Big Beautiful Bill provides shot in arm for US horse racing
Horse racing in the United States is experiencing a renewed surge in investment, driven by a combination of regulatory reforms, tax incentives and tightening supply dynamics.
Recent sales data highlight the shift. Owners spent nearly $1.5 billion on racehorses across North America last year, marking a significant year-on-year increase.
Major auction houses, including Keeneland and Fasig-Tipton, reported some of their strongest results in more than a decade, with record turnover recorded at key yearling and breeding stock sales.
MORE: Horse racing 2026
Industry observers point to several factors underpinning the growth. The introduction of enhanced safety and integrity measures, led by the Horse Racing Integrity and Safety Authority, has helped restore confidence following years of scrutiny over animal welfare and rule enforcement.
A major catalyst has also been the expansion of bonus depreciation rules under recent federal tax legislation, rolled out when the Republicans “Big Beautiful Bill” was passed. The provision allows buyers to immediately deduct the full purchase cost of eligible race horses, reshaping the economics of ownership and breeding.
At the same time, a reduced foal crop has intensified competition for quality bloodstock, further pushing up prices.
As an example of the increased investment in horse racing, Keeneland’s two-day January Horse of All Ages Sale was the best since 2008, with a total of 700 horses sold, at a total cost of $53,580,300. In contrast, last year’s sale saw 724 horses sold for $35,225,900.
“The take home for me was the top 25 horses went from 18 different consignors to 24 different buyers,” Keeneland Senior Director of Sales Operations Cormac Breathnach said.
“That’s always very pleasing to have the strength and depth at the top of the market like that. The top 13 yearlings were all by different sires, so there’s a lot of popular bloodlines and activity around those choice lots.”
