Horsepower in the Bluegrass: The Economic Impact of Horse Racing

Apr 07, 2024 Jennifer Kelly/TwinSpires.com

The arrival of Spectacular Bid in 1979 (Photo courtesy of the Kentucky Derby Museum)

The First Saturday In May, the world's mind is on Kentucky for the Fastest Two Minutes In Sports

On that one day, viewers see the owners, trainers, jockey, outriders, and more, a fraction of the people behind the sport, the names and faces that make the races go. That day’s glimpse is but a snapshot of what the sport means to the state. With five Thoroughbred and three harness tracks, horse racing in the Bluegrass is an essential part of the state’s economic fabric, a driver for the employment of thousands and millions of dollars in taxes and income.

From the executives that helm the tracks to the ushers showing fans to their seats, the sport and the industries that support it employ thousands of Kentuckians and bring in millions of dollars in both revenue and federal, state, and local taxes. From one horse, from one day at the races comes a plethora of financial benefits for the Bluegrass.

Backside morning bath (Photo by Coady Photography/Churchill Downs)

It Takes a Village

A trip to the racetrack will see fans focusing on the horses and the happenings on the dirt and grass ovals where the drama of competition plays out, but, behind the scenes, those races require a variety of people to make the day successful.

In the barn, the horses need grooms, hot walkers, trainers, farriers, equine dentists, and veterinarians to care for them. As they saddle, a paddock judge walks around, ensuring that each horse is in the right place with the right equipment as they prepare for the race ahead. On the track, they need a jockey to ride them and an outrider to guide them to the post. Once in the gate, assistant starters help the horses load, and the starter pushes the button to release them to compete in races that are written by a racing secretary.

This list is just the tip of the iceberg at the racetrack.

The arrival of Spectacular Bid in 1979 (Photo courtesy of the Kentucky Derby Museum)

These men and women, those who work as trainers, grooms, and more, are called direct jobs, while the track’s suppliers who bring in everything from feed to bedding create what are called indirect jobs. Those who work in housing, food, and other needs for both direct and indirect employees are called induced jobs. The latter include suppliers of food, housing, transportation, and clothing for both the sport’s direct and indirect employees. The racing industry in the state sustains 24,402 direct employees, with another 9,433 coming from indirect and induced sources.

Additionally, the horse industry in Kentucky covers more than just the racetracks; it also includes the breeders who care for the next generations as well as those employed in other equine sports, like horse shows, show jumping and dressage, and recreational riding.

The competition sector supports the employment of 7,942 Kentuckians, with another 2,793 persons employed in either indirect or induced positions. With events like the Land Rover Three-Day Event and the World Championship Horse Show, it is no surprise that these equine sports support thousands of Kentuckians.

With nearly 150,000 packing Churchill Downs on Derby Day and another 90,000 for the 2022 Breeders’ Cup at Keeneland, the state sees its fair share of fans traveling into the area from far and wide. While they are in the Bluegrass, they often will visit sights like the Kentucky Horse Park.

In fact, the state features 77 different horse-related attractions!

All of these attractions require people to power them and that means more opportunities for the Bluegrass. That sector employs 5,828 Kentuckians, with another 1,831 from indirect and induced businesses. The work these people do, whether boosting a jockey into the saddle or serving up a great meal to a visitor, reaps significant financial benefits for the state.

Cooking competition (Photo by Coady Photography/Churchill Downs)

Dollars and Cents

In terms of dollars, Kentucky’s equine industries generate millions of dollars in both income and taxes, vital streams of revenue for people, businesses, and state and local governments.

The people working in these fields bring in $1.9 billion in income from direct, indirect, and induced employees, with a billion of that coming from the Thoroughbred industries in the state. Direct jobs generate $646 million while the other two categories add $357 million. This means at least $115 million in tax revenue coming from those same industries each year.

Racing has a $517 million direct impact on Kentucky’s economy, with days like Kentucky Oaks and Derby days generating upward of $217 million. The 2022 Breeders’ Cup itself brought in nearly $82 million, covering everything from the spending on track and food and accommodations to the tax revenue generated by the weekend’s activities. Other equine competitive sports and tourism both add another $500 million to the economy as well, showing the power of Kentucky’s connection to the horse.

Churchill Downs clubhouse dining on Kentucky Derby day (Photo courtesy of the Kentucky Derby Museum)

Beyond the dollars and cents, Kentucky has historic and profound links to the sport of horse racing. Over the past century and a half, racing has survived through wars, economic downturns, and anti-gambling movements thanks to the investments that generations of men and women have made in the horses at the center of it all.

Ten of the thirteen Triple Crown winners were bred in the Bluegrass, as were 114 of the 148 Kentucky Derby winners. The thousands of people employed in racing, breeding, and beyond help to make all of that possible.

Kentucky’s Iconic Industry

In all, Kentucky’s nearly 240,000 horses employ people in more than 60 categories, covering those who work directly with these animals to the ones who support their efforts.

Whether Thoroughbreds race over the famed ovals at Red Mile and Churchill Downs or their off-track counterparts jump and dance for prize and pride, the state’s equine industry employs more than 60,000 people and generates more than $6.5 billion of economic activity. Even better, these four-legged friends give the Bluegrass an indelible identity, one that both sustains and defines Kentucky in the consciousness of the fans who pack the state’s racetracks and visit its many equine tourist attractions each year.

Sources:

• https://www.kentuckybred.org/kentucky-equine-industry-impact/
• https://www.thoroughbreddailynews.com/82m-economic-impact-of-keeneland-breeders-cup-revealed/
• https://www.derbymuseum.org/education/
• https://apps.legislature.ky.gov/CommitteeDocuments/349/13529/Aug%209%202021%20KEEP%20Testimony.pdf

All images are courtesy of the Kentucky Derby Museum and Churchill Downs. Please seek permission prior to use.