For decades, the United States and Europe have been natural benchmarks in the global horse racing conversation. Both have shaped the sport’s identity through iconic races, passionate fan bases, and deep-rooted betting cultures. But today, their paths are diverging. The US embraces digital innovation and diversified revenue, while the UK tightens regulation and grapples with declining engagement. Let’s discuss how these two racing giants are now betting on fundamentally different futures and how it will impact their future betting markets.

Regulation

The US regulatory landscape is fragmented, wherein each state sets its own rules. For example, states like New Jersey and Colorado have embraced digital platforms and integrated horse racing into broader sportsbook apps. In contrast, others, like Texas, still rely on in-person betting only. This patchwork system encourages experimentation, which allows operators to test new formats and user experiences without national constraints. However, it also makes it harder to create a unified national strategy since platforms must adjust to different laws and consumer protection across state lines.

In Europe, on the other hand, regulation is more centralized but increasingly strict. In the UK, for instance, affordability checks are now required for many bettors; they must prove they can afford to gamble. While these checks aim to protect consumers, they have led to frustrations and reduced activity. Some punters are turning to unregulated markets that don’t enforce such checks, triggering a  522% surge in traffic to black-market sites between 2021-2024. So while UK regulation aims to reduce harm, it’s unintentionally pushing users towards riskier environments.

Online Betting

Online betting in the States is booming. In just the first five months of 2025, US sportsbooks handled over $46.3 billion in bets. More importantly, around 84% of these bets are placed through mobile platforms, which shows how quickly users have embraced digital wagering. Among many operators, FanDuel dominates the space for a reason. Visit https://racing.fanduel.com. It features a sleek, easy-to-navigate platform that offers access to over 300 global racetracks with live coverage, expert picks, exclusive promos, real-time odds, betting guides, and previews, all accessible via mobile.

The UK also has a strong online presence, with nearly 80% of bets placed digitally. But, as stated earlier, the environment feels more cautious. Besides affordability checks, tighter restrictions in other areas, including advertising controls, deposit caps, and stake limits, have also slowed growth and pushed some users away. In fact, UK bettors now tend to place smaller, more frequent bets, often under £20, while US bettors typically place bets of $50 or more, which is roughly 50% to 200% larger than the average UK stake.

Market Trend

Not only is online betting growing, but so is the entire US horse racing market. Analysts expect it to reach $11.7 billion by 2033, with a modest but consistent annual growth rate of 3.1% over the next eight years. This rise is supported by increased interest in, as mentioned earlier, flexible state-level regulation and broader integration with sports entertainment. While growth isn’t as explosive as that of emerging markets in Asia with nearly 9% CAGR through 2033, the market remains resilient and continues to attract investment across channels.

In contrast, Europe’s horse racing market, especially in the UK, is facing a downturn. The tighter regulations that resulted in waning interest among casual bettors and younger audiences caused their online betting turnover to drop by £900 million in 2022–23. This, in turn, created a real-term gap of £1.75 billion compared to expected figures. Racing operators attempted to adjust by raising margins to maintain levy (tax on bookmaker profits) payments of around £99 million annually, only to risk further disengagement since punters will receive lower payouts, eroding the very activity the levy depends on.

Revenue Drivers

Major US races like the Kentucky Derby and Breeders’ Cup generate substantial revenue through sponsorships, media rights, hospitality, and tourism. The 2025 Kentucky Derby alone generated $103.8 million in local consumer spending across hotels, restaurants, local businesses, and transport. This was partially driven by its $5 million prize purse, which helped boost betting volume and raised media value. These high-profile races also stimulate year-round economic activity, supporting jobs in event management, breeding, training, and regional tourism long after race day ends.

Unlike the US’s multi-channel financial base, Europe solely relies on media rights revenue to sustain its racing industry. In 2024, Racecourse Media Group (RMG) paid out £113.9 million to British racecourses from media and data rights. However, as their engagement declines, this figure was down nearly 1% from the previous year, a signal that racing’s visibility is weakening. This would make broadcasters reassess the long-term value of their contracts, especially now as viewer numbers and betting activity continue to fall. 

US Racing Boom, UK Racing Slowdown

The US and UK horse racing industries are now charting distinctly different courses. The US is embracing growth through digital innovation, flexible state-level regulation, and diversified revenue streams that include sponsorships, tourism, and media rights. In contrast, the UK and broader European market are tightening controls, relying heavily on media rights and levy income, and facing declining engagement. Overall, the former is expansive and adaptive, while the latter is cautious and constrained.

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