The economics of horse racing

The complicated economics of horse racing

The Triple Crown commands big ratings (and enormous amounts of money in betting) but the sport as a whole is in a precarious position, thanks to limited tracks and an overreliance on subsidies. This special from Freakonomics unpacks what all that means for the future of the sport.

Every Kentucky Derby-winning horse

Racing a thoroughbred isn't just about riding a horse as fast as you can. There is a complex racing strategy that forces jockeys to balance aggression and patience, conserving energy for that final stretch. This Kentucky Derby Winners article explores the split-second decisions jockeys make during high-pressure races, the moves they make to outsmart their opponents, and the importance of connecting with their horse.

The global horse market is worth about $400B

In this podcast episode from a new series on horses, Freakonomics explores the market around buying and selling some of the world's top sport horses, and the nebulous forces that make them so valuable.

Breaking down the jargon and strategy of horse betting

Placing bets on horse racing isn't the same as a football or basketball game. You can pick a winner (win), who will come in second (place), and even third (show). And all the bets placed on a race are pooled together and divided among the winners. This Top Ten Picks video teaches the mechanics behind each bet, and shares insider tips that can lead to more informed betting choices.

The origins and evolution of the Triple Crown

For nearly 100 years we’ve referred to the Kentucky Derby, the Preakness, and the Belmont Stakes as the “Triple Crown.” But where did that term come from? It was popularized by a sports writer in the early 1930s. But this Old Smoke Clothing article, authored by the woman who wrote the book on Sir Barton, explores the British origins and how it gained popularity with Gallant Fox’s win in 1930.

F1 is a billion-dollar industry

...but that money doesn't come easily. Team principals have to constantly ensure money is coming in to fund their million-dollar cars every weekend. This CNBC video explores all the costs of running a team. It also shows how team principals woo sponsors and find ways to maximize their technology with a cost cap.

How one jockey became one of horse racing's most successful riders

Jockey Victor Espinoza is one of the most successful jockeys in recent American racing history, winning the Triple Crown in 2015 on American Pharoah, as well as seven Triple Crown races. This Paulick Report article, which came out prior to his induction into the Hall of Fame, dives into his background, career highlights, and what he focused on to become a successful jockey.

How US horse breeders sourced animals from the Syrian desert

Alexander Keene Richards was a pioneer in thoroughbred racing in the US in the 1800s, a time when every town with a few thousand people had a horse track. This interview highlights how Richards went to great lengths to perfect horse breeding.

Roller coasters can cost millions of dollars to make, but they often offer a substantial payoff

Over 6,000 roller coasters are in operation around the world as of 2025, with ongoing demand to build more each year. Despite being costly (some theme parks pay upwards of $50M for these rides), their financiers are able to justify the investment when considering the long-term value of a ride that sticks around for decades with daily streams of visitors.

Becoming an Olympic swimmer costs tens of thousands of dollars

When you see Olympic athletes win gold, it's the culmination of years of hard work and discipline. But it isn't all sweat equity. Before ever stepping foot on the world stage, these athletes have to pay or find funding for private coaching and lessons, club memberships, and meet fees, with estimates that it costs $25K to $40K to make it to the Olympics.

Broadway grosses over $1B annually

The famous but relatively small geographic area is responsible for a relatively enormous economy, thanks to high demand and high ticket prices.

Nearly 3 million people fly in and out of US airports every day

However, not all of those passengers generate revenue for the airlines they purchase their tickets from. One business class traveler typically pays for five to six economy travelers. That's partly because airlines measure profit by the square foot, and although a business class seat is usually roughly 30% roomier than economy seats, the business class traveler usually pays about three times as much as someone sitting in economy.

The total cost of owning an ETF is the sum of the holding costs and the transaction costs

Holding costs include things like the expense ratio, or the annual fee that a fund issuer charges. Transaction costs include things like brokerage commissions, or the fee that a broker charges to enact a trade. However, in recent years, most brokers have essentially eliminated commissions on ETF trading.

Why does the stock market matter?

Open any newspaper, turn on your local TV news station, or listen to a daily business radio segment, and you’re bound to hear about how the stock market is performing. Netflix created a 17-minute (free) explainer that dives deep into the nitty-gritty of how we got here.

The cost of college has more than tripled over the past five decades

Determining the all-in cost for each student’s specific circumstances can be tricky. But what is behind the rise in price? Analysts point to a number of factors—lack of transparency around cost, expansive government support, increased administrative burdens at schools, and more.

The lifetime costs of caring for a dog can run anywhere from $16,440 to $52,075

The cost depends on the dog's breed, size, and ongoing health conditions, according to a recent Rover survey. Tactics such as purchasing dog food in bulk and asking for a generic version of your dog's prescription medications can help reduce costs.

Warren Buffett turned a struggling textile mill into Berkshire Hathaway

With Class A shares trading at over $700K per share, Berkshire Hathaway's high stock price reflects Buffett's decades of long-term investing, major acquisitions, and a philosophy that has reshaped modern finance.

After the owner fell into a Ponzi scheme, one braiding shop in suburban Maryland began making $130K a day by staying open for 24-hours

Because braiding often takes a long time, the salon prioritizes fast, efficient styles, with two braiders often working together on a client, which increases revenue by increasing turnover. The salon has 120 seats and more than 400 contracted braiders across its 10,000-square-foot space.

Organized crime, including money laundering, drains $1.96T from the global economy annually

Overall, financial crime drains $3T from the global economy, with organized crime making up nearly $2T of that total. Drug trafficking is the second-largest drain on the global economy.

How much it costs to host the World Cup

The cost of hosting the world's biggest sporting event depends on a country's existing infrastructure. Learn how the World Cup in Qatar will impact the country's finances in this brief podcast.

Calculate creator economy platform costs

The creator economy continues to be an attractive way to earn money for many people. While many platforms exist to help creators monetize their work, each has different feature sets and pricing models. This calculator helps workers decide which platform works best for them.

Hedge funds, the private investment firms that trade a wide swath of financial assets, make money by imposing steep fees on investors and from the fund's investment performance.

Why new Rolexes can cost less than used ones

It's reasonable to assume a new Rolex watch—which often sell for thousands of dollars each—would be more expensive than a used version. However, that's increasingly not always the case. This video explains why some used Rolexes cost more than their new counterparts. Watch it here.

Christmas trees are a $6B global industry

In the US, the real tree industry is valued at $2B, the reflection of nearly 30 million trees sold annually at an average profit of about $10 per tree. While each tree takes about 8 years to mature, their artificial counterparts can be made much more quickly, mostly in China, valued at over $1B as of 2020.

A Tiger economy typically describes a booming Southeast Asian country

The term “tiger economy” has been used over the last several decades to describe a developing country experiencing rapid economic growth, often due to developing export-oriented industries and/or financial markets. The term was originally applied to Southeast Asian economies, including South Korea’s, and has since been used to describe Ireland, the Baltics, and Dubai.

The legend of the Chinese zodiac involves a race between animals

The legend of the Chinese zodiac says that to help people keep time, the emperor of the gods established a 12-year cycle, with each year symbolized by a different animal. To choose the animals, he held a cross-river race. Each of the winning animals used their unique skills to get across the river: The snake is sneaky, the rabbit is nimble, and the rat is cunning. These characteristics are believed to be mirrored by those born under the animals’ zodiac signs.

See how Budweiser's famous Clydesdales spend their days at Warm Springs Ranch, where roughly 70 to 80 of the beer brand's giant horses can be found at any given time.

The price of gas is a composite made up of several different factors, with the federal gas tax making up less than 20% of what drivers pay at the pump.

Before the current East Wing ballroom project, only two White House renovations in the past 100 years cost more than $10M.

The US dollar is the most widely circulated currency in the world, and is involved in nearly 90% of global transactions

The 1987 Nintendo video game 'Stadium Events' isn't known for being particularly fun, but its scarcity has made it a highly sought-after item that has sold for up to $35K at auction.

Art theft is the third-largest source of criminal revenues worldwide, thanks in part to the subjective nature of valuing a work of art.

Clever Hans was a 1900s horse that was believed to be able to solve math equations, tell time, and read and comprehend German, until a psychology student discovered how he got his answers.

Stanford built a Google Maps for the Roman Empire, revealing how much it cost to travel in the ancient world

The most expensive ad of all time was for Chanel No. 5 perfume and cost roughly $33M to produce in 2004—about $57M in today's dollars.

About 2,000 US babies are born annually without some portion of their limbs, potentially leading to a lifetime of pricey prosthetics.

SpaceX's S-1 or 'prospectus' revealed many previously unknown details about the company, including its unprofitability despite doing $18.7B in revenue in 2025, exactly how many voting shares Elon Musk will have in the company (roughly 85%), and more.

Watch how viruses like Ebola can spill over from animals to humans—and vice-versa.

Use this calculator to find the dollar value of your mental load, from meal planning to coordinating after-school care for your children.

Dozens of S&P 500 stocks, including Coca-Cola and Walmart—known as the dividend aristocrats—have increased dividends every year for 25 years

Despite being favored by 87% of Americans, Congress does not have term limits.

Double world record holder Hunter Ewen helped conquer his fear of balloons, called globophobia, by training to win Guinness World Record titles for balloon inflation.

Mark Twain spent decades feuding with the US Postal Service, convinced its costs and regulations were bureaucratic overreach.

Chaos theory—informally known as the butterfly effect—is the reason why weather forecasts are presented with probabilities rather than certainties.

The first steps to rebuilding your credit score include getting to know exactly what's on your credit report and figuring out how far you are from the '700 club,' or 'good score' range.

When you complete a CAPTCHA on a website to prove you are human, you may be unknowingly training algorithms for self-driving cars, whose systems require training data to help identify crosswalks, bicycles, and other outdoor objects.

Corals are themselves not coral reefs—the term refers to the tiny marine invertebrates that build the rigid reef.

Domino's Pizza's 30-minute delivery guarantee was responsible for the chain's 1980s surge, but it was discontinued after the company was found liable for delivery driver accidents.

Studies suggest when you sleep is as important as how much you get, and syncing with your circadian rhythms may lead to less fatigue and improved long-term health outcomes

American short story writer Flannery O'Connor raised 40 peacocks, which became potent symbols for her fiction's elegant violence