Horse racing has been a sport for a very long time. You might think that after all this time, there is only one way to get rich with horses, but there are actually three: betting, owning horses and breeding them.
You can get rich by betting on horses, but if you want a safe investment, it might not be the best choice. Even though betting on, breeding, and owning racehorses can make some people a lot of money, it’s a risky business.
The business of horse racing is a competitive one. Many people want to get rich with horses, but it takes more than money to be successful. It also takes smarts and hard work. We’ll give you some important tips on how to make a lot of money from horse racing.
Earning income through horse racing
Learning as much as you can about racehorses and the horse racing industry is the greatest strategy for entering this high-risk, high-reward industry; knowledge is your best ally.
Jockeys and trainers are among the best sources of knowledge since they can explain how a horse is performing, why one didn’t do well, and whether a horse simply lacks the talent to be successful.
Racehorses were the source of great wealth for many people, including Bob Baffert, Michael Tabor, and Walter Merrick, to name a few.
Seven Kentucky Derby winners under his tutelage, among other accomplishments, make Bob Baffert a successful horse trainer and owner. He is thought to be worth $30 million.
Before becoming a well-known horse owner and businessman, Michael Tabor was a bookmaker and gambler. He often ranks among the wealthiest people in Britain, and his present net worth exceeds 150 million dollars.
Breeding quarter horses for racing was how Walter Merrick became wealthy. He started out as a ranch hand before becoming well-known for being the breeder and owner of All-American futurity champion Easy Jet. In 1980, he sold the stallion to a syndicate for $30 million.
I was recently asked by a close friend if anyone could profit from horses. I hope my old joke I told him in response to his query:
Q: ‘How can one get somewhat wealthy in the equine industry?’
A: ‘You begin with huge money’
Making money with horses is notoriously difficult, especially when you’re betting, racing, owning, or breeding them. Maintaining horses is costly, dangerous, and demands a great deal of knowledge, perseverance, and large resources to manage losses. Similar to other forms of gambling, betting on horses is subject to ups and downs, generally with more downs than ups.
Despite this, there are numerous success stories in this area. People have made and are still making considerable money from horses; in fact, some have even achieved millionaire and billionaire status!
In this article, we will discuss:
- Can you become wealthy by making horse racing bets?
- What is the horse racing wager that pays out the most?
- Can owning racehorses make you wealthy?
- Can you become wealthy by raising racehorses?
- How much money is made from horse racing?
Can you become wealthy by making horse racing bets?
People have made a lot of money betting on horses. But you have to learn a lot about jockeys and horses. You need to understand how betting works and be ready to deal with close calls and losses.
To make money betting on horses, you have to be able to deal with tough losses without letting them affect your decisions later in the day.
People shouldn’t forget that streaks of winning and losing are a normal part of betting. These streaks can happen because of good or bad luck, good or bad decisions, good or bad analysis, and other things.
Aside from what you’ve been through, you’ll hear story after story at the tracks about tough losses and close wins. You might also hear about people who have done well. Most people, unfortunately, only think about their mistakes and bad luck and then give up.
To sum up, here’s what you need to know to have a good time betting at the races:
- Before the races and betting start, you should be ready.
- Get your work done. Learn as much as possible about the horses and jockeys. There are betting systems for horse races that show you how to pick and guide your choices. (However, these are not magic formulas.)
- Don’t change the way you bet.
- Expect to have bad luck every now and then.
- Learn from what you did wrong.
What is the horse racing wager that pays out the most?
Before we can figure out which bit is the best in horse racing, we need to talk about the different kinds of bets that can be made. I wrote a detailed article about the different types of bets in horse racing that you should read if you want to learn more.
Straight single win
Straight wagers are easy. You pick a horse you like and bet that it will come in first. You win money if the horse wins. If not, you’d lose money.
For a win-and-place bet, you choose a horse you think will come in first or second (or as governed by the terms of the race). Here, the stakes are doubled, but the payout is less than a straight win.
For you, the ticket holder, to win money, the horse has to finish first, second, or third.
This type of bet is made on more than one horse in different races. So you can back two horses in a double, or you can pick three horses in a treble.
The most profitable and risky horse racing bets are the Accumulator and other multiple horse bets (like pick 6). To win an Accumulator bet, you have to pick the winners of six races correctly before the first race starts.
Also, the winnings from the first race are put on the horse chosen for the second race, and so on, until all of the winnings from the first five races are put on the last horse.
The accumulator bet is, of course, the most profitable way to bet on horse races. Keep in mind that it is still hard to win here because it is hard to find one winner, let alone six. But you can pick the winner if you have the skill, do your research, and use a good horse betting system to help you.
Can owning racehorses make you wealthy?
Owning racehorses can be a very profitable business, but it’s not as easy as it might seem. When you own racehorses, there are many things to think about, like how much it costs to feed and house them and how much money you could win or lose in a single race.
But if you are willing to put in the time and work, owning racehorses can be a very rewarding experience. But it’s risky, and a person with experience will tell you that only jockeys and veterinarians can actually make money from them.
To make money in horse racing, you need luck and the ability to see the future. About 7.2 million thoroughbred horses were raced in 2018. If everyone won their fair share of purses, it makes sense that all the owners would lose.
Even though your chances of winning may be low, the good news is that you won’t be wasting money if you buy a horse. For you have a silent cost-sharing partner, too: the IRS.
If you own a racehorse, you can use it as a tax shelter. You can also write off the money you lost training and racing a horse (but specific rules apply like your other income should be a business income, etc.).
If the numbers are correct, only 2% of horses won $10,000 or more, and 17% of horses only won $25,000. This is about how much it costs to board and train a racehorse for a year. In short, it’s not likely that this business will make money or even break even.
I just bought a Thoroughbred filly who is three years old. She is fast during morning workouts, but she hasn’t shown much promise or won any money in races. I’m still hoping she’ll change and start paying her way.
I also train five horses who are two years old. Two of them are doing really well, but it’s too soon to tell if any of them will be fast enough to win races. You need luck and fast horses to make money.
Can you become wealthy by raising racehorses?
Breeding racehorses is not a way that everyone can make money. Only a lucky few owners of racing stallions have made millions by putting them together. How much money you can make will depend on how many mares you can get to come to you.
Early in his career, a stallion’s racing record and pedigree will determine how many broodmares he will breed. But if he has a lot of winners, his stud fee will go up and his services will be in higher demand.
For example, the owner of the Irish Stallion Galileo charges $700,00 for each mating. Galileo made a lot of winners, so his owners can charge this much because of that. One of his children has also grown up to be a valuable stallion, and his owner charges $225,000 per mating.
Tapit, a horse, earns $300,000 per stud, and his owner makes almost $12 million a year. Breeders also make money by selling their offspring and by charging fees to other breeders.
One of my friends sells his yearlings at the annual yearling sale in September. Sometimes he makes money, but most of the time he only makes enough to pay his bills.
But he makes most of his money from fees paid by breeders. Breeders’ fees are money that goes to the people who raise racehorses from foals. Most of the time, it’s 25% of what the horse makes. This money doesn’t come from the purse, but from a separate account set up to help the racing industry.
How much money is made from horse racing?
I’m sure you know by now that there are many different ways for horse owners to make money from racing.
It all depends on how many horses you own, how much of each horse you own, and how much you have at stake in the business as a whole. Prize money for each race will also depend on the types of races your horse runs in (flat racing, jump racing, etc.) It also depends on where your horse comes in when it wins. You also have to pay the jockey and the person who trains your horse.
Here is a list of the people who win money in horse racing:
- About 80% of the money goes to the owner.
- About 10% plus a “mount fee” goes to the jockey.
- 10% goes to the trainer.
Even the marketing managers of Horseracing boards tell people that owning a racehorse is not a good way to invest because of the risk and payouts.
You can always use your horse as a stud, which could help you make good money if your horse is a winner. You could also sell your horse(s), which would also bring in a good amount of money.
Who owns a horse with the most money?
Alain and Gerard Wertheimer, who is also known as the Chanel brothers, own more horses than anyone else. Their estimated net worth is £ 24,714,592,500.
Is it a good idea to buy stock in a racehorse?
It depends. Buying shares in a racehorse gives you a lot of benefits, and if the horse wins, you will definitely get your winnings.
The best thing about being a part-owner of a racehorse is that you can go to the track on race days, take pictures with your horse, and don’t have to call the vet at 5 a.m. if your horse gets sick.
How much does a racehorse cost to own?
A thoroughbred can cost anywhere from $10,000 to $500,000 to buy, and raising one will cost at least $45,000 to $60,000 a year.
Who makes the most money in the business of horse racing? The music? The people who are betting? Who owns the horses? The riders?
The answer is that only the really good breeders who make the best horses and the race tracks make money. Only 3 percent of people who own thoroughbred horses make enough money to live on.
So why would you want to buy a racehorse? It’s because they love the sport. People who buy racehorses either have a lot of money or do something else to pay for their hobby. Horse racing is based on betting, and like all betting sports, it has risks and ups and downs.