The Modern Racing Landscape and the Racetrack Wagering Market: Components of Demand, Subsidies and Efficiency

34 Pages Posted: 1 May 2012  

Ramon P. DeGennaro

University of Tennessee, Knoxville - Department of Finance

Ann B. Gillette

Kennesaw State University - Michael J. Coles College of Business; Federal Reserve Banks - Federal Reserve Bank of Atlanta

Multiple version iconThere are 2 versions of this paper

Date Written: December 6, 2011

Abstract

Horse racing is an important industry throughout much of the world, and gambling has been increasingly relied on to provide financial support for beleaguered state governments. Technology has changed the way track patrons bet, with the vast and increasing majority of total bets being made away from live racing. The menu of wagering options continues to grow with a wide variety of exotic bets, futures wagering markets, program betting, and on-line betting venues becoming more prevalent. We know a fair amount about the determinants of wagering volume, but our knowledge of the demand for wagering on these different types of bets within and across venues remains in its infancy. We review the available research on the components of wagering demand, the effect of government subsidies on wagering volume, and the efficiency of the betting market. We also describe several new issues that continue to affect the racing landscape.

Keywords: racing, gambling, subsidies, efficiency

JEL Classification: L83, E62, G10, G19, H00

Suggested Citation

DeGennaro, Ramon P. and Gillette, Ann B., The Modern Racing Landscape and the Racetrack Wagering Market: Components of Demand, Subsidies and Efficiency (December 6, 2011). Available at SSRN: https://ssrn.com/abstract=2048975 or http://dx.doi.org/10.2139/ssrn.2048975

Ramon P. DeGennaro (Contact Author)

University of Tennessee, Knoxville - Department of Finance ( email )

423 Stokely Management Center
Knoxville, TN 37996
United States
865-974-1726 (Phone)
865-974-1716 (Fax)

Ann Brewer Gillette

Kennesaw State University - Michael J. Coles College of Business ( email )

1000 Chastain Road
Kennesaw, GA 30144
United States

Federal Reserve Banks - Federal Reserve Bank of Atlanta

1000 Peachtree Street N.E.
Atlanta, GA 30309-4470
United States

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