Alternative gambling activities available to younger generations hurts the industry.
New York, NY (PRWEB) January 12, 2015
In line with a long-term decline, the Horse Racing Tracks industry has performed poorly over the past five years. Industry demand is increasingly being eroded as competing leisure and gambling activities progressively outcompete horse racing tracks in attracting customers. The Horse Racing Tracks industry maintains a base of loyal customers that regularly spend money at industry establishments. However, the majority of these customers are older males. “As these customers slowly pass away, the industry has been unable to attract substantial customers from younger generations to fill their place,” according to IBISWorld Industry Analyst Zachary Harris. This is primarily due to the plethora of alternative entertainment and gambling activities available to younger generations.
While on a slow, steady long-term decline, the industry has performed particularly weak over the past five years as a result of the poor state of the US economy. “Low employment and levels of per capita disposable income has led to a reduction in discretionary consumer spending, including at industry establishments,” says Harris. However, many industry customers continue to spend money at industry establishments even as their financial ability to do so decreases. In fact, many increase their spending on horse races during these periods with the hope of mitigating their losses. Nonetheless, increased spending by these customers has failed to make up for the decline in industry demand from the rest of the industry's customer base. As a result, industry revenue is forecast to decline at an annualized rate of 3.1% over the five years to 2014. In 2014, industry revenue is forecast to fall 2.5% to $3.7 billion.
The Horse Racing Tracks industry is expected to continue to decline over the five years to 2019, albeit at a slower rate than the past five years. Growth in the US economy is expected to reduce unemployment and increase incomes, spurring increased consumer discretionary spending, including on horse racing. However, despite an alleviation of the industry's short-term woes, the industry will still have to confront the long-term issue of the declining popularity of horse racing. Despite attempts to halt this decline through improved marketing and the broadening of industry service offerings, the industry is nonetheless still expected to decline over the five years to 2019.
For more information, visit IBISWorld’s Horse Racing Tracks in the US industry report page.
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IBISWorld industry Report Key Topics
Operators in this industry operate horse racing tracks. Industry services include on-track, off-track and simulcast betting, as well as other gambling activities and 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
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