Horse racing is one of the world’s most popular sports, with millions wagered on the action across the globe throughout the year. However, many fans that have an interest in the sport will typically see it as a perfect opportunity to invest in horse racing stocks, as there could be healthy returns should you invest in the sport at the right time.
Despite this, many across the world continue to prefer to use their bets as their primary way of investing in the sport, as this is the quickest way to get returns for winning selections. But, what are the different ways to invest in horse racing, and could it be wise to invest in the sport in this modern era?
Investing In Tracks
One of the best investment opportunities for racing fans could come in the form of investing in racetracks from across the world. This is typically most popular within the United States, with companies owning many of the leading courses available on the New York Stock Exchange.
A popular option for many investors comes in the form of Churchill Downs, which may not boast the biggest large cap stock, but is considerable in terms of growth in recent history. Company growth is up 19% in the last few months, with the stock recording yearly highs in recent months.
Nonetheless, could there still be time to invest in the company before it drops? The obvious answer to that question to yes, as the good news for investors is the fact that the value is still increasing in value, and it has been stable over the last few months.
There is still room for additional investment growth, with experts predicting up to 31% growth in Churchill Downs over the next 12 months. A lot of that is down to the work that the track is doing, with the recently re-opened paddock seeing immediate benefit at the 2024 edition of the Kentucky Derby.
Investing In Trainers
Away from the stock exchange, horse racing fans could also invest in trainers in terms of putting forward money to enhance facilities and to afford better staff. This has become a popular method, which has seen long-term profits achieved by a number of owners throughout recent history, with the main way of doing this coming in the form of buying horses and then sending them to the same trainer.
This backing can take a trainer to the next level, with renowned owners such as J P McManus enjoying periods of long success due to his working relationship with Jonjo O’Neill in the United Kingdom. Many yards also enable investment to be made without owning a horse, as the investors will get their returns based on the winning returns picked up by the trainer throughout the season.
More wealthy supporters of the sport prefer this method, as it removes the prospect of having runners. They also gain a share of prize money that is won throughout the season by the yard. However, due to the complications with this kind of arrangement, it isn’t widely accepted by every yard within the sport.
Investing In Horses
The most popular form of investment within the sport of horse racing comes in the form of buying racehorses and then reaping the rewards from a financial standpoint based on their performances on the track. Nowadays, there are many different ways to invest in horses within sport, with syndicates becoming one of the most accessible routes into the game.
However, for big-money investors this may not scratch the itch, as you will likely get slim returns for your money if there are many others with shares. But, there is typically investment opportunities for owners with 2.5%, 5%, and 100% sharing opportunities available across the world.
However, it is worth remembering that the higher your percentage in the horse, the more that you will need to pay out in terms of training costs, vet bills, and entry fees. But, this also goes the opposite way too, as you will have the biggest share of the winnings and stud cost compared to those with smaller shares.
Betting Investment
Want to learn how to bet on horse races online? Betting on sport is incredibly important when it comes to the success of racing, as percentages of bets made go back into the sport in the form of prize money. Horse racing is one of the most popular betting options in the world, and therefore there is an excellent opportunity for investment.
This largely revolves around some of the biggest events on the calendar, and bettors can make selections on races up to a year in advance. This can be a solid investment for gamblers, as they receive much better odds by making a selection earlier. However, only the most experienced bettors will stand the best chance of gaining returns on their selections.
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