Economic Indicators: Wagering Down Slightly In May; Average Field Size Dips Below 7

With an identical number of race days and three fewer races from May 2021, wagering on U.S. races fell slightly in May as average field size dropped below 7 starters per race to 6.86. Pari-mutuel wagering experts consider field size to be a key factor in betting volume.

The $2 million drop in total monthly wagers represented a negligible decline of 0.15 percent but occurred despite record wagering on the Kentucky Derby. Wagers on the Derby day card from Churchill Downs totaled $273.8 million, which accounted for more than 19 percent of the U.S. monthly handle of $1,414,309,317 for May. Derby week handle, a record $391.8 million, represented nearly 28 percent of wagering market share for the month. Derby day wagering was up 17 percent from 2021 and Derby week wagers gained 25 percent from last year.

The May comparative wagering totals from  2021 did not include the $54.3 million bet on the Kentucky Oaks, which fell on April 30. This year's Oaks on May 6 handled a record $74.6 million.

By contrast, the Triple Crown's second leg, the Preakness, saw an $8 million decline in wagering on the day, according to Equibase charts, from $112,504,508 in 2021 to $104,330,988, after Derby winner Rich Strike skipped the race. Preakness day wagering accounted for 8 percent of U.S. bets in May.

Field size is a concern at virtually every racing circuit. Year to date, the average field size is 7.33, a decline of 3 percent from 7.55 at this point in 2021. There have been more races run in the U .S. at this point in 2022 compared to 2021 (12,515 vs. 12,379, but the number of starts has declined (from 93,433 to 91,756).

Year-end average field size in 2021 was an all-time low of 7.38, and with a busy summer schedule that have more tracks operating in the months ahead, the year-end average for 2022 is almost certain to be lower by year's end. The last year field size exceeded 8 starters per race was  2011.

One metric that has increased significantly  from 2021 is purse money. Purses for the month of May were up by 17 percent from 2021, slightly higher than the 15 percent year to date jump in purses. With year to date wagering up by one-tenth of one percent, it's obvious the purse increases are coming from alternative gaming or other sources.

May 2022 vs. May 2021
Indicator May 2022 May 2021 % Change
Wagering on U.S. Races* $1,414,309,517 $1,416,434,186 -0.15%
U.S. Purses $125,070,907 $106,817,021 +17.09%
U.S. Race Days 399 399 0.00%
U.S. Races 3,249 3,252 -0.09%
U.S. Starts 22,289 23,183 -3.86%
Average Field Size 6.86 7.13 -3.77%
Average Wagering Per Race Day $3,544,635 $3,549,960 -0.15%
Average Purses Per Race Day $313,461 $267,712 +17.09%

 

YTD 2022 vs. YTD 2021
Indicator YTD 2022 YTD 2021 % Change
Wagering on U.S. Races* $5,290,155,463 $5,284,770,052 +0.10%
U.S. Purses $473,272,997 $411,375,648 +15.05%
U.S. Race Days 1,501 1,444 +3.95%
U.S. Races 12,515 12,379 +1.10%
U.S. Starts 91,756 93,433 -1.79%
Average Field Size 7.33 7.55 -2.86%
Average Wagering Per Race Day $3,524,421 $3,659,813 -3.70%
Average Purses Per Race Day $315,305 $284,886 +10.68%

2020 Comparisons:

May 2022 vs. May 2020
Indicator May 2022 May 2020 % Change
Wagering on U.S. Races* $1,414,309,517 $908,333,874 +55.70%
U.S. Purses $125,070,907 $31,971,002 +291.20%
U.S. Race Days 399 123 +224.39%
U.S. Races 3,249 1,059 +206.80%
U.S. Starts 22,289 9,145 +143.73%
Average Field Size 6.86 8.64 -20.56%
Average Wagering Per Race Day $3,544,635 $7,384,828 -52.00%
Average Purses Per Race Day $313,461 $259,927 +20.60%

 

YTD 2022 vs. YTD 2020
Indicator YTD 2022 YTD 2020 % Change
Wagering on U.S. Races* $5,290,155,463 $4,056,194,923 +30.42%
U.S. Purses $473,272,997 $254,699,053 +85.82%
U.S. Race Days 1,501 1,001 +49.95%
U.S. Races 12,515 8,421 +48.62%
U.S. Starts 91,756 67,928 +35.08%
Average Field Size 7.33 8.07 -9.11%
Average Wagering Per Race Day $3,524,421 $4,052,143 -13.02%
Average Purses Per Race Day $315,305 $254,445 +23.92%

 

2019 Comparisons:

May 2022 vs. May 2019
Indicator May 2022 May 2019 % Change
Wagering on U.S. Races* $1,414,309,517 $1,300,923,869 +8.72%
U.S. Purses $125,070,907 $115,776,828 +8.03%
U.S. Race Days 399 450 -11.33%
U.S. Races 3,249 3,650 -10.99%
U.S. Starts 22,289 25,955 -14.12%
Average Field Size 6.86 7.11 -3.53%
Average Wagering Per Race Day $3,544,635 $2,890,942 +22.61%
Average Purses Per Race Day $313,461 $257,282 +21.84%

 

 

YTD 2022 vs. YTD 2019
Indicator YTD 2022 YTD 2019 % Change
Wagering on U.S. Races* $5,290,155,463 $4,681,850,887 +12.99%
U.S. Purses $473,272,997 $428,807,298 +10.37%
U.S. Race Days 1,501 1,605 -6.48%
U.S. Races 12,515 13,552 -7.65%
U.S. Starts 91,756 102,513 -10.49%
Average Field Size 7.33 7.56 -3.08%
Average Wagering Per Race Day $3,524,421 $2,917,041 +20.82%
Average Purses Per Race Day $315,305 $267,170 +18.02%

 

 

* Includes worldwide commingled wagering on U.S. races.

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July 1 Could See Scratches If Horses, Trainers Aren’t Registered With HISA

As the Horseracing Integrity and Safety Authority (HISA) begins its big push to encourage people to register themselves and their racehorses ahead of a July 1 deadline, many are asking — what happens if we don't?

According to a feature in the Thoroughbred Daily News, non-registered horses and non-registered connections will not be able to race after the implementation deadline, but that doesn't mean the entry boxes will be backed up.

Entries for July 1 and after will still be taken for horses who aren't HISA-registered, and trainers will be informed if their entered horse isn't yet HISA registered so they can complete the process ahead of scratch time. The same will apply for trainers or owners who are entering horses but aren't registered themselves at entry time.

Riders who aren't registered with HISA will also be notified they need to complete registration ahead of change time, or could be taken off mounts.

Anyone who has a state racing commission license, with the exception of some vendors, will need to register with HISA. Most horses will need to be registered by the person who will be the responsible party for them, which will be the trainer in most cases. The registration process is free.

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State Gaming Commission Outlines Security Protocols For Belmont Stakes Day

The New York State Gaming Commission's equine medical director and all three stewards will be available to the media to address any events that occur during races on June 11, 2022, Belmont Stakes Day at Belmont Park in Elmont, N.Y.

At the conclusion of the day's races, Commission equine medical director Scott E. Palmer, VMD, and the three stewards – Braulio Baeza, Jr. (Gaming Commission), Dr. Jennifer Durenberger (The Jockey Club), and Brook Hawkins (NYRA) – will be available in the Belmont Film Theater after the post-Belmont Stakes winner's connections press conference to address media questions regarding any incidents, inquiries, objections, or rulings that occurred during any of the day's races.

Dr. Palmer will also be available to the media in the event of any on-track incidents during any of the day's races. If an equine incident occurs in any of the races, Dr. Palmer will be available following the conclusion of that race in his office (immediately adjacent to the press elevator in the basement of the grandstand). Dr. Sarah Langsam, the American Association of Equine Practitioners on-call veterinarian, will provide media support for NBC's coverage of the Belmont Stakes.

Security Protocols for the Belmont Stakes

Horses running in the Belmont Stakes are subject to continuous 72-hour “dedicated watch” by experienced security personnel leading to post-time. During a “dedicated watch,” one guard is stationed full-time for every horse programmed.

Security Protocols for the Metropolitan Handicap

Horses running in the Metropolitan Handicap are subject to “intensified watch” by a team of six-to-eight experienced security personnel conducting mobile surveillance and direct horse checks at least three times per shift, from 72 to 30 hours prior to their race. Then, a continuous “dedicated watch” will take place for the final 30 hours before post-time.

All guards employed for these protocols are experienced NYRA security personnel and racing investigators, who receive ongoing education from the Organization of Racing Investigators.

For all horses in the Belmont Stakes and the Metropolitan Handicap

Horses must be on the grounds of Belmont Park no later than 72-hours prior to their anticipated post time. Exceptions are at the discretion of the Stewards.

The Commission will obtain out-of-competition blood and hair samples of horses competing in these races and have the samples tested at the New York Equine Drug Testing and Research Program at Morrisville State College. The Commission has coordinated with other jurisdictions to obtain out-of-competition samples from horses not stabled in New York.

Once arrived, horses must remain at Belmont Park until after the running of their specified race. Exceptions will only be granted in the case of an unforeseeable emergency, as determined by the dedicated watch security in consultation with veterinarians and stewards.

Horses shall reside in their trainers' current barns and/or at stalls on the grounds, which are subject to monitoring by security personnel.

No horse entered in the Belmont Stakes or the Metropolitan Handicap may be treated within 72-hours of the race unless Commission security personnel are present. NYRA or Commission security personnel will monitor all treatments performed by veterinarians.

No administration of any medication or substance by dose syringe is permitted within 24-hours of a race.

All syringes and containers for administered medication will be retained by Commission personnel for possible testing.

Veterinarians shall submit a 72-hour treatment plan for each horse entered in the Belmont Stakes or the Metropolitan Handicap by noon on June 8, 2022.
Complete veterinary records for 72-hours prior to Belmont Stakes Day shall be submitted to the Commission, which will review and then publicly post the records to its website.

Entry-exit logs will be maintained by NYRA and Commission security personnel.
All persons – including veterinarians, trainers, assistant trainers, farriers, owners, or other connections – on entering the stall, engaging in contact with the horse, or performing any service for the horse, must have a valid Commission license on their person.

Such persons will be logged-in by security personnel, along with the reason for their visit. Routine stall and horse maintenance by identified grooms and staff will be monitored but are exempt from logging.

All equipment, feed, hay bales, etc. are subject to search and seizure by both NYRA and the Commission, as provided by law.

On race day, no treatments will be permitted for horses entered in any stakes race pursuant to NYRA policy, unless it is for an emergency or as approved by the stewards.

All horses participating in the Belmont Stakes and the Metropolitan Handicap must report to the assembly barn no less than 45 minutes prior to the designated post time.

On race day, blood samples for TCO2 analysis will be collected from horses in the assembly barn between 45 minutes to one hour before post time. Horses will then be escorted to the paddock.

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Federal Judge Dismisses Second Lawsuit Claiming HISA Is Unconstitutional

Opponents of the Horseracing Integrity and Safety Authority and the law that created it lost another round in court on Friday, June 3, when a federal judge in Kentucky dismissed a lawsuit claiming the law forming the independent, non-governmental organization is unconstitutional because it grants legislative powers to the Authority.

Joseph M. Hood, United States District Court Judge for the Eastern District of Kentucky's Central Division in Lexington, dismissed the claim, a little over two months after a federal judge in Texas threw out a similar suit filed by the National Horsemen's Benevolent and Protective Association and a number of its state affiliates.

A variety of organizations brought this action, including  the states of Oklahoma, West Virginia and Louisiana; racing commissions in Oklahoma and West Virginia; the United States Trotting Association and the Hanover Shoe Farm run by the USTA's president, Russell Williams; the Oklahoma Quarter Horse Association; and the operators of Oklahoma racetracks Fair Meadows, Remington Park and Will Rogers Downs.

At the heart of their suit, the plaintiffs assert that the Authority, as a private entity, is unconstitutionally dictating rules and regulations to the Federal Trade Commission, the branch of government that oversees the organization charged with enforcing racetrack safety and anti-doping and medication control programs for Thoroughbred racing in the U.S. The Authority's racetrack safety programs goes into effect July 1, 2022, with the anti-doping and medication control program scheduled to go into effect Jan. 1, 2023.

The Horseracing Integrity and Safety Act that created the Authority gives ultimate power to the FTC to approve or reject proposed rules from the Authority board . Plaintiffs, however, felt the law puts the FTC, as Hood wrote in his opinion, in a “ministerial role where the FTC is forced to act as a rubber stamp for the Authority's proposed rules.”

The legislation that led to the Authority is modeled on the Maloney Act, a 1938 law amending the Securities Exchange Act by creating the Financial Industry Regulatory Authority (FINRA) that developes and enforces rules in the securities markets. Like the Authority, FINRA is a non-governmental independent agency. In both cases, the government entities that oversee the Authority and FINRA may only approve proposed rules and regulations if they are consistent with the requirements of the laws that created them.

If the FTC does not approve the rules and regulations proposed by the Authority, it may make recommendations to modify them.

“In the event the Authority fails to incorporate the FTC's recommended modifications,” Hood wrote in his order, “the FTC has the power to disapprove the proposed rule until the Authority makes the recommended modification, meaning the FTC retains the ability to control what becomes a binding rule and can contribute to the language of the proposed rule through recommendations that must be made for the Authority to resubmit.”

Plaintiffs also objected that the Authority operates with “self interest” because four of the nine board members are from within the Thoroughbred industry – even though none is allowed to have any direct involvement or vested interest. Hood found that argument lacks merit for the same reason, namely that even if the Authority is “comprised of self-interested competitors,” it “is subordinate to the FTC in the regulatory process.”

Hood also rejected plaintiffs' allegations that HISA unconstitutionally commandeers states by requiring them to fund the Authority's operations. According to the law, states “may elect” to remit fees on behalf of their members but are not required to do so.

“The provision neither requires the states to collect fees from covered persons nor does it involve state funds,” Hood wrote. “Instead, it is merely a requirement on private entities, i.e., the covered persons, to remit fees to the Authority. … Under HISA, the consequence of a state not opting to collect the remitted fees from its members is that the state may not collect funds for related regulation of their own because HISA provides 'exclusive national authority' over covered activities and state(s) that Authority rules 'shall preempt any provision of state law or regulation with respect to matters within the jurisdiction of the Authority under this Act.”

Hood's order granted a motion by the defendants (the Authority, the Federal Trade Commission and numerous FTC officers) to dismiss the action based on “failure to state a claim upon which relief can be granted.”

Like the Texas suit that was also dismissed, Hood's order is expected to be appealed.

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