How a Trump Tax Break Rescued Horse Racing

Horse racing, long buffeted by concerns over animal safety, scandals and competition from online gambling, is seeing a revival. Owners spent nearly $1.5 billion on racehorses in North America last year, a nearly 21 percent increase from 2024, and the Keeneland September Yearling Sale set a global record with $531.5 million in total sales, up nearly 24 percent.

The sport has also tightened rules and safety: the Horseracing Integrity and Safety Authority was created in 2022, and more than a billion dollars have been invested in new racetracks in New York and Maryland and upgrades to tracks in Kentucky. A tax provision in President Trump’s One Big Beautiful Bill has been a major catalyst.

The bonus depreciation lets businesses immediately deduct the full cost of certain assets and now applies to racehorses, improving cash flow and making them an attractive investment. “There’s a lot of money in the world,” said Boyd T. Browning Jr., and the change has made it easier to spend.

United States, New York, Maryland, Kentucky

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