Horse racing is a hugely popular sport worldwide, with millions of dollars wagered on races throughout the year. Many fans see it as a great opportunity to invest in horse racing stocks, hoping for good returns if they invest at the right time.
However, many people still prefer betting as their main way of investing in the sport, as it offers quick returns for 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 investment opportunities for racing fans is investing in racetracks around the world. This is especially popular in the United States, where companies owning major courses are listed on the New York Stock Exchange.
A popular choice for many 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 time to invest before it potentially drops, as the stock’s value has been stable and is expected to grow by up to 31% over the next year. This growth is partly due to improvements like the recently re-opened paddock, which benefited the 2024 Kentucky Derby.
**Investing in Trainers**
Another way to invest in horse racing is by supporting trainers financially to improve their facilities and hire better staff. This method has led to long-term profits for many owners, often by buying horses and sending them to the same trainer. This support can elevate a trainer’s success, as seen with J P McManus and Jonjo O’Neill in the UK.
Some yards allow investments without owning a horse, with returns based on the trainer’s winnings throughout the season. Wealthier supporters prefer this method as it avoids the hassle of owning runners and provides a share of the prize money. However, not all yards accept this type of arrangement due to its complexities.
**Investing in Horses**
The most popular form of investment in horse racing is buying racehorses and earning money based on their track performances. There are many ways to invest in horses today, with syndicates being one of the most accessible options. However, big-money investors might find syndicates less appealing due to smaller returns if many people share ownership.
Investment opportunities vary, with shares ranging from 2.5% to 100%. The higher your share, the more you’ll pay for training, vet bills, and entry fees, but you’ll also get a larger share of winnings and stud fees.
**Betting Investment**
Betting on horse races is crucial for the sport’s success, as a portion of bets goes back into the sport as prize money. Horse racing is a popular betting option worldwide, offering excellent investment opportunities, especially around major events. Bettors can place bets up to a year in advance, often getting better odds. However, only the most experienced bettors are likely to see returns on their bets.