Horse racing is a hugely popular sport worldwide, with millions of dollars wagered on races each year. Many fans see it as a great opportunity to invest in horse racing stocks, hoping for significant returns if they invest at the right time.
However, many people prefer betting as their primary way of investing in horse racing because it offers quicker returns on winning bets. But what are the different ways to invest in horse racing, and is it wise to invest in the sport today?
### Investing in Racetracks
One of the best ways for racing fans to invest is by putting money into racetracks around the world. This is especially popular in the United States, where companies that own major racetracks are listed on the New York Stock Exchange.
A popular choice for investors is Churchill Downs. While it may not have the largest market cap, it has shown significant growth recently, with a 19% increase in the last few months and yearly highs. There’s still potential for further growth, with experts predicting up to 31% growth over the next year, partly due to improvements like the newly reopened paddock at the Kentucky Derby.
### Investing in Trainers
Another investment option is supporting horse trainers by funding better facilities and staff. This method has led to long-term profits for many owners. Typically, this involves buying horses and sending them to a specific trainer. This support can elevate a trainer’s career, as seen with renowned owners like J P McManus and his successful partnership with Jonjo O’Neill in the UK.
Some trainers allow investments without owning a horse, where investors earn returns based on the trainer’s winnings throughout the season. Wealthier supporters prefer this method as it avoids the complexities of owning a horse while still sharing in the prize money.
### Investing in Horses
The most popular form of investment in horse racing is buying racehorses and earning money based on their performance. There are various ways to invest in horses, with syndicates being one of the most accessible options. However, for big-money investors, syndicates might not offer substantial returns due to shared ownership.
Investors can buy different percentages of a horse, such as 2.5%, 5%, or even 100%. The higher the ownership percentage, the more one pays for training, vet bills, and entry fees, but also the larger the share of winnings and stud fees.
### Betting Investment
Betting on horse races is crucial for the sport’s success, as a portion of the bets goes back into the sport as prize money. Horse racing is one of the most popular betting options globally, offering excellent investment opportunities, especially around major events. Bettors can place bets up to a year in advance, often securing better odds. However, only experienced bettors are likely to see consistent returns from their bets.