Not long ago, placing a bet on a horse race in the United States typically meant you had to be at the racetrack or at a local off-track betting (OTB) parlor. That began to change in the early 2000s with the advent of advance deposit wagering (ADW) platforms, which allowed fans to wager on races through phone accounts or the internet. Over the past two decades, online horse race betting has grown from a niche service to a mainstream avenue that is crucial to the sport’s economy. Today, a significant portion of the betting “handle” (total money wagered) on U.S. races comes from online bets placed by fans around the country, reflecting a major shift in how people engage with the sport.
Early Days of Online Wagering: In the late 1990s and early 2000s, companies like TVG, Youbet, XpressBet, and TwinSpires (associated with Churchill Downs) emerged, leveraging provisions of the Interstate Horseracing Act that allowed wagering across state lines where legal. Initially, adoption was gradual – many traditional bettors still preferred the social experience of the track or OTB. However, the convenience of betting from home (or anywhere with an internet connection) began attracting a new audience. Die-hard horseplayers embraced the ability to play multiple tracks in one day without traveling. Small racetracks in various states found new lifelines as their races became accessible to a national betting audience through these platforms, increasing their handle (and thus revenue). By the 2010s, most states that had live horse racing also permitted licensed online horse betting, and fans could legally bet on races in other states via approved platforms. This period saw robust competition and innovation among ADW providers, each offering perks like handicapping videos, past performance data, and loyalty rewards to attract bettors.
Post-2018 Boom and Sports Betting Integration: A landmark moment for all forms of U.S. gambling came in 2018 when the Supreme Court struck down the federal ban on sports betting (the PASPA ruling). This allowed states to legalize sports betting, which many swiftly did. The horse racing industry keenly observed this development. On one hand, sports betting is a potential competitor for the gambling dollar; on the other hand, it presented opportunities for cross-over. Some racing-focused companies expanded into sports betting, while sports betting giants looked to incorporate racing. For example, FanDuel (a major sports betting brand) acquired TVG, rebranding it as FanDuel Racing, and integrated horse racing into its app alongside sports bets. This meant that someone betting on NFL or NBA could, with the same account, bet on the Kentucky Derby or a random race at Belmont, introducing new people to horse racing. Many states that rolled out mobile sports betting also made sure to include horse racing options, sometimes via partnerships (e.g., the DraftKings app might link to racing content from another provider). The exposure of horse racing odds and content on popular sports betting platforms has been a double-edged sword: it gives racing access to a broader audience, but racing also has to compete and modernize to hold attention in a sea of other sports options.
The Impact of COVID-19: The COVID-19 pandemic in 2020 dramatically accelerated the online betting trend for horse racing. For a period, racetracks ran races without any spectators, meaning 100% of wagering was online or via simulcast. Even once some tracks reopened to limited crowds, many fans remained cautious and stuck to online betting. Interestingly, horse racing was one of the few sports that continued (with safety protocols) during the early months of the pandemic shutdowns, because it was easier to conduct without crowds than, say, team sports. With fans stuck at home and starved for live sports content, racing’s online handle saw a significant uptick. Many people who had never bet on horses before tried it out during that time, since there were no other live sports to bet on. Tracks and ADWs responded by offering sign-up bonuses, free past performances, and “virtual watch parties” on social media to engage this new audience. The result: 2020 saw surprisingly solid wagering numbers for horse racing, despite the hardship of closed gates, because online betting largely filled the gap. This period likely converted a number of sports bettors into occasional horse racing bettors.
Features and Advantages of Modern Online Betting: Modern horse betting apps and websites offer far more than just the ability to place a bet. They provide live HD video streaming of races from tracks around the world, so bettors can watch the action live on their phones or computers. Many have integrated handicapping tools — from expert picks and analysis videos to AI-driven tips. Want to know how a horse does on a wet track or how a jockey performs in turf sprints? A few clicks and you have the stats. Online platforms also allow a level of wagering complexity and flexibility that’s hard to manage in person — for instance, you can easily play a multi-race wager like a Pick 5 across different tracks, or quickly hedge a bet in one race after seeing unexpected odds shifts, all in seconds. Another benefit is cashless, immediate transactions: winnings from one race are instantly in your account and can be used for the next race or withdrawn to your bank, as opposed to physical tickets which you’d have to redeem at a window. Plus, many ADWs have loyalty programs, giving bettors points for each wager that can later be redeemed for wagering credits, merchandise, or even contest entries.
Challenges and the Future: The rise of online betting hasn’t been without challenges. Racing has had to ensure that its cut of revenue (which funds purses for horsemen and operational costs for tracks) is protected in the online model, since bets can be made by someone in another state not physically at the track. There’s a complex revenue sharing system to address this, but it’s an ongoing area of negotiation. Additionally, as mentioned, horse racing competes with other forms of gambling that are now more accessible. The sport is working on marketing initiatives to stand out, such as free-to-play games that introduce people to handicapping, and capitalizing on big events like the Kentucky Derby by funneling those once-a-year bettors into regular customers on racing apps. Looking ahead, we might see further integration — perhaps joint pari-mutuel pools across countries for bigger liquidity, or racing bets offered on general betting exchanges in the U.S. if laws evolve. The use of cryptocurrencies or blockchain tech for wagering is also being explored by some innovators, potentially enabling global betting markets or new ways to structure bets.
In summary, online horse race betting in the U.S. has transformed from a novel concept to a mainstay of the industry. It has made the sport more accessible than ever: a fan in a state with no local track can still participate in the excitement of Saratoga or Del Mar with a few taps on their phone. This expansion has helped sustain horse racing by tapping into a broader customer base and adapting to modern consumer preferences. As technology and regulations continue to evolve, the digital betting arena will likely become even more important, ensuring that horse racing can gallop alongside other sports in the online wagering world.