As to why racing hasn’t been able to better leverage LEGAL internet wagering: the 3 causes you identified are definitely factors.

However, a fundamental reason may have more to do with the sport’s overall lack of popularity compared to other major sports.

The key to growing handle isn’t getting horseplayers to migrate from in-person wagering to online wagering, but using legalized internet wagering to attract newcomers to the sport; i.e., those currently betting sports and playing poker online (illegally).

It’s yet another irony of horse racing; Americans are betting untold hundreds of billions of dollars a year on pro and college football, pro and college basketball, and baseball illegally, while racing is getting about $12-14B a year bet legally (combined online & in-person).

The reason seems simple enough, people bet on things they understand – not the best game. Everyone knows how to play basketball and football and you don’t need a racing form to figure out the point spread.

And while takeout rates are a pain in the butt, it’s not stopping people from betting billions on state lotteries which make racing’s bite look like the deal of the century. In the casino, the craps table offers the best odds (and I think the most fun to play), but then why are so many people playing slots and roulette?

Maybe because the lottery, slot machine, and popular sports are so much easier to grasp.

So the industry needs to figure out how to make racing popular again and more accesible for the average person.

I think it’s possible. At least I hope so because I’ve personally spent a lot of time and money trying to crack this nut .

Thanks for another great post. This may be the best blog on horse racing IMHO (including my own!).