Study Committee Preservation of the HOPE

Scholarship Program

Alexander M. WaldropPresident & CEO

National Thoroughbred Racing Association

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National Thoroughbred Racing Association

Membership includes:

• Racetracks

• Owners

• Breeders

• Trainers

• Horseplayers

• Affiliated horse racing and breeding associations

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Advantages of Horse Racing

• Highly entertaining, social activity

• Labor intensive agri-business

• Passionate fan base – everybody loves horses

• Challenging intellectually

• Prestigious ownership opportunities

• Environmentally friendly

• Beneficial federal legislation - IHA

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U.S. Horse Racing Metrics

• 50 million 50 million fans

• 7 million 7 million core fans who attend and wager regularly

• More than 60 60 Thoroughbred racetracks

• Nearly 90%90% of all money wagered is bet remotely on televised races

• More than 1,0001,000 off-track wagering sites

• Only U.S. sport to conduct legal online wagering, now a $3 billion$3 billion market

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HorseplayersNational Handicapping Championship

• Average age 5252

• Highly educated (21%21% graduate degrees)

• Affluent (average income $117,000$117,000)

• Inclined to travel and wager

• Attracted to the intellectual challenge

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Horse Racing Globally

• Global sport present in 6060 countries

• U.S. horse racing accounts for about 14%14% of global wagering

• U.S. a leader in race horse breeding worldwide

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Horse Racing Big Events• Triple Crown stronger than ever

– Attendance at the Triple Crown events was 392,193392,193 (including record KYD and PREAK)

– Handle on the Triple Crown was $413 million $413 million – NBC TV viewership for Triple Crown was 46.9 46.9

million million

• Strong race meetings coast to coast – Keeneland– Saratoga– Del Mar

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Horse Racing Big Events

• Breeders’ Cup World Championships

– 22 days, 15 15 races, $26 million$26 million in purses

– 100,000+100,000+ attendees– Best horses, trainers, and owners from

across the globe – Culmination of Thoroughbred racing’s

season– Often decides Horse of the Year and other

prestigious Eclipse Award categories

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Horse Racing Big Events

• Breeders’ Cup 2013 Economic Impact

– Total direct spending $39.5 million $39.5 million

– Total economic impact

• $64.9 million $64.9 million in business sales,

• 532532 full-time equivalent jobs, and

• $25.9 million$25.9 million in labor income, including indirect and induced impacts

• $4.8 million$4.8 million in state and local taxes

• Source: Tourism Economics study of 2013 Santa Anita, CA event

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Racing Industry Jobs

• Track employees

• Breeding farms

• Trainers

• Grooms/hot walkers/exercise riders

• Jockeys/Drivers

• Veterinarians

• Services and suppliers (e.g. farriers, feed)

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Economic Impact of Horse Racing Industry

• $11 Billion$11 Billion Wagered Annually Nationwide• $90 Billion$90 Billion worldwide

• 375,000375,000 horse racing jobs nationally

• $37 billion$37 billion in economic activity

• $1.9 billion$1.9 billion generated in tax revenue

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Economic Impact of Georgia Equine Industry

• ≈≈173K173K Georgia households own horses

• Contributes $868.7MM$868.7MM to Georgia Economy

• 6th6th most valuable commodity in Georgia

• All horses valued at $413MM$413MM

• Roughly 3.5%3.5% of all Georgia commodities.

• Source: GA Agricultural Commodity Commission for Equine (2008)

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Why Does Georgia Need Horse Racing?

• Georgia breeders and owners now raise their horses in

Florida, South Carolina or Kentucky

• Georgia racing fans are visiting racetracks in Kentucky,

Florida, Louisiana and elsewhere

• Atlanta is the largest metropolitan area in the U.S.

withoutwithout a racetrack (NYC, Los Angeles, Chicago,

Dallas, Philly, Houston, Washington, DC, Miami)

• All of these factors are costing Georgia jobs, All of these factors are costing Georgia jobs,

tourism and related tax revenuetourism and related tax revenue

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