Horse racing used to have a legal monopoly on gambling in the United States to support the breeding industry, but as new forms of gambling emerged, the sport’s bottom line and cultural significance declined. Despite this, the Kentucky Derby continues to attract record-breaking wagering and viewership numbers, making it the pride of Churchill Downs Incorporated. The company has expanded into gaming venues and online sports betting to diversify its revenue streams.
The decline in horse racing engagement in the U.S. has been attributed to the rise of other forms of gambling, such as sports betting, which has seen significant growth in recent years. Wagering on horses has decreased, leading to a decline in attendance, number of races, and foal crop in the industry. However, the Kentucky Derby remains a popular and profitable event, setting records for betting and viewership.
Churchill Downs Incorporated has adapted to the changing gambling landscape by expanding into brick-and-mortar gaming venues and online sports betting. The company’s revenue has become less reliant on Derby Week earnings, with the introduction of Historical Horse Racing machines at Derby City Gaming contributing significantly to its overall revenue. Despite the challenges facing the horse racing industry, Kentucky’s thriving racing scene, fueled by HHR machines and prominent events like the Kentucky Derby, has helped sustain the sport in the state.
