How Horse Racing wagering differs from sports betting
Published:
Apr 4, 2025
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10:38 a.m.
ET
Key Points
Gambling on horse racing is seen as a unique form of sports betting, but is legally and structurally distinct from traditional sports wagering.
Historically, betting on horse racing has used a pari-mutuel system, while traditional sports betting uses fixed odds.
Horse racing has been legal for decades, since well before sports betting was legalized. When sports betting was banned from 1992-2018, horse racing betting remained legal as an exception in many states.
Whether betting on horse racing or another sport, the risk of gambling addiction is the same. But nowadays, specialized support is available.
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EDITOR’S NOTE: Birches Health is a specialized provider of gambling addiction treatment nationwide. Care is available virtually from the comfort of home and is covered by insurance. Understanding how to bet legally and responsibly is critical in aiming to reduce the chances of developing a gambling problem. The goal of this article is to help potential bettors do so in a smart, sustainable and healthy manner if they choose to wager.
Horse racing wagering and sports betting share similarities as forms of gambling, but they differ significantly in legality, odds structures and regulatory history. Horse racing has long enjoyed legal status in many states, primarily due to historical exemptions, while sports betting only gained widespread legalization after the repeal of PASPA in 2018. The way bets are placed and calculated varies between the two, with horse racing traditionally using a pari-mutuel system (more on that below) and sports betting relying on fixed-odds markets.
For those new to either form of betting and with the Triple Crown races nearing, understanding these distinctions is key. This article explores the differences between horse racing wagering and sports betting, covering legal frameworks, age restrictions, betting structures and the role of major sportsbooks in both markets.
Legality: State by state differences
Horse Racing
The legality of horse racing wagering and sports betting varies significantly across the United States. While the repeal of PASPA in 2018 allowed states to legalize sports betting individually, horse racing betting has long been permitted in many states due to historical carve-outs. Some states allow both forms of wagering, while others permit only one.
Here is a full list of the states with in-person legal horse racing betting:
Alabama*, Arizona, Arkansas, California, Colorado, Connecticut*, Delaware, Florida, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri**, Montana, Nebraska, New Hampshire, New Jersey, Nevada, New Mexico, New York, North Carolina*, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island*, South Dakota**, Tennessee, Texas, Virginia, Washington, West Virginia, Wyoming
*There are no physical horse racing tracks in the state, but there are OTB (“Off-Track Betting”) simulcast locations that allow live horse racing betting.
**The horse racing tracks in the state are temporary, only set up at certain county fairs. There are no permanent horse tracks in the state, but OTB simulcast locations are available.
A total of 42 states have online horse racing betting:
Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas (in-person), Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming
The states that do not have horse wagering options are:
Alaska, Georgia, Hawaii, Mississippi, Nevada, South Carolina, Utah*
Note: *Nevada does not offer traditional horse racing betting but has other horse racing-related gambling options
Sports Betting
To compare, as of April 2025, sports betting is legal in some form in 38 of the 50 states, plus Washington, D.C. and Puerto Rico. However, only 30 of those states allow online betting. Here’s a breakdown of where you can legally bet on NHL games:
Online and Retail Sports Betting: Arizona, Arkansas, Colorado, Connecticut, Florida, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Missouri (pending), Nevada (requires in-person registration), New Hampshire, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, Tennessee (online only, no retail), Vermont (online only, no retail), Virginia, Washington, D.C., West Virginia, Wyoming offer both online and retail (in-person) betting options.
Retail Only: Delaware, Mississippi, Montana, Nebraska, New Mexico, North Dakota, South Dakota, Washington and Wisconsin require you to visit a physical sportsbook to place bets.
No Betting Allowed: In 12 states, including California, Texas and Georgia, sports betting is not yet legalized, meaning fans in those areas will need to wait for potential future legislation.
Age restrictions
The minimum age requirement for placing bets on horse racing and sports betting differs by state. Generally, most states set the minimum age at 18 for horse racing wagering, while sports betting often requires bettors to be at least 21. However, in some states, the age requirement is the same for both forms of gambling, aligning at either 18 or 21.
Here are the age restrictions per popular horse racing betting platform:
TwinSpires
States Available: AL, AZ, AR, CA, CO, CT, DE, FL, ID, IL, IA, KS, KY, LA, MD, MA, MI, MT, NH, NY, ND, OH, OK, OR, PA, RI, SD, TN, VT, VA, WA, WV, WI, and WY.
Age Requirement: 18+ in most states; 21+ in IA and WA.
FanDuel Racebook
AR, CA, DE, ID, FL, MN, MT, NH, NM, ND, OR, RI, SD, WA (FanDuel Racing). AZ, CO, IL, IN, KY, LA, MA, MD, MI, NY, OH, PA, VA, WV, WY (FanDuel Sportsbook).
Age Requirement: 18+ in most states; 21+ in AZ, IN, IA, ND, and WA.
DraftKings Horse
States Available: CA, CO, FL, IL, IN, IA, KY, LA, MD, MA, MN, MN, NY, OH, OR, PA, VA, WA, WV, and WY.
Age Requirement: 18+ in most states; 21+ in IA, IN, and WA.
Worried about your betting? Connect with Birches Health today by clicking here, calling 833-483-3838 or emailing help@bircheshealth.com
Legal history of betting on Horse Racing
The roots of modern legal betting on horse racing can be traced back to the late 19th century when Leonard Jerome introduced pari-mutuel wagering to America by importing betting machines from France. By 1871, American horse race attendees could take part in pari-mutuel betting for the first time.
The 1930s marked a turning point for legal horse race betting as states embraced pari-mutuel wagering as a reliable source of revenue during the Great Depression. The latter half of the 20th century saw further expansion, particularly with the introduction of off-track betting (OTB) in New York in the 1980s.
A major legal milestone came in 1978 with the passage of the Interstate Horseracing Act (IHA), which permitted tracks to broadcast races across state lines and accept bets from out-of-state customers. The IHA ultimately transformed horse racing into a more widely distributed betting product, as bettors could now wager on races taking place across the country without having to be physically present at a track.
While the IHA provides a federal framework, horse racing betting is regulated at the state level. Even still, when PASPA (Professional and Amateur Sports Protection Act) was passed in 1992, essentially restricting all states but Nevada from legalizing sports betting, horse racing betting remained legal, standing as an exception. This was largely due to wagering being a core part of the sport, which depends on it to sustain the industry. As a result, horse racing betting operated legally in many states decades before the modern wave of legalized sports betting with the repeal of PASPA in 2018.
As horse racing continues to adapt to new technological advances and face regulatory challenges, the legal framework governing betting will likely evolve further. The Horse Racing Tracks industry market report found that US horse racetracks clear over $3 billion in revenue on average every year.
Betting structure: Pari-mutuel wagering vs fixed odds
Pari-mutuel wagering
Pari-mutuel betting was first introduced in 1870 by Parisian businessman Pierre Oller and is the traditional wagering system used in horse racing. Most simply, pari-mutuel betting pits bettors against each other instead of against a sportsbook.
In this system, the bettor buys a ticket on the horse they wish to back. Money for each type of wager (win bets or an exacta bet for example) is then placed into individual pools, and the odds shift dynamically based on the amounts wagered in total and on each individual horse. The pool is finalized at the start of the race, which means the odds can change until the race begins. The house takes a percentage of the pool, no matter how large it is, and the remaining funds are distributed among winning bettors. This differs from fixed-odds sports betting, where your odds and potential payout are locked in when a bet is placed.
Outside of horse racing, pari-mutuel betting is most notably present in dog racing, jai alai and a handful of other niche sports.
Fixed-odds betting
Fixed-odds betting is the standard model for sports betting, where bettors lock in odds at the time of their wager. This means if you bet on a football team’s moneyline bet at a price of +200 (2/1) odds, those odds remain unchanged regardless of shifts in betting trends.
Historically, fixed-odds betting was absent from horse racing, but today some sportsbooks now offer fixed-odds markets on races, in part to help bridge the knowledge gap for sports bettors trying out horse racing betting for the first time. This also allows bettors to secure predetermined payouts rather than relying on fluctuating pari-mutuel odds. Fixed-odds horse racing betting is currently available in select states and through certain online platforms.
Do FanDuel, DraftKings and other sportsbooks offer betting on horse racing?
As mentioned earlier in the article, major sportsbooks - including FanDuel and DraftKings - now offer horse racing betting.
FanDuel has its own horse race betting platforms that operate in specific states. But in many states where sports betting is legal, you can bet on horses in the FanDuel Sportsbook app through the FanDuel Racing tab.
If you prefer DraftKings, DK Horse, a separate app, is likely your path to betting on horse racing. DK Horse is live in 20 states. Other sportsbooks have partnerships with racing operators, allowing users to place wagers through their platforms.
Is betting on horse racing a form of sports betting?
Since horse racing betting involves wagering on a sport, it is often seen as a specific form of sports betting. However, it is legally and structurally distinct from traditional sports betting.
The pari-mutuel wagering system and longstanding regulatory differences separate horse racing from fixed-odds sports betting. Despite some sportsbooks incorporating horse racing, it remains its own category of wagering.
Gambling Addiction treatment options
Problem Gambling is a concern for both horse racing wagering and sports betting. Treatment options include inpatient and outpatient programs, depending on severity and personal preferences. If you or someone you know is struggling with horse racing gambling addiction, specialized resources are available.
Birches Health has a nationwide team of expert licensed professionals who are certified to treat problem gambling, including compulsive betting on horse racing. Care is conducted virtually, which allows for scheduling flexibility and convenience without travel from the comfort of home. Costs can be covered fully or in part by insurance and/or state funding, depending on your plan and location. To connect with Birches today, you can:
Call 833-483-3838
Email help@bircheshealth.com
