There are few more commercially successful sectors than horse racing. The sport has the power to reach a mainstream audience throughout a calendar year, with signature events such as the Kentucky Derby and Cheltenham Festival being watched by global audiences.
Therefore, it is no surprise that followers of the sport sometimes look to invest in stocks within the industry. As mentioned, the sector is incredibly lucrative, with the U.S. industry being reportedly worth a staggering $177 billion, and it brings in $36 billion to the economy annually.
As well as this, it supports and creates thousands of jobs across the U.S, with the betting industry also flourishing, with $11.6 billion wagered on major racing action throughout a year.
How to Invest
Many of the world’s biggest horse racing stocks and publicly traded gambling platforms are available for followers to invest in, with the majority found on the New York Stock Exchange.
However, the value of each stock will be dependent on the brand, and how well they are currently performing. Some sportsbooks will only be available on the NYSE platform, while other may be available at the NASDAQ Composite platform.
Given the success that the sport, and gambling platforms, has achieved in recent memory, it is unlikely that a quick profit will be made from making an investment. Instead, traders may be required to research new and exciting opportunities, with companies typically looking to break into the sector on a regular basis.
But, as is the case with most things, bettors will already have their preferred option, and it is typically difficult to sway their opinion despite an emerging name in the industry.
Most Popular Publicly Traded Companies
Churchill Downs Incorporated
Undeniably, one of the leading companies within the racing industry comes in the form of Churchill Downs Incorporated.
The name is synonymous with the sport, largely due to operating many of the leading tracks across the United States. Most famous of those is Churchill Downs, which plays host to the Kentucky Derby annually.
As well as potentially the most famous racing venue, Churchill Downs Inc also owns other leading racetracks in the U.S., including Colonial Downs, Ellis Park, Fair Grounds, and Turfway Park. Its status as the leader in the U.S. is cemented due to its connection with TwinSpires and United Tote.
Flutter Entertainment
One of the biggest betting gambling companies on the planet is Flutter Entertainment, with its biggest footprint being in the United Kingdom and Ireland.
The deal to form Flutter was announced after Paddy Power and Betfair were merged in September 2015.
One of the most famous early stories of the brand came in October 2016, as the sportsbooks associated with Flutter reportedly paid out over $1.1 million on the U.S. Election following Donald Trump’s shock win.
Penn Entertainment Inc
Another of the biggest American entertainment and gambling companies comes in the form of Penn Entertainment INC.
This company has been floated on NASDAQ throughout its history, and it is one of the most reputable horse racing companies with some of the biggest racecourses in North America owned by the company.
Among those include Hollywood Casino, Freehold Raceway, and Sam Houston Race Park. Penn Entertainment also manages a number of the leading casinos across the U.S.
Key Trends Impacting Sector
There have been sweeping changes to the industry in the modern era, and those have continued in recent years.
One of the key trends that has been evident is the shift in advance deposit wagering, which allows customers to bet remotely. However, before any investment is made on a company, it is always important to assess the growth potential.
Legacy gambling firms will always achieve success, but fresh names to the sector could struggle to gain traction via customer sign ups, relying heavily on their technological services instead.
How Do Racing Fans ‘Invest’ In the Sport?
The vast majority of avid racing fans will instead look for different opportunities to invest in the sport that they love, and one of the most common ways comes in the form of racehorse ownership.
This can come in a variety of different ways, with the most cost-affordable option coming via syndicates. Here, a number of people will own shares in one horse, taking advantage of the perks offered when owning a racehorse, such as owners’ badges for a day at the races and a percentage of the winnings. Unlike being an outright owner, joining a syndicate is considerably cheaper, enabling passionate fans to get involved in the sports regardless of how deep their pockets are.
Racing Clubs are also popular, but these are often even cheaper to join. In turn, owners’ badges work on a ballot process, meaning that you won’t be able to attend every race day.
