Well….. racecourses make money by selling their product to horse racing fans, sponsors, and TV companies. Breeders and trainers make money from enthusiastic owners, while bookmakers make money from undisciplined punters.
There are also professional gamblers that make money from horse racing by outwitting bookmakers and betting against the crowd of habitual punters that lose regularly.
How Do Racecourses Make Money From Horse Racing?
Racecourses mainly make money by selling their product to people who love to spend a day at the races. They also top up their revenue by selling advertising space to prospective sponsors and by selling broadcasting rights to TV companies.
A ticket for a day at the races can cost as little as £5 to frequent some of the picnic areas that offer families a cheap day at the races. Of course, you can also pay several hundred pounds for a ticket to enjoy the finest hospitality at meetings such as Royal Ascot.
Most racecourses tend to offer a variety of food and beverages. Many have their own selection of bars and restaurants, while many also charge rent to a variety of food vans serving everything from hot pork roast sandwiches to ice cream.
Sponsorship is a massive source of revenue for racecourses. Much of the sponsorship is absorbed into prize money for races, but racecourses also make money from selling space on their advertising boards or in their racecards. Top-class horse racing attracts a big audience, which is why it can be a cost-effective form of advertising for many locally and globally popular businesses.
While horse racing may not be as popular a sport to watch as football, millions of fans still watch the big meetings. That’s why racecourses such as Ascot and Cheltenham can charge TV companies like Racing TV and ITV a lot of money for broadcasting rights.
Of course, Racing TV makes its money back by charging bookmakers for the rights to show the races in their betting shops. ITV also makes money from the adverts it shows in between races.
How Do Breeders And Horse Racing Trainers Make Money?
Horse race owners are probably the most underappreciated people in horse racing but, without them, horse racing would not survive. It’s true that many owners are wealthy people, but there are also a lot of racehorses that are owned by syndicates that are a group of people who all own shares in a horse, so that they can spread the cost and still experience the excitement of ownership.
While the whole of the racing industry profit from owners, many of whom lose money while financing a hobby that they love, it’s breeders and trainers that profit most from owners.
Breeding in horse racing is all about bloodlines and finding a stallion or broodmare whose offspring is successful means that owners will pay good money for any foals that are born after this success. For many owners, it is the chance to buy a racehorse that is both brilliant on the track and at stud that motivates them to buy horses in the first place.
Of course, all these horses need to be trained by a professional horse trainer, and these trainers charge fees that correspond to their success rates.
Why Do Bookmakers Make So Much Money From Horse Racing?
Bookmakers make a lot of money from horse racing because there are millions of punters out there that see betting as a bit of fun and are happy to throw a few quid each week as part of their weekly entertainment allowance.
You can’t blame bookmakers for cashing in on the services they provide as, after all, that is why they are in business. But what we don’t like about bookmakers is that they try and stack the odds in their favour.
How Do Professional Gamblers Make Money From Horse Racing?
Professional Gamblers make money from horse racing by working hard and being disciplined. Professional gamblers make money by only betting on selections when the odds are bigger than they think they should be. This process is often referred to as finding the value and it’s the foundation of most professional gambler’s success stories.
But each gambler’s idea of value is different as, like the odds offered by bookmakers, those odds are only an opinion. It is the professional gambler that can work out when odds are too short or should be shorter that makes money from horse racing.
Professional gamblers are also disciplined. They don’t bet just for the sake of it or when they feel like it. They avoid compulsive gambling and wait patiently to bet on only those selections they think offer value.
How Do I Make Money From Horse Racing?
While we’ve highlighted how people make money from horse racing, not many of us will ever own a racecourse, or be a breeder, trainer or bookmaker.
You may also think that you don’t have the skills, knowledge, and time to become a professional gambler. But you can also make money from horse racing by utilizing the skills of professional gamblers that are also willing to offer their analysis and tips to punters for an affordable fee.
Following the horse racing tips of a professional horse racing tipster takes just a few minutes each day. You simply need to subscribe to a professional tipster that has a proven track record in making money from horse racing, then place the advised bets at the recommended odds to the recommended stakes.
Making money from horse racing can be that simple, providing you have a disciplined approach. You can then set short-term goals that allow you to withdraw profits and spend them on things that you want. Alternatively, you can choose to use your profits to increase your staking plan with a view to making more money more quickly in the long term. The choice is yours.
We hope that’s answered your question, can you make money from horse racing?