U.S. handle drops 1.89 percent in third quarter

Wagering on U.S. races in the third quarter of this year declined 1.89 percent, a slightly higher rate of decline than a drop in the number of races, according to figures released Friday by Equibase, at a time when racing officials are closely watching handle numbers for evidence of attrition against a backdrop of intense criticism of the sport from some quarters.

Wagering in the quarter, which included the high-profile meets at Saratoga Race Course and Del Mar, fell from $2.98 billion last year to $2.92 billion this year. The number of races run during the quarter declined by 1.43 percent, from 11,257 last year to 11,096 this year. Average wagering per race fell 0.2 percent, to $263,780.

Despite those declines, total purses distributed at U.S. racetracks rose 4.9 percent during the quarter, while average purse per race day jumped 5.2 percent. Purses at U.S. racetracks are heavily subsidized by casino gambling revenues, and purses at Kentucky tracks have jumped noticeably over the past year due to the continued growth in revenues from historical horse racing machines at most of the state’s tracks.

Racing in the United States has been heavily criticized over the past six months due to rising concern over fatalities at racetracks and the industry’s practices and protocols related to equine safety. Those concerns, however, have largely been raised by organizations existentially opposed to racing, raising doubts about whether the criticism would have significant impacts on racing’s wagering numbers.

While the declines during the quarter were slight, and year-to-date figures also show a slight decline compared to the drop in number of races, September figures were down by 6.2 percent, according to Equibase. This year, Labor Day fell on Sept. 2, the first Monday of the month, and that could have had some impact on the numbers due to September figures typically including the entire three-day weekend. (Conversely, it likely helped August’s numbers.)

While the declines do not show any significant drop in business from the sport’s existing customers despite the often high-profile criticism, the figures also do not indicate that U.S. racing is coming close to recovering the ground it surrendered during a period of massive handle loss from 2003 to 2011, when handle declined 29 percent, from its high-water mark of $15.2 billion to $10.8 billion.

In addition, average field size continued to fall in the third quarter, with the average race drawing 7.28 horses, down 1.5 percent from 7.39 in the third quarter last year. Field size is one of the primary determinants of handle.

For the first nine months of the year, total wagering is down 2.78 percent, from $8.84 billion through the first three quarters of last year to $8.60 billion this year. Total purses are up 5.25 percent. Field size is down nearly 2 percent.