Guest Blog: The State of Racing

By Jordan Miller

For me, there are few things as special in life as attending the races; I couldn't agree more with the euphemism that a bad day at the track is better than a good day most everywhere else.  Unfortunately, it appears that my love for live racing places me in an ever shrinking constituency.  Even before the current recession, thoroughbred racing had been experiencing a steady quarter century decline in on-track attendance(for live racing).

Clearly, the decrease in on-track attendance for live racing reflects the decline in popularity of thoroughbred racing among the general public.  Today, thoroughbred racing is clinging desperately to a dying fanbase while trying to find some way to get new fans to the track for the first time and old fans to return.  Thus far, the industry as a whole has experienced infrequent and limited successes in this endeavor.  Since the decline in popularity of horse racing among the general population is, at least in part, cultural, is it even realistic to seek short-term solutions or expect an even moderate increase in on-track attendance in the near future?

While mainly a fan, I do recognize that betting is at the center of thoroughbred racing.  Ultimately, the industry not only needs more people to attend the races, it needs these people to wager more as well.  Yet, horse racing has never faced the competition for the wagering dollar from other forms of gambling like it does now.  Horse racing faces competition from casinos not just in Las Vegas and Atlantic City, but on Native American reservations, riverboats, and in most big cities, as well as card clubs, bingo halls, sportsbooks, on-line poker, on-line sportsbooks/wagering, state lotteries, etc(even day trading).  In such a competitive market, what options does horse racing have?

Even within the industry of thoroughbred racing there are centrifugal forces pulling folks away from the racetrack.  Rather than actually going to a track to watch and wager on live racing, a patron can instead go to an OTB, or a "dark" track for simulcast wagering, or even stay at home and do it all via the internet, with tracks losing the money that would have been spent on admission, parking, and food, not to mention betting.

In terms of gambling revenue, some may posit that it doesn't matter if the money is coming from people at the track(watching live racing), OTBs, simulcast wagering, sportsbooks, or internet accounts.  For these people, the location of the bet is irrelevant, all that matters is that the bet is being placed and the industry is making money.  I disagree, and believe that tracks and the industry as a whole do not maximize their profit-making potential when a patron is "off-track".  In other words, I think that central to any resurgence in thoroughbred racing is the effort to increase on-track attendance for live racing because it is the on-track patron that offers the industry the greatest potential for long-term revenue.

While I know that winning a bet is fun regardless of where the bet is placed, any fan of racing will attest that the simulcast or internet experience just does not do justice to the sport.  No, to fully experience horse racing, one must be at the track, watching and wagering live and in person.  There is an excitement and buzz at a track that cannot be fully transmitted through television cables, internet wires, or satellites.  The majesty and power of the horses, the skill and bravery of the jockeys, and the fascinating personalities of racegoers can only be fully experienced on track, live and in person.  Through the course of a race, as fans and bettors root their horse home, the individual becomes part of a shared collective experience. And as with other sporting events and entertainment gatherings, being a part of a larger social entity adds greater meaning to the experience. When in the presence of greatness, as those at Churchill Downs for the 09' Kentucky Oaks or those at Santa Anita for the 09' Breeder's Cup Classic were, the experience of a race can be transcendent, as the individual realizes he or she is part of something much bigger and more profound.  It is these experiences that create lifelong fans, these experiences that promote return visits and future wagers. 

I often find myself at the track wishing I could bottle what I feel so that others may share it and realize just how amazing the sport of horse racing can be. What do you as fans most cherish regarding the sport?  Is it the betting, the competition of the sport, the history, the tracks, the people, the emotional rollercoaster?  What are some of your favorite moments, the greatest horses you have seen in person, the greatest performances?  Can great horses, like a Triple Crown winner, and great performances really save the sport?

While attendance for live racing continues to nosedive for the industry as a whole, there are islands of success.  Of note, tracks like Saratoga, Del Mar, and Keeneland with their "boutique" meets are thriving, doing business comparable to the "golden days" of racing.  Another track achieving notable success in on-track attendance and wagering this year is Monmouth.  Perhaps it's simply that summer meets are more successful, given more people are off school and work, although this wouldn't explain why Keeneland's fall and spring meets do so well nor why other summer meets experience small, and decreasing crowds.  Perhaps it is a matter of location, with certain advantages coming to tracks on the Pacific Coast of Southern California(Del Mar), on the Jersey shore(Monmouth), in a resort area of central New York(Saratoga), or in the center of bluegrass country(Keeneland)?  Perhaps it's about the surrounding towns, their hotels, restaurants, bars, shops, and nightclubs?  Perhaps it's about tradition, and the fact that each of these tracks is still a culturally relevant sporting and entertainment option in their locales?  Perhaps it's the better purses at these tracks and that these larger purses draw more and better horses, and more and better horses lead to more attractive betting opportunities which, in turn, produce larger on-track crowds and increased wagering? Perhaps it's because most of these tracks offer relatively short meets, and when offered fewer racing dates the general public better appreciates those days when racing occurs, resulting in higher daily attendance and wagering?  Or, perhaps the ad/promotion departments of these tracks are doing something different from other tracks?  If so, what is it and will they share?

Ultimately, there are no simple answers or easy solutions.  The task of increasing on-track attendance for live racing is daunting, with trends running strongly negative for most tracks.  However, the task of increasing on-track attendance is one worth undertaking because ultimately it is only with an increase in on-track attendance that the industry as a whole can begin to turn around.    At least that's what I believe.  How about you?