Handle soars in September – with a caveat

Wagering on U.S. races in September soared 11.9 percent compared with September 2014 even as the number of races held during the month declined nearly 3 percent, according to figures released on Monday by Equibase.

Although the figures seem to indicate a striking reversal in fortune for horse racing, the comparison between the two months is muddied by the difference in the dates for Labor Day, the first Monday of September. Last year, Labor Day was Sept. 1, while this year, Labor Day was Sept. 7. Because Saratoga Race Course and Del Mar peg their closings to the holiday, the two popular meets offered racing for a longer time during September than during the same month last year, driving handle totals up this year.

Both months had eight weekend dates plus the holiday. Handle is generally higher on weekends and holidays than on weekdays.

Still, the nearly 12 percent betting jump was the largest single gain in month-to-month wagering since February 2012, when wagering jumped 7.6 percent. Only an 18 percent jump in wagering in December 2011 has been larger since Equibase began releasing monthly figures in 2009, and that increase was attributable to multiple factors other than a rise in demand for horse racing.

Handle during September was $776.3 million, compared with $693.7 million last September. The number of races fell from 3,706 last September to 3,598 this September. Average handle per race during the month was up 15.3 percent, to $215,750, compared with the same month last year.

Wagering did show some organic growth in the third quarter, with betting on U.S. races up 3.7 percent despite a 3.8 percent drop in the number of races held. Races held at U.S. tracks have been declining for more than a year as racetracks cut racing opportunities in order to deal with a precipitous decline in the foal crop from 2010-12.

Purses distributed during the month were $112.2 million, compared with $104.7 million last September. In addition to the higher number of dates for Saratoga and Del Mar during September this year, Parx racing changed its racing schedule this year to concentrate a large amount of its available purse money in races run during September and October. Purses at Parx, as at many tracks in the U.S., are heavily subsidized by casino revenue.

For the year, handle on U.S. races is up 0.9 percent, while races have fallen 5.1 percent, according to Equibase.