Document Type

Article

Publication Date

3-2024

Department

Equine Industry

Abstract

The Commonwealth of Kentucky currently has 5 thoroughbred racing tracks and 3 harness racing tracks (Kentucky Horse Racing Commission 2023 and Mint Julep Louisville 2021). As Table 1 below shows, the industry employees roughly 7,000 people (direct jobs), and these jobs annually support another 2,000 jobs or so throughout the state. These 2,000 jobs are jobs that are provided by the suppliers to the horse race tracks (indirect jobs) and jobs that are created by the spending of the race track employees and the employees of suppliers on food, housing, transportation, and clothing by vendors and retailers throughout the state (induced jobs). The multiplier shows that for every 100 jobs that exist in the horse racing industry, another 29 jobs are supported in other industries. The direct jobs generate in 2023 dollars around $254 million in payroll (direct payroll), and these in turn support another $111.5 million in payroll among race track suppliers and other businesses in the state such as retailers, homebuilders, etc. (indirect and induced effects). Every $100 in horse racing payroll supports another $44 in payroll in related industries according to the multiplier shown. With regard to state domestic product or output/revenues, the tracks create around $769 billion in direct revenues/output while their suppliers and supported businesses contribute approximately another $361 million in domestic product (indirect and induced effects). For every $100 generated by horse racing, another $47 dollars is supported in the Kentucky economy on average. As of 2022, Kentucky state gross domestic product (GDP) is estimated to be $259 billion (US Bureau of Economic Analysis 2023).

Comments

This is the pre-print version of the article to be published at a later date.

ORCID

0000-0003-2453-1407

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