What are the benefits of investing in a race horse?

Welcome to Fluther. Interesting question. People who own race or show horses have a different cultural lifestyle. There is a whole culture around the track that’s appealing and people want to be part of it.

Just as betting on horses is gambling, investing in race horses is also a gamble. But then again, so is living off your investments only. Many people are attracted to risk, and like the adrenaline rush of taking a risk and having it pay off.

Horse people are interesting and fun. The trackside culture is fun.

I should add that people who invest in race horses, even for a hobby, generally set it up as a business, so the cost of investing in a horse – feed, board, vet bills, training, race entry fees, farrier, etc. all become operating costs of the business. Horse racing is considered an industry.

Basically, horse racing is a rich man’s hobby. It is not a big moneymaker. There is ego tied up in owning the horses.

Personally, i had rather bet on a race horse, than own one. the chances of winning a race and gaining money, is much better than the cost involved of ownership. gamblers are a breed of their own. money is not their only concern, since horses are generally owned by a big corporation. its the thrill of just being a winner and the recognition of the win that draws horse ownership to people like a magnet.

Welcome to Fluther.

In a word: manure.

In several qualifying words: high-class, premium, ‘free’ horse manure.

I suppose there are some tax write-off benefits, if you have so much income that you need to offset it with some losses. And you can host fabulous parties with the horsey set, and get your photo in the paper a lot.

Saw this and had to answer. I realize this question is old, but as a former race horse owner I have to be honest. Most of what was said in the other answers are true, but I know that tax write offs are only allowed by a horse business that has MADE A PROFIT for something like four of seven years. I owned horses in the 80s and that was the IRS rule then. Owning horses is a big money pit. A worthwhile race horse on average runs $50K +. Training (in the 80s) cost $1400 per month, plus vet bills, shoeing etc. There are ten horses in a field, a horse can only perform in 1 race per week, and the purse must be divided between the jockey, trainer and owner. Injury to horses are not infrequent. Figure it out.