How Horse Racing Started an Industry Empire
All forms of betting and gambling, from the glittering lights of casinos on the Vegas Strip to casino sites with live real-time croupiers, can thank horse racing for paving the way for the gambling industry being as we know it today.
Both horse racing and gambling are activities that humans have taken part in for centuries and today are grouped into the category of gambling, but this wasn’t always the case. For a long time, horse racing was the exception to the taboos of gambling. It was a sport that the wealthy and elite participated in and was one of the few legal forms of gambling for decades.
How did this happen to two similar activities, and how did horse racing influence the gambling industry? Here, we’ll aim to answer just that. First, we’ll look at the origins and evolution of both activities and then at how horse racing transformed the gambling landscape.
History of Horse Racing
The roots of horse racing go back to ancient times and various regions of the world, from Greece to North Africa. The first recorded race with prize money was during the rule of King Richard I, also known as Richard the Lionheart.
The sport captivated royalty in the 1600s, leading to a close connection between the two. During this period, the kings of England and France were influential forces in shaping racing rules and attitudes towards the sport.
King Charles II of England formed The King’s Plates, a thoroughbred race, and the reputation of Newmarket as a premier horse racing region. King Louis XIV’s rule was reputed to be a time of prevalent horse racing gambling, with the King creating France’s rules and regulations around the sport.
This connection between royalty and horse racing is likely how this form of gambling avoided the scrutiny that games of chance would face during the 18th century.
History of Gambling
Beyond horse racing, gambling has existed since ancient times and may even predate written history. When it first gained popularity, it was a way to determine fates or outcomes for everything from land disbursal to criminal charges. Over time, it also became a form of entertainment.
In Europe during the 17th century, gambling became more organised and was even sanctioned by ruling bodies, with official gambling houses in operation. It was a generally accepted activity in society. However, by the 18th century, this began to change, with people and the church deeming it sinful or a societal ill.
Gambling held on to this poor reputation for several decades, but over time, it was considered just another form of entertainment, albeit an underground one, as it was prohibited for a long time.
The Influence of Horse Racing
Since both gambling and horse racing have occurred since ancient times, it may seem odd to consider one more influential than the other. However, there is a significant difference between gambling in the form of placing wagers on horse races and other games of chance: Horse racing led the charge as the first legal form of gambling in many parts of the world.
Horse racing was a separate activity from the perceived societal ill of other forms of gambling and held the approval of royalty and other influential figures. These factors allowed horse racing more freedom and flexibility in official regulations. Horse trainers, who played a crucial role in preparing horses for these races, were pivotal in maintaining the sport’s reputation and appeal, further distinguishing it from other forms of gambling.
In the UK, it was legalised and regulated in 1928 through the Racecourse Betting Act. In the USA, one of the first states to legalise horse racing, New York, did so in 1908. In Canada, it became legal after passing its Criminal Code in 1874.
Horse racing was one of the only legal forms of gambling in these countries for many years, but the situation began to evolve in the 1900s. The UK legalised gambling, such as casino gaming, in 1960, the USA did this in 1931, and Canada in 1985.
When gambling beyond horse race betting was being legalised, in many ways, it had a foundational framework from the regulations of horse betting. Horse racing was subject to restrictions and regulations detailing the participants, timing, locations, and methods of legal betting, and aspects of these could be applied to other forms of gambling. For instance, only individuals over a certain age were allowed to wager, and there were dedicated spaces for gambling activities.
Wagering on horse races provided evidence of the public’s interest in gambling beyond underground options, which was persistent. This interest showed that other forms of gambling could benefit governments if legalised, giving them control over gambling operations within their jurisdictions (reducing criminal activity) and increasing revenue.
In summary, the legal and social acceptance of horse racing betting was the first step in building the gambling industry empire. It provided the structure and pathway for other popular forms of gambling we have access to today to become regulated in the decades, and near century, to follow.
Today’s Gambling Industry
Since the legalisation of other forms of gambling, the industry has become substantial. In the UK, it is expected to generate revenue of £11 billion. This number includes revenue from horse racing betting, online gaming, land-based casinos, sports betting, and the national lottery.
The industry has become robust and inclusive of many different games of chance and continues evolving and responding to societal interests and concerns.
Conclusion
When we think of gambling, the first thing to come to mind is often casino gaming. Because of this, it’s easy to forget that if horse racing hadn’t laid the groundwork for gambling regulations and social perceptions, our gaming industry would look vastly different today.