Dollars & Sense: US wallet number record in 2022

Thanks in large part to an increase in the number of games added, the race in the United States awarded a record amount in 2022 of nearly $1.31 billion. One might even call the numbers “historic”.

COVID-19-affected 2020 aside, this is the third consecutive season that US racetracks have awarded records—and 2022 has already broken last year’s mark. After hitting a record close to $1.17 billion in wallets in 2019, the figure inched up to more than $1.18 billion in 2021. But in 2022, the amount processed has skyrocketed by almost 11% to $1,309.837,841, according to Equibase’s January 5 release of Purebred Racing Economic Indicators.

It’s a well-timed increase, as inflation has hit the country. The annual U.S. inflation rate was 7.1% for the 12 months ending November 2022 after rising 7.7% previously, according to U.S. Department of Labor data released December 13.

The National Thoroughbred Racing Association welcomed the news of the record amount.

NTRA President and CEO Tom Rooney said: “The purebred racing wallets and pari-mutuel handles continue to show strength into 2022.” “Wallets have grown in double digits (percentage points) year over year and reached an all-time high thanks in part to contributions from other game sources.”

In terms of those other game sources, historic horse racing continued to be successful in both Kentucky and Virginia. For the first time in the Bluegrass State, available funds exceed $200 million by 2022—according to data from Equineline for Churchill Downs, Ellis . Park, Keeneland, Kentucky Downsand Race Park. The amount of $206,330,131 in available wallets is up 54% from 2021. While the Breeders’ Cup in Keeneland makes up a portion of that 2022 wallet, note that two years ago Keeneland hosted the Breeders’ Cup, 2020 and 2015, Kentucky’s available funds are $122.6 million and $100.3 million, respectively.

While not at that level in terms of total dollars, Virginia has seen similar percentage growth. Colony Downs‘ available wallets surpassed $15.5 million in 2022, a 50% increase from the 2021 season.

While US wallets continue to reach new heights in 2022, parity betting cannot sustain its momentum. In 2021, the value reached its highest level since 2009 at $12,215,598,838, but in 2022 it has dropped 0.87% to $12,108.807,335. The drop came despite a 0.79% increase in race days, despite a 0.33% drop in race totals to 33,453.

The industry did not end the year smoothly in terms of pari-mutuel processing rates as it fell 7.52% in December and 5.54% in the final quarter when compared to the same timeframe in 2021. Rooney expressed optimism that pari-mutuel betting could increase in the coming years if it suits sports betting.

“Pari-mutuel settlement is close to that of 2021 and is the second highest since 2009. These business trends come in a year of unprecedented growth for legal sports betting,” said Rooney. managed by the state”. “The 2023 gaming scene promises to be more competitive than ever for the sports betting dollar. It also presents a huge opportunity to introduce par-playing and pure motorsports.” reach a large new audience if we as an industry accept the challenge.”

The Dollars & Sense column appears twice a month in BloodHorse Daily.