Los Angeles, CA (PRWEB) December 11, 2013
Once considered the sport of kings, the Horse Racing Tracks industry has been slowly galloping downhill. With too many tracks and not enough people interested in horse racing, industry operators have been struggling to survive in the wake of rising competition from casinos, slot machines and lotteries. The recent recession has further worsened the situation for racing track operators, as skyrocketing unemployment rates and plummeting disposable incomes forced consumers to reduce their discretionary spending. Because the industry is heavily dependent on the handle, or the amount of money wagered on the races, falling disposable incomes translated into the decreased handle amount. In addition, the increased problem of drug abuse has further deteriorated the popularity of horse racing. As a result of these trends, IBISWorld estimates that industry revenue has contracted over the past five years, with a significant drop in 2013.
The Horse Racing Tracks industry exhibits a medium level of market share concentration. In 2013, the top four players are estimated to account for more than 30.0% of industry revenue (see IBISWorld report OD4372 for major player market shares). In order to boost their profit margins and market share, major industry players have been actively engaged in consolidation activity over the past five years. The industry is composed of a few well-known operators such as Churchill Downs, Stronach Group, The New York Racing Association and Penn National Gaming Inc. Due to declining attendance and the threat of increasing regulation, firms have bolstered their diversification by adding other types of gaming activities. Many racing track operators have been turning their businesses into racinos, which are a combination of racing tracks and casinos. Consequently, the number of enterprises is projected to contract over the five years to 2018, as the industry continues to undergo consolidation.
According to IBISWorld Industry Analyst Anna Son, “During the five years to 2018, the industry is unlikely to revamp significantly, with revenue forecast to continue declining.” In order to survive amid rising popularity of casinos and slot machines, industry operators will seek new ways to coexist with other forms of gaming. “Companies will also focus their marketing initiatives on attracting younger crowds,” says Son, as the industry's current racing fans continue to age. New technologies, such as online betting, is also anticipated to create more ways for the industry to sustain itself, as horse racing still remains a popular sport around the world.
For more information, visit IBISWorld’s Horse Racing Tracks in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in the Horse Racing Tracks industry operate horse racing tracks and offer on-track, off-track and simulcast betting, gaming and other services.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.