Horse racing is one of the most popular sports to wager on in the United States, but followers of the action will need to follow slightly different regulations depending on the state where they are playing from in the country.
Betting regulations and laws are common knowledge for those that wager on sport throughout the year, but it is an important consideration to assess for novices, especially ahead of major events on the sporting calendar.
Therefore, you can find out more about the different horse racing betting laws in the United States here before assessing the standout Breeders’ Cup bets for 2026.
Understanding the Federal Framework
Before delving into the different state laws, it is first important to consider the Federal Framework, which binds the horse racing betting laws. Firstly, the Interstate Horseracing Act of 1978, which legalizes and governs the interstate off-track and simulcast betting.
This ensures that the sport of racing gain special exemptions from general federal anti-gambling laws. The Horseracing Integrity and Safety Act (HISA) is also a new development to the framework.
This law was passed in 2020 and came into effect in 2020. HISA replaced the fragmented state medication and safety rules with nationalized standards, which are to be overseen by the Federal Trade Commission (FTC).
Online & Physical Betting
There are a couple of types of betting options depending on the state where you’re looking to bet on horse racing. The first is Permissive, including online and physical wagering.
This means that pari-mutuel wagering and advance deposit wagering options for online and telephone betting options are both state regulated and fully legal. States that follow these laws include New Jersey, Kentucky, California, and New York.
Unsurprisingly, these are locations that boast some of the nation’s most famous races, with record-breaking crowds typically in attendance for major meets such as the Travers Stakes and Belmont Stakes at Saratoga and Belmont Park, respectively.
Strictly Physical Betting
Some states outlaw the opportunity to wager online, which means that wagers can only be placed on horse racing by going to legal venues. These typically come in the form of racetracks or casinos, with the former typically offering simulcast options for races taking place across the world.
Under these laws, bets can not be placed online or by using telephones. Arizona is a notable state that follows this law, with many horse players having to travel to local tracks in the region such as Turf Paradise, to make their selections.
Restricted/Inactive
Not all states in the U.S. are fortunate enough to have horse racing venues. Therefore, there are some locations in America that operate with Restricted/Inactive State laws, typically meaning that wagering may technically be authorized in state law, but the state doesn’t have operating tracks to local licence the framework.
A notable state that falls into this category is Nevada, where betting on horse racing is 100% legal, but there are no venues to watch the action in-person. As the betting capital of America, many fans will flock to Nevada to watch the major races on track, with Racebooks being found in all major Las Vegas casinos.
Banned
For some, gambling on horse racing is completely outlawed in the United States, meaning that locals will not be able to bet on major events such as the Kentucky Derby, Belmont Stakes and Breeders’ Cup. In these states, betting on all forms of horse racing is strictly prohibited under anti-gambling regulations. States that fall into this category include Hawaii, Utah, and Alaska.
For those living in the states, there are bleak outlooks to any potential changes, with laws in Utah likely to become stricter to block gambling being legalised. Meanwhile, strong political opposition ensures that Hawaii is unlikely to change its gambling regulations.
Key Variations in Laws Depending on State
The legalization of betting on horse racing isn’t the only factor that is different depending on state law. There are also certain variations depending on the location in terms of age and wagering pools.
For example, the minimum betting age in most states is set at 21, but this is reduced in Massachusetts and Kentucky to 18. Wagering types are also slightly different depending on the state, with pari-mutuel being most popular across the board. However, states such as Kentucky have progressed with making sweeping changes to the betting industry by introducing fixed-odds options as well as pari-mutuel betting.
The takeout rates are also different depending on the state where you’re making your horse racing bets. This takeout percentage is withheld for state tax, track and purse money. Each state will regulate this itself, meaning that there isn’t a national standard across the board that is followed by all locations. For example, Kentucky’s takeout is typically lower than that of New York tracks.