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.

The Triple Crown, explained

Only 13 horses have ever won the Triple Crown—one of the most elusive titles in American sports. This explainer breaks down how the series works, why it's so difficult to win, and the legendary horses that defied the odds across the Kentucky Derby, Preakness Stakes, and Belmont Stakes.

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.

A guide to the 13 Triple Crown winners

Only 13 horses have swept the Triple Crown since 1919—Sir Barton as the first, and Justify the last in 2018. This Blood Horse rundown lists them all, spotlighting Secretariat's 31-length 1973 Belmont and Baffert's dual crowns with American Pharoh in 2015 and Justify in 2018. Unpack the stats and sires behind racing's grueling five-week gauntlet.

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.

What made Secretariat, one of racing's most dominant horses, so exceptional

No horse had won the Belmont, the "Test of the Champion," by 31-lengths prior to 1973 when Secretariat did it, and no one has done it since. In this New York Race Association article, jockey Ron Turcotte recounts his iconic race and provides his unique bond with his horse. He also reflects on Secretariat's post-Triple Crown career, noting how he matured later on.

What it takes to become a professional jockey

This short documentary follows a young, amateur jockey through early mornings and exhaustive gym sessions, where she rides a simulator made to look like real horses. It's a peek into a highly specialized (and highly unusual) athletic pursuit.

Horse racing's most notorious trainer

Few names are as synonymous with American horse racing as Hall of Fame trainer Bob Baffert. He has trained seven Kentucky Derby winners and two Triple Crown winners. But he also amassed over 30 drug violations in his career. This LA Times article dives into the suspensions and bans, and gives Baffert a space to defend his complex legacy in horse racing. (Some users may experience a paywall.)

Exploring one the rivalry between Affirmed and Alydar, one of the Triple Crown's best matchups

The rivalry between Affirmed and Alydar began when they were just two-year-olds in 1977, with Alydar winning four of the first five meetings. But Affirmed found another gear in 1978, and he won the next five races–including the Triple Crown. This Horse Racing Legends video shows all 10 races in the rivalry, including the three Triple Crown races.

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.

Inside the pigeon race with $50K at stake

More than 1,000 pigeons are released each year at the American Racing Pigeon Union convention as owners wait to see which of the birds arrives home first. This essay unwraps the niche activity's paradoxical love for the birds despite its at times utilitarian treatment of them.

Watch Secretariat's legendary 1973 Belmont race

When the 1973 Kentucky Derby came around, it had been 25 years since a horse had won the Triple Crown. And then Secretariat laid down the fastest Derby, a record that stands today. Then he won a sloppy Preakness, setting up a chance at a Triple Crown. This video is the wire-to-wire coverage of the 1973 Belmont showing Secretariat winning by a record 31 lengths, and the after-race celebration.

Campaigning for the Westminster dog show can cost up to $6K

Before dogs make it to the high-profile Westminster Kennel Club Dog Show, owners invest money in registering their dog in numerous shows, paying for professional photoshoots, and grooming services. While winning dog shows often doesn't come with cash prizes, it does usually result in more interest in the dog's breeding stock.

The economics of horseshoe crab blood

Horseshoe crabs are older than dinosaurs and have survived five mass extinctions that wiped most life from the planet. But it's only now that their future as a species is in danger. This blood, worth about $60,000 per gallon, is hyper-sensitized to certain bacteria that are fatal to humans. This 17-minute podcast dives into humanity's pursuit of horseshoe crab blood, a "somewhat magical" mixture heavily relied on by the pharmaceutical industry.

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.

The curious history of the Kentucky Derby's hats

The Kentucky Derby is one of the most prestigious horse races in the world, but it's also known for its iconic hats. This Garden and Gun article explores the historical significance of the hats at the Kentucky Derby, which began in 1875. See photos of the famous Derby hats through the years, and learn why they remain a central part of Derby culture to this day.

Americans spent nearly $150B in sports-related bets in 2024

These bets ranged from who would win the World Series to what color clothes famous celebrities would wear to the Super Bowl. Experts believe the industry will continue to grow.

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.

College football generates over $13B annually—but many programs run at a loss.

How Seabiscuit's DNA made him a winner

Seabiscuit's sudden success in the sport has been framed as a classic against-the-odds sports story. One Binghamton University molecular physiologist wanted to go a bit deeper, though, to see how much genetics played a role in the horse's legendary career. Using the horse's silvered hooves, his research team discovered that Seabiscuit's genotype was typically associated with late bloomers, a finding confirmed by the horse's track record.

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

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 economics of ski resorts

More than 480 ski resorts pack in nearly 65 million visitors each year in the US for historically high prices. Daily lift tickets may cost three figures at many locations. Amid industry consolidation and more stringent land use regulations, ski resorts are upping their prices—a factor that does not appear to be dampening the sport's popularity. Learn more here.

Sports betting, explained

Since a 2018 Supreme Court decision overturned the Bradley Act, which spurred a state-by-state legalization of online gambling, sports betting has become a rapidly growing multibillion-dollar industry.

How America became a nation of gamblers

For thousands of years, humans have liked to gamble. What started as dice games and betting on chariot races became a way for states to generate revenue here in America. This article explores how states have been using gambling to pay for infrastructure and capital projects–and the cost it’s had on the citizens.

Data suggests the typical horse produces over 12 horsepower—a unit of measurement for the rate of work done that was conceived as a marketing tool to communicate steam engine performance.

The long shot victory of Rich Strike at the Derby

Thanks to a last-minute scratch by Ethereal Road, Rich Strike made the 2022 Kentucky Derby field. He only had one win out of six races prior, and was listed as an 80-1 long shot. This USA Today article lays out the favorable draw and strategic ride that led to the biggest upset since 1913. Watch the wire-to-wire replay of his historic comeback and listen to the call by Larry Collmus.

Why is cocaine worth so much?

The global cocaine trade is worth an estimated $100B a year. But, where does that money go, who is spending it, and who is making it? Vice follows the money to understand why the cocaine business functions the way it does. From illicitly growing...

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.

In the late 1800s, New York City streets were covered with millions of pounds of horse manure thanks to a widespread horse-driven transportation industry.

Billionaires are racing to space to control future markets

Although different companies have described focuses ranging from luxury tourism to Martian space colonies, all are building infrastructure to capitalize on the shift away from government-only control and betting big on reusability and scale. By securing public contracts and subsidies, they aim to develop strategic partnerships toward dominance in low Earth orbit.

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.

A 'unicorn' is a private company with a $1B-plus valuation

Just like a horse with a spiraling horn on its head, private companies with a more than $1B valuation are rare creatures. But unlike the mythical creature, this type of “unicorn” is occasionally spotted in the wild. Unicorn companies include SpaceX, OpenAI, Skims, and more.

The economics of all-you-can-eat buffets

Is it possible to out-eat the price you pay for a buffet? How do these places make money? We looked at the dollars and cents behind the meat and potatoes.

Experts suggest the industry could be a $45B business

Sports betting used to primarily consist of who would win and the points spread, but the rise of online betting apps has fueled a substantial increase in parlay bets. "Existing markets are still growing at a rapid clip," said Noah Naparst, who evaluates sports-betting companies for Goldman Sachs. "So we’re not mature yet, but we’re not in the early wildcat days of the market anymore, either.”

A timeline of sports-betting scandals

This timeline examines memorable moments from three decades of sports-betting history. It breaks down key political moments, as well as some historical moments such as when the internet pushed underground bookmaking online. There are also multiple descriptions of betting scandals from 1989 on.

Track how college tuition has changed over the years across different types of institutions

The dramatic rise in the cost of higher education has a number of causes, ranging from increased number of students to administrative expansion at institutions. Even when accounting for inflation, the cost to pursue a degree has tripled over the past six decades. See data from the National Center for Education Statistics breaking out costs by institution type and year.

Each person on a racing pit crew has a specific task

No matter what track a NASCAR driver is on, they will eventually need a pit stop to change tires and add fuel. When the cars skid into their pit box, every millisecond counts. This long-form documentary from Joe Gibbs Racing shows the training each pit crew member goes through.

The lifetime cost of the American dream exceeds $5M

A new analysis suggests it costs millions of dollars to maintain the American dream over a lifetime. The price tag includes retirement, healthcare, higher education, homeownership, and other core elements of a comfortable life for the average American.

Prediction markets and sports betting are not forms of investing, despite how some fans portray them.

The economics of Chick-fil-A

Chick-fil-A has dominated national customer satisfaction surveys while growing conservatively for decades. This video goes into the economics the company deploys to be successful.

See how the cost of college tuition has changed overtime

Since the middle of the 20th century, higher education has been viewed as a stepping stone to well-paying professional careers for millions of Americans. But, it can be costly. As of 2024, annual tuition currently ranges from around $10K for an in-state, four-year public university to almost $40K for private institutions.

Watch Ray Dalio explain how the economy works

Dalio describes the economy as a machine that runs on three main cycles: productivity growth, the short-term debt cycle, and the long-term debt cycle. Dalio says layering these three cycles on top of each other essentially creates a template for understanding changes in the economy.

Global eclipse tourism is a multibillion-dollar industry, with the 2024 total solar eclipse across North America estimated to have generated $6B in economic activity across regions along its path.

Peloton makes most of its money via monthly subscriptions

Peloton has two core revenue streams: the exercise equipment it sells and the company's monthly subscription that gives users access to its class library. More than half of Peloton's revenue comes from the company's core product, the monthly subscription. Its "Peloton App+" membership tier is $28.99 per month.