Dollars & Sense: Texas-Sized Losses
By Frank Angst
Since the state of Texas turned its back on more than $160 million in simulcast handle for its Thoroughbred races by refusing to allow oversight by the Horse Racing Integrity and Safety Authority, its purses have declined, breeding activity has dwindled, and sales numbers have plummeted.
It's a sad state of affairs, especially since the state approved $25 million for Thoroughbred and Quarter Horse racing in 2019. When that money kicked in beginning in 2020, it provided the desired jolt for all aspects of the industry. But when Texas chose to regulate safety and integrity (medication and banned substances) at the state level rather than through HISA, that decision had the opposite effect.
Not long ago, the industry had reason for optimism in Texas. In this column space just over five years ago, I noted how the state's financial commitment to Thoroughbred racing and breeding was paying dividends. In 2021, Sam Houston Race Park reported an all-sources handle of more than $96.4 million at its 43-day meeting—more than twice the $41.3 million wagered at a 32-day meet in 2019. That same year, Lone Star Park reported a merged handle of more than $81.3 million, its highest total since 2006.
That would all change in the summer of 2022. The Interstate Horseracing Act gives HISA its big stick to encourage participation from racing jurisdictions: cutting off interstate pari-mutuel wagering for non-participants. Because Texas chose not to join HISA, out-of-state wagers on its races ended.
At just over $10.3 million, Lone Star's handle this year was about an eighth of what it was five years ago. On-track handle at Sam Houston this year was just under $3.4 million—after total handle surpassed $96.4 million in 2021. Sam Houston's signal was finding an audience in 2021 as that $96.4 million in handle was up from $41.3 million in 2019.
Industry impact followed. From 2021-2025, purses for Thoroughbred races in Texas are down 19% to $21,476,800.
Just a few years ago, a financial boost from Texas lawmakers seemed to fuel soaring confidence at sales. Year-over-year prices for Texas-bred yearlings in 2021 skyrocketed 239% to more than $1.9 million in gross sales. Gross sales peaked in 2022 at more than $2.3 million, but after the decision not to go with HISA, returns declined in 2023, 2024, and 2025. The 813,100 gross sales total in 2025 is down 65% from 2022.
Negative trends have also continued in breeding. While a number of states have seen declines in Thoroughbred breeding numbers in recent years, the reduced pari-mutuel wagering on state Thoroughbred races certainly has played a part in just 230 mares being bred in Texas in 2025, a 48% decline from 2021; a 2024 foal crop of 284, down 26% from 2020; and a 65% decline in stallions in the state from 99 in 2020 to 34 in 2025.
With first-rate racetracks in the Dallas-Fort Worth area (Lone Star Park) and in Houston (Sam Houston Race Park), plus plenty of land and a love of the horse, the racing industry has always seen potential in Texas. But after a few years of appearing to turn the corner, it has now contributed to national declines in handle and breeding activity.
The biggest shame of all is that the decision not to join HISA and cut off interstate wagering on its races followed on the heels of state lawmakers committing money to the industry, which appeared to be having the desired outcome. The decision to go its own way rather than join HISA has wiped out that progress, and then some. As the industry looks to gain in handle, purses, and breeding activity, getting Texas back on track is crucial.
Comments