After 170 years of operation, America’s oldest horse racetrack officially closed its doors on the last weekend of 2024. Freehold Raceway, located in New Jersey and co-owned by Penn Entertainment, couldn't stay open despite horse racing fans and industry leaders predicting horse racing is set to have a comeback in the United States.
“Unfortunately, the operations of the racetrack cannot continue under existing conditions, and we do not see a plausible way forward,” said Howard Bruno, the racetrack’s general manager, in a press release announcing the closure.
Freehold Raceway failed to escape the same fate of similar raceways across the country, mostly due to years of lack of interest and dwindling attendance, causing the track’s revenues to fall.
A horse racing resurgence?
Even though the track closed because of fewer spectators, online sportsbooks have seen some horse racing growth. In 2022, online betting set a new record, with bettors wagering $12 billion on horse races throughout the U.S.
Supporters argue online sports betting has shifted the sport's popularity, with new generations of young Americans increasingly aware of horse racing. In recent years, more sports betting guides have helped bettors better understand the sport's ins and outs.
The Kentucky Derby
One race still popular across generations is the Kentucky Derby, an American Grade I stakes race held at Churchill Downs in Louisville, KY. Beyond worldwide notoriety, it brings in lots of revenue for the track's owner, Churchill Downs Inc., generating record wagering numbers as more people engage with the sport.
“Our operational strategies present a model for other racing events to follow. Overall, the Kentucky Derby is not just a standalone event but a blueprint for the future of horse racing,” said Churchill Downs Inc. CEO Bill Carstanjen.
In addition, Hall of Fame horse trainer Bob Baffert added the sport has become more appealing to a younger demographic, describing it as a ‘bucket-list race’: “It’s an Instagram moment for everybody. Everybody goes. They’re taking their selfies: ‘I’m here. I’m here at the biggest party.’”
But aside from the wow factor the Derby brings, other horse tracks have failed to appeal to audiences the same way. This begs the question of whether or not more races like the Kentucky Derby should be created, with more high-profile events to draw in more crowds.
Entering the new era of horse racing
As the sport's demographic diversifies, observers have raised concerns over horse racing regulations and the ethics that surround it. Lisa Lazarus is CEO of the Horseracing Integrity and Safety Authority, or HISA. The Federal Trade Commission established HISA to oversee the integrity of horse racing across state lines and in different racing facilities.
“By prioritizing consistent and transparent practices, HISA aims to reassure fans and the public that horse racing operates with integrity and safety at its core,” Lazarus told CNBC. “This commitment not only fosters trust but also creates an environment where innovation can thrive, attracting new owners, participants, and fans.”
With that in mind, despite the closing of America’s oldest raceway, the sport appears set to remain, with interest increasing daily.
