Racetracks are allocated a proportion of the pool for running costs, with the rest divided among winning punters. Rather than engaging in a process of taking bets, calculating odds and paying out winnings, parimutuel betting establishes a betting pool composed of other bettors’ wagers. This changing mood threatened to extinguish horse race betting altogether, until the introduction of parimutuel betting in 1908 delivered a rebirth to the industry. The American Stud Book from this time indicates there were 314 racetracks operating in the US in 1890, but by the early 1900s, anti-gambling sentiment led to the banning of bookmaking in almost all states.
In 1867 the first Belmont Stakes took place, followed by the Preakness Stakes in 1873 and the Kentucky Derby in 1875. This book formally documented America’s fascination with horse racing and continues to be published today. In 1868, the first American Stud Book was published - an official record of thoroughbreds across the US. The next two hundred years roused interest in the sport throughout the country, especially following America’s War of Independence. Horse racing - and illicit horse race betting - is first thought to have been introduced to the US in the 1660s with the British occupation and development of New York City, when race tracks were established on Long Island.
