US Horse Racing ADW Market Continues to Grow as Legal Sports Betting Drives Awareness

The US horse racing advance deposit wagering (ADW) market continued its growth trajectory through 2025, with the widespread normalisation of online and mobile betting driven by the post-PASPA sports betting expansion creating a larger general population of digital bettors who discovered or returned to horse racing wagering through legal platforms.

ADW: Horse Racing's Digital Betting Framework

Advance deposit wagering is the framework through which US bettors can place legal pari-mutuel wagers on horse racing online, via mobile apps, or by telephone from their home states — without physically attending the racetrack. ADW companies operate under state-by-state licensing arrangements and pay fees to racetracks and horsemen's groups for the right to offer wagering on their races.

Major US ADW platforms include:

• FanDuel Racing (formerly TVG) — The largest US ADW platform by handle, now rebranded under the FanDuel parent company's umbrella
• TwinSpires — Operated by Churchill Downs Inc. (CDI), the owner of Churchill Downs and host of the Kentucky Derby
• NYRA Bets — The official wagering platform of the New York Racing Association (NYRA), covering Saratoga, Belmont Park, and Aqueduct
• DraftKings Horse Racing — DraftKings extended into horse racing wagering through its ADW offering

The Sports Betting Connection

The explosion of legal sports betting since 2018 has had a secondary benefit for horse racing: the normalization of mobile wagering has made the concept of betting on sports through a regulated app familiar to tens of millions of Americans who might previously have never considered placing a bet. This broader digital betting awareness has created a larger pool of potential horse racing customers, some of whom discover the sport through cross-promotional exposure when accessing their sports betting apps.

Triple Crown Season

The Triple Crown season — the Kentucky Derby in early May, the Preakness Stakes in mid-May, and the Belmont Stakes in early June — remains the peak of US horse racing wagering by ADW handle and public attention. The Kentucky Derby in particular generates the highest single-race handle of any US racing event, with mainstream participation from many casual bettors who may not follow racing at other times of year.

2026 Kentucky Derby Outlook

With the US legal sports betting market expected to cover nearly 40 states by spring 2026, the 2026 Kentucky Derby is anticipated to attract a larger legally-wagering audience than any previous running of the race — combining ADW participation with sportsbook coverage of the event on legal sports betting platforms.