How Online Betting is Reshaping Ontario’s Horse Racing Industry

Ontario stands as one of Canada’s major hubs for horse racing, supporting around 23,000 jobs and home to 15 racetracks. However, with the rapid rise of online betting, industry stakeholders are increasingly concerned about the future of traditional horse race betting. Can this historic sector adapt to the digital age, or is it at risk of being left behind? Let’s examine the issue by turning to the facts.

Financial struggles and rising competition

Bill Ford, Vice President of Woodbine Entertainment Group (WEG), notes that horse racing revenues are under mounting pressure. The main reason is the rise of online casinos, which are drawing attention – and money – away from traditional betting. Even with a $5.7 million increase in prize pools over the past two years, it’s not enough to offset the growing costs faced by race participants.

Historically, horse racing was funded through the pari-mutuel (or totalizator) system, where racetrack revenue and prize money came from pooled player bets. But things changed drastically after Ontario legalized online casinos and sports betting in 2022. The digital gambling boom has reshaped the market. Now, placing a bet no longer means heading to the racetrack – a smartphone is all it takes.

Online platforms offer several clear advantages:

• Convenience – Players can gamble anytime, anywhere.
• Variety – Slots, poker, sports betting, and even virtual dog and horse racing.
• Aggressive marketing – Despite regulations and restrictions on promotional ads, online casinos continue to attract more and more users.
• Captivating experience – Bookmakers tap into psychological triggers – fast outcomes and frequent small wins create quick dopamine hits.

In contrast, traditional horse racing demands more involvement: studying the horses, travelling to the track, and waiting for races to unfold. For modern audiences used to instant gratification, this process can seem too slow and complicated.

As mentioned in a previous article, Canadian bettors are shifting toward easily accessible gambling options. Where they once might have spent an entire afternoon at the racetrack, today’s players prefer placing quick wagers through an app and moving on.

Great Canadian Casino Resort Toronto falls short of expectations

When the casino opened next to Woodbine Racetrack in 2023, it was hailed as a potential game-changer for Ontario’s struggling horse racing industry. The $1 billion mega-complex – with its hotel, restaurants, and entertainment venue – was expected to become a major revenue stream. Woodbine Entertainment Group anticipated that a share of gaming profits and increased foot traffic would help sustain the racetrack. But a year on, those hopes have largely faded.

The biggest challenge? Low attendance. Despite being Canada’s largest casino, the resort has struggled to attract enough players to compensate for declining horse racing revenues.

Analysts point to several key factors:

• Competition from online casinos. Players now prefer the convenience of gambling from home.
• Economic pressures. With inflation and rising living costs, many Ontarians have cut back on entertainment spending.
• Poor integration between the casino and racetrack. Casino visitors rarely engage with horse racing, while racing fans aren’t necessarily drawn to slot machines.

On top of that, the financial support the casino was expected to provide hasn’t materialized. Woodbine does earn money from land leases and facility maintenance fees, but it’s not enough to make up for falling betting revenues. This shortfall highlights a broader trend: Ontario’s gambling market is moving decisively online, leaving traditional casinos and bookmakers – and consequently, horse racing – struggling to adapt. We’ve covered these shifts in detail here.

Consequences for Ontario’s horse racing industry

The challenges facing the industry go far beyond short-term financial strain. This is a full-scale structural crisis – one that threatens the sport’s very survival. The rise of online gambling has triggered a domino effect, reshaping the horse racing landscape in profound ways.

For decades, provincial racetracks have served as community gathering spots, but many are now at risk of closure. Smaller venues like Fort Erie and Ajax Downs, which depend heavily on betting turnover, are particularly vulnerable. Some estimates suggest that up to one-third of Ontario’s racetracks could shut down within five years. The consequences would be severe: mass layoffs not only at racetracks but also in associated fields like horse training or veterinary care.

The cultural loss would be just as profound. Iconic events like the King’s Plate – North America’s longest continuously run sporting event, dating back to 1860 – are now under threat. Traditions passed down through generations, from family outings at the track to rural racing fairs and youth riding programs, risk fading into history along with the industry’s physical infrastructure.

Finally, the financial consequences of the crisis create a vicious cycle. As betting declines, prize pools shrink, making horse ownership less viable. This discourages participation, reducing the quality and excitement of races, which in turn drives away even more bettors.

Now, the industry is facing two possible futures. One is slow decline and eventual obscurity. The other is a bold reinvention, marked by:

• Digital transformation – Launching mobile betting platforms with gamified experiences to attract younger audiences.
• Modernized event formats – Blending racing with music festivals and other entertainment to create more dynamic experiences.
• Policy support – Introducing legislation to redirect a portion of online gambling revenues toward preserving traditional sports like horse racing.

This is more than a crisis – it’s a defining moment. Without decisive action and systemic reform, horse racing in Ontario could become a niche interest, enjoyed by only a small circle of enthusiasts within the next decade.

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