The sport of kings is bleeding betting dollars again this year, and bad weather, eyebrow-raising disqualifications, and odds spikes driven by computer-assisted wagering don’t bode well for a big turnaround in 2025's back half.
- U.S. horse race wagering is down in 2025, with total handle falling 2.56% year-over-year due to factors like weather-related race cancellations and fewer race days, although average betting per race day is slightly up.
- Controversial disqualifications and the influence of computer-assisted wagering (CAW) are creating frustration among retail bettors, who feel disadvantaged by last-minute odds swings and massive exotic bets CAW groups placed.
- Industry leaders acknowledge the growing divide between high-tech CAW players and everyday gamblers, with some tracks (like Del Mar) trying to limit CAW influence in win pools to stabilize odds and restore bettor confidence.
Figures Equibase collected and published Tuesday show total betting on U.S. Thoroughbred races dipped to approximately $951.5 million in July 2025, down 1.22% from July 2024.
As of the end of July, total wagering on U.S. races stood at around $6.7 billion, down 2.56% from the same point last year.
There are some legitimate excuses for the drop-off in betting on horse racing in July and 2025 overall. For example, a heatwave in the Midwest last month forced tracks to cancel race days, costing them wagering on those races.
The number of race days last month fell by 3.39% to 370, compared to 383 in July 2024. The number of U.S. race days at the end of July stood at 2,082, down 4.19% from last year.
Trending in the wrong direction
As a result, there is a silver lining for the industry. Average wagering per race day was up 2.25% year-over-year in July, to $2.57 million. Average betting per race day in 2025 thus far is up 1.7%, to $3.2 million.
But, when all is said and done, 2025 is still trending toward another down year for horse race betting in the U.S. The Triple Crown season has come and gone and football season now looms, meaning more casual horseplayers could soon turn whatever attention and money they earmark for horse racing toward the NCAA and NFL instead.
“Unless there is a significant reversal in the remaining months of 2025, this will be the fifth straight year of declining wagers on U.S. Thoroughbred racing,” veteran horse racing journalist Ray Paulick wrote Tuesday.
The decline horse race betting happens as wagering using U.S. online sports betting sites continues at a brisk pace. Moreover, recent events within the sport of kings could likely make any “significant reversal” a much more difficult feat to achieve.
Battle with the bots
For starters, computer-assisted wagering (CAW) groups continue to plunge into pari-mutuel betting pools, providing much-needed handle for tracks but creating volatility in betting odds that can irk retail bettors.
Tensions over CAW wagering at Del Mar came to a head recently with some eye-watering changes in win odds. The plummeting payouts for bettors was enough to prompt Del Mar Thoroughbred Club (DMTC) to start cutting CAW players off from betting into the Southern California track’s win pools two minutes before races begin.
“We had taken steps to encourage CAW players to process their win wagers earlier in the cycle, but it has become clear that we need to take additional measures,” said Josh Rubinstein, DMTC president, in a press release. “We will continue to do our best to create a racing and wagering product that appeals to all segments of the horseplayer market.”
The restrictions on CAW win pool wagering reportedly helped keep win odds relatively stable since the change was made. However, the CAW groups are still present and active in the pools for exotics (exactas, trifectas, etc.) and horizontal bets (Pick 3, Pick 4, etc.)
This significant presence was highlighted on July 31 by a CAW bettor spending $108,000 on “thousands of different tickets and combinations” to claim a $476,322 Pick 5 jackpot, Daily Racing Form reported. The average bettor likely lacks this kind of bankroll.
A Del Mar official reached out moments ago to clarify that the $476,322 winning ticket on Thursday’s 50-cent late pick five was purchased by a CAW bettor who spent $108,000 on “thousands of different tickets and combinations.” #drf
— Steve Andersen (@DRFAndersen) August 1, 2025
If eyebrows weren't already elevated, they may have perked up over the weekend with a disqualification at Del Mar that got the social media masses chattering.
On Sunday, in the 72nd running of the California Thoroughbred Breeders Association Stakes at Del Mar, My Love Caroline crossed the wire first but was taken down by the stewards after appearing to cut off the favorite at the start.
That DQ followed the disqualification of Zulu Kingdom in the National Museum of Racing and Hall of Fame Stakes at Saratoga on Aug. 1, another eyebrow-raising decision that also resulted in a three-day suspension for award-winning jockey Flavien Prat.
.@LarryCollmus goes over the disqualification of #5 My Love Caroline in the California Thoroughbred Breeders' Association Stakes at Del Mar. pic.twitter.com/NxZr3NXgYa
— FanDuel Racing (@FanDuel_Racing) August 4, 2025
Disqualifications and weaker-than-expected payouts could rub bettors the wrong way. And while Del Mar and the New York Racing Association may have cooled tempers by restricting CAW action in the win pools, not everyone feels like there's a level playing field for all gamblers.
Recently elected Jockey Club Chair Everett Dobson acknowledged the CAW-related tensions during his keynote address at the group's annual racing roundtable, noting bettors are a key part of the sport.
“I further recognize the deep divide on the matter of computer-assisted wagering,” Dobson said. “I plan to use this position to better understand that issue and try to help the industry strike the right balance that ensures growth but does not disenfranchise the retail bettor. I look forward to my discussions with the interested parties in working towards practical solutions.”
