Horse racing has been a popular sport for centuries, with its roots traceable back to ancient Greece. Today, it is an important part of the economy. In the United States alone, the horse racing industry is estimated to have an economic impact of $38.2 billion. But how much is horse racing worth to the economy? This article will explore the economic contribution of horse racing, looking at the economic impact of both racing itself and the breeding of horses.
Economic Impact of Horse Racing
Horse racing has a significant economic impact. It supports thousands of jobs and generates billions of dollars in revenue. A 2009 study conducted by the University of Louisville estimated that the Kentucky horse racing industry has an economic impact of $3.9 billion and supports over 28,000 jobs.
The economic impact of horse racing is felt in many ways. The most obvious is the direct revenue generated by the events themselves. According to the American Horse Council, the horse racing industry generates $2.5 billion in wagers each year. This money is then used to pay purses and other expenses associated with the race.
In addition to direct revenue, horse racing also has an indirect economic impact. Racehorse owners and trainers often purchase goods and services from local businesses such as feed stores, farriers, and veterinarians. The American Horse Council estimates that the industry contributes $2.1 billion to the economy through indirect spending.
The breeding of horses also has an important economic impact. According to the American Horse Council, the sale of horses generates $3.3 billion in revenue each year. This money is then used to purchase feed, supplies, and services from local businesses.
Economic Benefits of Horse Racing
Horse racing has many economic benefits. It is estimated that the horse racing industry contributes $38.2 billion to the economy each year. This money is then used to create jobs, generate revenue, and support local businesses. Here are some of the economic benefits of horse racing:
Job Creation
Horse racing is a major employer, supporting thousands of jobs across the country. This includes jockeys, trainers, owners, grooms, and other support personnel. According to the American Horse Council, the horse racing industry is estimated to have created over 85,000 jobs in the United States.
Revenue Generation
Horse racing is an important source of revenue. The direct revenue generated by the events themselves is estimated to be $2.5 billion per year. This money is then used to pay purses and other expenses associated with the race. In addition, the sale of horses generates $3.3 billion in revenue each year.
Supports Local Businesses
Horse racing supports local businesses, such as feed stores, farriers, veterinarians, and more. The American Horse Council estimates that the industry contributes $2.1 billion to the economy through indirect spending.
The Impact of Horse Racing on the Tourism Industry
Horse racing is an important part of the tourism industry. It attracts thousands of visitors to the tracks each year, generating revenue for the local economy. According to the American Horse Council, horse racing events draw an estimated $3 billion in tourism each year.
Conclusion
Horse racing is an important part of the economy. It supports thousands of jobs and generates billions of dollars in revenue each year. The direct and indirect economic impact of horse racing is estimated to be $38.2 billion annually. In addition, horse racing has a significant impact on the tourism industry, drawing an estimated $3 billion in tourism each year. All in all, horse racing is an important part of the economy and is worth a great deal to the economy.
Sources
- American Horse Council: https://www.horsecouncil.org/industry-statistics/economic-impact/
- University of Louisville: https://louisville.edu/business/research/cber/publications/economic-impact-of-horse-racing-in-kentucky.html