With unrivaled excitement and clopping of hooves, the Kentucky Derby is more than just a race — it’s an economic staple in the city of Louisville and State of Kentucky.
The Kentucky Derby holds the distinction of being the longest-running sporting event in the US, with its 150th race just around the corner. This iconic event, which runs deep in tradition, brings in a crowd of over 150,000 annually. Cleo Battle, CEO of Louisville Tourism, projects an estimated economic impact of $405 million for the 2024 event, marking it as one of the most financially significant weekends in recent memory.
As a rise in attendance is predicted, organizers have announced plans to expand the venue to hold more spectators. This includes the addition of approximately 1,700 reserved seats and the creation of 50,000 square feet of climate-controlled hospitality space within the newly renovated facility. Also, recent renovations to the paddock area, which have been ongoing for the past two years, have transformed it into one of the premier viewing areas in the world, with the use of original brickwork and a capturing a circular layout.
While these extensive renovations come to an end, Louisville gets ready for the Derby, an event that’s a brief two-minute race time that is a citywide celebration. Nearly two years of construction and $200 million later, Churchill Downs is unveiling its most transformative change at the track in recent memory. During Derby week, the local economy experiences a significant boost, with businesses across various work sectors. From local boutiques to bakeries, this time rivals major holidays in terms of economic activity.
Beyond its cultural significance, the Derby also comes with certain traditions, such as fashion and fascinators; however, its most widespread tradition is sports betting, which has evolved with this event for years. With over 150,000 attendees, the Derby generates a large amount of revenue not only from ticket sales but also from gambling, with over $120 million wagered on the race alone.
In recent years, Kentucky has contemplated on whether or not to legalize sports gambling, facing the challenge of conflicting interests, with Churchill Downs Incorporated. However, recent legislative efforts have created a way for the legalization of sports gambling, with the state projected to generate $23 million in tax revenue annually as a result of this bill being passed.
As the 150th Kentucky Derby approaches, with legends and amazing stories of horses that have shaped this event over its 149 years of history, people are looking for the perfect horse and using formulas or information they have gathered from experts to win big.
The City of Louisville is looking to do the same.
