How has betting affected the racing industry?

Betting has revolutionized the racing industry, especially in the U.S. following a 2018 ruling that legalized sports betting in many states. This shift has led to a significant increase in betting companies, primarily focused on motorsports, and transformed sponsorship dynamics within the racing sector. With the rise of online gambling, motorsports—historically overshadowed by horse racing—are now leveraging partnerships to drive new revenues. Moreover, niche motorsports are gaining exposure as betting markets expand to include diverse racing events, further fueling growth in audience engagement.

By the Numbers

• Sports betting has generated tens of billions in tax revenue annually since 2018.
• States like Pennsylvania saw a dramatic rise in motorsports betting following the legalization of sports betting.

State of Play

• The U.S. racing industry is seeing increased sponsorship from betting companies, particularly since the start of the 2020s.
• Mobile technology has facilitated 24/7 betting markets and in-play betting options, enhancing user engagement.

What’s Next

The trend of integrating betting into motorsports is expected to grow, particularly as more states adopt sports betting legislation. This growth will likely expand the visibility of niche motorsports and create new revenue streams through innovative betting options.

Bottom Line

Betting has become intertwined with the racing industry, significantly shaping its economic landscape. As technology and legislation evolve, motorsports must continue to adapt, leveraging the betting market to broaden their appeal and increase overall engagement.