Dollars & Sense: Strength in Racing’s Job Numbers

As I walked the backstretch Kentucky Derby week at Churchill Downs, I fortuitously bumped into a Kentucky Equine Education Project initiative that brought a group of state lawmakers to the backstretch.

Asked to sum up the success of the pari-mutuel historical horse racing games that have brought added money to Kentucky racing and breeding, I mentioned this industry helping Kentucky be recognized around the world, the green space that this agricultural pursuit provides, and the tourism it draws. But I was never far from the main benefit: jobs.

It’s a massive selling point for the racing and breeding industry that again is hammered home by the American Horse Council’s 2023 Economic Impact Study of the United States Horse Industry. As I noted that morning, traditional casino gaming may bring a certain amount of money to state coffers—HHR does as well—but unlike casinos, our industry carries a massive employment impact.

As the AHC wrote in its entry on race horses—and as every owner and breeder knows—race horses require substantial expenditures on breeding, maintenance, and training. Additional fees while a horse is in training include the costs of insurance, veterinarians, farriers, and jockey fees. There are transportation fees between racetracks and farms and boarding fees when the horse is not in training. Race horses also require specialized feed and supplies. The racing sector also involves large indirect expenditures to specialized service providers. 

While every participant has probably wished for an easier way, especially when the bills show up, it’s an investment they’re willing to make with hopes that purses can help reward the investment. Good news for the racing industry overall is that all of those fees are tied to jobs. 

The AHC numbers tell that impressive story. The racing sector (the majority is Thoroughbred racing but other breeds also are included) supports more than 312,000 direct jobs and adds $16 billion in direct value to the national economy. These direct impacts drive a further $20 billion in added value to the economy and nearly 179,000 jobs from indirect and induced efforts.

It’s been great to see groups such as the California Horse Power Coalition and SaddleUpNY! promote numbers from the AHC study, as well as their own, in efforts to educate the public. CHPC reported that the equine ecosystem (racing and non-racing) provided a total of $11.6 billion to California’s economy and a direct contribution of $6.5 billion to state GDP while SaddleUpNY! reports that just the Thoroughbred and Standardbred racing sectors in the Empire State bring an economic impact of $3 billion and employment impact of 19,785.

“The Economic Impact Study is the most effective tool in our advocacy quiver,” says Julie Broadway, president of the AHC. “When the industry needs to take aim at an issue, this data is invaluable in helping us paint the picture of the contributions the industry makes and the breadth and depth of its composition.”