The Growing Popularity of Cryptocurrency in Horse Racing Betting

By Hank Blaine • August 25, 2023

Horseplayers have begun to step onto the crypto wave. Cryptocurrencies provide advantages to horse racing betting enthusiasts that fiat currency doesn’t. In this blog, we study some of the reasons the cryptocurrency trend is hot with horseplayers.

Reasons Horseplayers are Turning to Cryptocurrencies

Takeout percentages are rising

Takeout is the percentage from each dollar bet on a horse. The specific racetrack determines the takeout.

As one might expect, the more popular the race, like the Kentucky Derby or Breeders’ Cup Classic, often the higher the takeout.

At Churchill, as an example, the takeout went up to 22% for the Pick 5. Churchill has lowered the takeout to 15%, but even at 15% it starts to get difficult for horseplayers to make money.

What this means is that the horses’ odds on the tote aren’t the true odds. Those are the odds accounting the takeout. Some tracks have gone all the way up to a 26% takeout on certain exotic plays.

Win, place, and show takeouts are typically 15% to 16%. The rise in takeout percentage is important because to account for the takeout, horseplayers must save money where they can. Utilizing cryptocurrencies to fund horse betting accounts is a good way to save money.

Horseplayers can’t afford fiat currency deposit fees

Takeout is the percentage from each dollar bet on a horse. The specific racetrack determines the takeout.

Utilizing fiat currency requires paying deposit fees. Deposit fees cut into profit. Horseplayers view deposit fees as a takeout add-on, meaning not only must horseplayers account for the takeout, but they must also account for deposit fees.

As one can imagine, the more deposit fees, the harder it is to profit betting on the ponies. So to get away from exorbitant deposit fees, horseplayers are turning to crypto, where they must pay a transaction fee of some sort to send crypto from their Coinbase or Cash App account to their racebook account.

However, the transaction fee is much less than percentages tacked onto fiat deposits. So for horseplayers, using crypto makes more sense.

Winning a single bet is difficult. So any monetary edge is a welcome edge

Takeout is the percentage from each dollar bet on a horse. The specific racetrack determines the takeout.

For horseplayers, any monetary edge is an edge the horseplayer requires. Winning a single horse bet is difficult. So any money saved is money earned.

How difficult is it to win a horse racing bet? Favorites often offer odds of 2-to-1. At 2-1, a winning bet returns $6 for every dollar wagered. If sports bettors could make a $4 profit off every $2 wagered, they’d be on cloud nine.

The odds on favorites tells us that finding the winning horse in almost any bet is difficult. If we add in the takeout tax, gambling taxes in general, and deposit fees, a horseplayer must be exceptional to turn a profit.

So for horseplayers, using cryptocurrency saves them money and saving money is earning money.

The trend of horseplayers turning to cryptocurrency will continue. Eventually, so many horseplayers will switch from fiat to crypto that cryptocurrencies will become the standard.