Cancellations cause 10.8 percent handle drop in January

A wave of cancellations due to a prolonged cold snap hitting the Midwest and East Coast in mid-January caused handle on U.S. Thoroughbred races in the month to plunge 10.8 percent, even though average handle per race jumped a robust 9.8 percent, according to figures distributed by Equibase on Monday.

Due to the cancellations, the number of race days held during January dropped 18.1 percent, from 265 in January of last year to 217 this year, while the number of races dropped 18.7 percent. Because of the much higher drop in races relative to the decline in total handle during the month, average handle per race in January jumped from $383,264 last year to $420,863 this year.

In total, $779.86 million was bet on U.S. races in January, down from $873.84 billion in January last year.

The total amount of purses paid out in the month also dropped by double digits, but the decline was less steep than the decline in number of races. As a result, while total purses paid out dropped 14.9 percent, the average purse per race increased 4.7 percent, to $39,733.

Purses at U.S. tracks are heavily subsidized by payments from casinos.

The increase in average betting figures and purses in January continued a trend that began in November of last year. In that month, the average betting per race jumped 7.5 percent, despite a slight decline in total handle, while in December, the average betting per race increased 6.6 percent.

The average field size in January rose slightly, by 1.68 percent, from 7.73 horses per race in January of last year to 7.86 horses this year.