Kentucky remains the epicenter of American horse racing, bolstered by significant subsidies from slot machines misleadingly called “historical horse racing machines” (HHRs). These machines, rather than live race betting or attendance, have driven a tripling of purses over the past decade, including a 67% increase in the Kentucky Derby purse in 2024. However, this reliance on taxpayer-funded subsidies has sparked concern among insiders like racehorse owner and economist Marshall Gramm, who acknowledges the industry’s dependence on these artificial supports and worries about the sport’s sustainability and growth without them.

In contrast, New Jersey’s Monmouth Park faces severe challenges despite receiving $10 million annually in state subsidies. The track struggles with low participation, financial instability, and potential cuts to its funding under the new governor’s budget proposal. Without the addition of a racino, which Monmouth has unsuccessfully pursued, the track’s future looks bleak, mirroring the recent closure of another subsidized New Jersey track, Freehold. This highlights the precarious state of horse racing outside Kentucky, where subsidies alone may not be enough to sustain the sport.