Kentucky, known as the horse capital of the world, has seen a significant increase in total handle in recent years, surpassing California and Florida to rank second overall behind New York. This change was driven by the introduction of Historical Horse Racing machines, which provided a new revenue stream for the industry and attracted more bettors to the commonwealth. The state’s total handle increased by 98.7% from 2014 to 2024, while other states like New York, Florida, and California saw declines in handle during the same period.

The success of Kentucky’s racing industry can be attributed to the collaboration between various stakeholders, including tracks, horsemen organizations, and legislative officials. The state’s governance model ensures accountability and cooperation among all parties involved, leading to improvements in the wagering product and increased interest from horseplayers. Kentucky’s competitive environment, combined with a focus on promoting full fields and enhancing the overall racing experience, has contributed to its status as a premier racing destination.

While Kentucky’s racing industry continues to thrive, there are concerns about whether the state’s success is coming at the expense of other states. Kentucky’s focus remains on breeding the best horses and providing a top-notch racing product, with no intention of sharing its resources with other states. The Kentucky Thoroughbred Development Fund (KTDF), funded in part by Historical Horse Racing, plays a key role in incentivizing breeders and owners, as well as supporting racetracks in marketing and improving public relations to further enhance the state’s racing industry.