Betting on horse racing is a popular pastime in many countries around the world. The history of horse racing in the United States goes back centuries. However, it was only in the early 20th century that modern-day horse betting started gaining a foothold.
Kentucky legalized a pari-mutuel horse racing betting system in 1906. New York and Maryland didn’t take long to follow. Throughout the 1900s, state after state followed suit. Today, horse racetracks in the United States clear more than $3 billion on average in revenue every year. The legal framework around horse racing and betting continues to evolve.
Number of states that allow online horse racing betting
Today, 41 states in the United States allow online horse racing betting. North Carolina is the most recent state to approve horse racing betting in 2024. Georgia and South Carolina have been making attempts to pass horse betting legislation.
There are fewer states in the U.S. that allow sports betting. A total of 38 states and the District of Columbia have legalized sports betting in some form or another. Some states offer a full range of online sports betting options with multiple operators.
The Interstate Horseracing Act (IHA) of 1978
This federal legislation laid the groundwork for the legal framework governing horse racing betting in the United States. It grants legal permission for interstate simulcasting of horse races. People in one state can watch on TV as a horse race takes place in another state and place a bet on the race. The reason for this was to improve the economic viability of racetracks and encourage more people to bet on races.
State regulations
Horse racing betting is regulated at the state level. Each state has its own regulations and regulatory bodies. Some states embrace horse racing betting and allow off-track and on-track wagering. Others have more restrictive policies.
Some states ban horse racing betting altogether. This includes states like Hawaii, Utah, Alaska, and Mississippi. In Washington D.C., there are no horse racing tracks in DC, no simulcasting or OTB venues, and horse racing betting is illegal.
Pari-mutuel odds
Horse betting platforms use pari–mutuel odds.This means odds relate directly to the amount of money bettors wager on each horse. Odds will change after bettors place a bet.
Online racebooks have the same types of bets as bettors can find at a local racetrack. That said, the odds are formulated from a different pool than the ones at a local track. They may differ for each horse compared to the odds at the actual racetrack. Otherwise, they work in the same way as they are based on the pari-mutuel system.
Those who like to try fun games and engage in online activities would probably enjoy betting on horse racing. To do so they need to understand how the odds work and the legalities in their state so they can bet with confidence.
Most popular horse racing events to bet on
The Kentucky Derby is one of the most popular horse racing events in the United States. It’s a Grade One contest that takes place on the first Saturday in May every year at Churchill Downs.
The Preakness Stakes is held on the third Saturday of May at Pimlico Race Course and forms the second leg of the Triple Crown. The Belmont Stakes is run annually in June and is the last leg of the Triple Crown. The amount bet on Triple Crown Events increases year after year.
Another popular horse race to bet on is Breeders’ Cup and the venue where it takes place changes every year. Travers Stakes, the Arlington Million, and the Arkansas Derby are some other popular races.
Challenges and regulatory changes
The horse racing industry in the United States faces various challenges such as declining attendance rates at racetracks. Competition from other forms of gambling is another issue.
To address these issues, the industry wants some regulatory reforms. These include expanding betting options, improving collaboration with state authorities, and the use of better marketing strategies. In the future, there are likely to be regulatory changes in online horse racing betting as technologies evolve and customer preferences change.
