If you think that owning racehorses is a venture only for the gentry, you might want to think again. According to The Telegraph, there are at least 8,000 racehorse owners in the United Kingdom. Apart from the wealthy and affluent, the middle class and even the ordinary citizens are investing on racing horses in the country.
As per The Jockey Club, the thoroughbred industry grew by $1.1 billion in just three years! Most of this progress can be credited to on-site gambling, where racetracks have installed more slot machines and table games; and online gambling, thanks to bookmakers and bookmakers free bets.
In the recent Forbes’ list of world billionaires, 14 businessmen who are engaged in horse racing, breeding and auctioning were included in the annual roll. If you want to be like them, maybe you should start investing your money in this industry. Here are some reasons why you should do so:
1. Offers lucrative payout
In the Cheltenham Festival alone, a total of £4 million worth of prizes were up for grabs. It included the coveted Gold Cup which is worth £575,000. While in the 2016 Dubai World Cup, a whopping $10 million prize money was devoted for the feature race.
2. Horse racing events generate jobs
It is common for sporting events to attract crowds, thereby generating more jobs. In the case of the Cheltenham Festival in the United Kingdom, more than 200,000 horse race enthusiasts gathered for the event. This translated to additional 5,000 workforce. Food items, souvenirs and alcoholic drinks were also sold in the event. In fact, over 10,000 bottles of champagne were sold like hot cakes.
3. Lets you experience a different kind of thrill
Attending horse racing competitions and watching your thoroughbred goes in for the gold will definitely make your spirits soar. There’s something about the match that’s stimulating and exciting at the same time.
4. Makes you earn more when you sell your thoroughbred
A good example is Mike Tindall’s £12,000 thoroughbred. The horse’s value ballooned to £200,000 in just a short time after winning the Welsh National.
Just like any business investment, owning a racehorse has its ups and downs. Since it is not a regulated investment, when you come off second-best, you’ll lose money and you can’t fight it back.
The major stumbling block of horse racing as a business is the finances. If you want to be a solo proprietor, you should have deep pockets for a starting capital that you can put into upfront. Alternatively, you can make a group investment and share the capital costs with other people. Moreover, since horse racing is an “animated roulette”, this investment offers no solid promise that you will make hefty returns from this.