Handle continues solid gains in second quarter

Wagering on races held at U.S. racetracks during the second quarter of 2018 was up 4.76 percent despite a drop of nearly 2.1 percent in the number of races held, according to figures released Thursday by Equibase. The latest uptick follows a 6.2 percent increase in wagering during the first quarter, which was the best three-month showing for handle figures in the economically challenged racing industry for some time.

Year-on-year handle in the U.S. is up 5.56 percent, with $5.87 billion wagered through June 30, compared to $5.56 billion in 2017.

Wagering during the second quarter this year was nearly $3.24 billion, up $155 million over the second-quarter number in 2017, according to the figures.

Purses totaled more than $290 million during the second quarter, up 2.2 percent from last year, according to Equibase. The average purse was $28,743 per race, up 4.3 percent over the second-quarter figure in 2017. For the first quarter of 2018, purses averaged $30,848 per race, an all-time record and an increase of 9.5 percent over the comparable period.

Average field size during the second quarter of 2018 was down marginally, from 7.46 last year to 7.42.

For June 2018 alone, handle totaled nearly $1.07 billion, up $133 million over June 2017 for a substantial increase of 14.3 percent, according to Equibase. The number of races (3,958) held during June 2018 was up 2.4 percent over last June.

Annual handle figures for U.S. races have been stagnant for five years, with little movement as the industry wrestles with increasing competition, a static fan base, and stubborn declines in field size, foal crops, and the number of races held. But the industry has been buoyed by hundreds of millions of dollars in casino subsidies flowing annually to both racetrack operators and horsemen, leading to the highest per-race purse figures in racing history, even as handle remained stuck in neutral.

The first-quarter surge in wagering coincided with predictions by many racing officials that handle would begin to increase in early 2018 because of tax-rule changes implemented last fall that are highly beneficial to horseplayers.

– additional reporting by Matt Hegarty