February betting figures show handle decline in U.S. for second straight month

For the second straight month, total handle on U.S. Thoroughbred races in February declined despite a gain in the number of races held, according to figures released by Equibase on Monday, a trend that is signaling a decline in demand for betting on horse races nationwide.

The February drop of 5.2 percent came on the heels of a 7.2 percent decline in January, even though U.S. racetracks held more races in the first two months of the year compared to the first two months of 2022. Handle began stagnating on U.S. horse races late in 2022, after several years of surprising growth during the pandemic, especially when considering the average amount of wagering per race.

In February, the number of races held was up 3.2 percent compared to the same month last year, but that increase only drove down the average per race, considering the overall decline in handle. For the month, average wagering per race was $387,495, a decline of 8.9 percent compared to the figure of $421,854 last year.

Average wagering per race in January declined 11 percent compared to the same figure in January last year.

Still, there were some factors predicting declines in handle in February, most significantly in California, where a slate of cards were canceled in February due to heavy rains. California is one of the most heavily bet U.S. circuits during the winter. In Texas and Nebraska, two minor tracks are not sending their signals out of state due to concerns over the jurisdiction of the Horseracing Integrity and Safety Authority.

Still, purses distributed during the month rose 7.1 percent, to an average per race of $36,439, largely due to a surge in subsidies from casino gambling in Kentucky and Arkansas.

The declines in horse-race betting are occurring against a backdrop of a rapid expansion in the availability of sports wagering in many U.S. states. The competition among sports-gambling operators has led those businesses to offer lucrative sign-up bonuses, which may be siphoning attention away from racing.

Average field size in February was even with the average last year at 7.58, according to the figures.

In total, $863.34 million was bet on U.S. races in February, compared to $910.78 million in February of 2022.

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