whether horse betting online is a relic of the past or a thriving industry poised for growth.
Legal Landscape: Horse Betting in the USA
Horse betting remains legal in over 45 states, a testament to its long-standing roots in American sports culture. Operators have embraced this by offering both domestic and international markets, making it accessible to bettors nationwide. Despite a period when some operators pulled back from affiliate marketing, there’s optimism for a resurgence. Notably, the new partnership between DRF Bets and Catena Media, a gaming affiliate, signals renewed investment in targeting the right audiences. This collaboration underscores the industry’s belief in its growth potential, particularly in states like California, Florida, and Texas, where traditional online sports betting has yet to gain a legal foothold.
The Numbers Speak: Horse Betting vs. Online Sports Betting
Horse Betting Revenue
While specific revenue data for online horse betting is limited, it plays a significant role within the broader online sports betting market, especially in the U.S., which is projected to dominate global revenue figures.
Online Sports Betting Market
- Revenue Projections: The online sports betting market in the U.S. is projected to reach €10.49 billion in 2025 and grow at a 10.98% CAGR (2025-2028) to hit €14.34 billion by 2028.
- Users and Penetration: By 2028, the number of users in the market will reach 52 million, with user penetration climbing from 12.6% in 2025 to 15.0% in 2028.
- Average Revenue Per User (ARPU): ARPU is estimated at €245.60 in 2025.
In a global comparison, the U.S. leads the online sports betting market, highlighting its potential to support niche segments like horse racing.
Global Trends
Canada leads in user penetration for online sports betting, projected at 53.8% in 2025. Comparatively, the U.S. focuses more on revenue generation, with €10.49 billion forecasted in 2025, far outpacing other countries.
Ethical Concerns: A Shadow Over the Industry?
The public’s growing awareness of animal welfare has sparked debates about the ethics of horse racing. High-profile incidents involving horse deaths during training and races have prompted criticism, leading some to view horse racing as outdated or even in poor taste. These concerns could shape the industry’s future, pushing operators to adopt stricter animal welfare policies or risk losing public support.
Why Horse Betting is Positioned to Grow
Despite the challenges, the horse betting industry has unique advantages that suggest resilience and growth potential:
- Niche Appeal: Horse betting offers a specialized experience distinct from mainstream sports betting.
- Expanding Markets: States without legal online sports betting, like California, Florida, and Texas, represent untapped opportunities for horse betting operators.
- Innovative Partnerships: Collaborations like the one between DRF Bets and Catena Media indicate a strategic pivot towards modernizing and expanding reach.
Additionally, the broader online sports betting market is projected to reach $17.23 billion in revenue by 2025 in the U.S., with an 8.41% CAGR (2025-2029) leading to $23.80 billion by 2029. Horse betting, as part of this ecosystem, is likely to ride the wave of overall market growth.
Conclusion: Evolution Over Extinction, and Trends
While concerns about animal welfare and shifting consumer preferences cannot be ignored, the online horse betting industry is far from dying. Instead, it is evolving, leveraging its legal status, partnerships, and niche appeal to remain relevant. As the broader online sports betting market grows, so too will opportunities for horse betting, especially in underserved states.
At Horse.bet, we believe the future of horse betting lies in innovation and adaptability. By addressing ethical concerns and modernizing their offerings, operators can ensure horse racing remains a cornerstone of American betting culture.
The top 10 trends and figures related to online horse betting in the US:
- Overall Growth: Online horse betting has experienced steady growth nationwide, with mobile platforms contributing significantly to handle and revenue increases year-over-year.
- Top Performers: States like California, New York, and Kentucky consistently lead in total handle, thanks to their rich horse racing heritage and large populations.
- Revenue Growth Leaders: Florida and Texas have shown significant revenue growth due to expanded online platforms and greater participation in horse racing events.
- Emerging Markets: States like Arizona and Michigan, newer to online horse betting, are rapidly growing as they integrate online betting alongside existing gambling frameworks.
- Trends by Month: Handle tends to peak during major events like the Kentucky Derby, Preakness Stakes, and Breeders’ Cup, showcasing the sport’s seasonal popularity.
- Tax Revenue Contributions: States like Pennsylvania and New Jersey benefit from high tax revenue from online horse betting, supporting local budgets.
- Player Preferences: Mobile betting apps dominate, accounting for over 70% of total wagers, driven by convenience and accessibility.
- Hold Rate Trends: The average hold rate for online horse betting ranges between 15-20%, reflecting competitive odds and promotions aimed at player retention.
- Challenges: States with restrictive betting regulations, like Utah, see minimal or no revenue from horse betting, limiting growth potential.
- Future Outlook: Expansion into more states and tech advancements in live-streaming races and in-play betting are expected to drive further growth in the sector.
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