Main Article Content

Brad Humphreys
Brian P Soebbing


Consumer interest in horse racing has declined significantly in North America.  In an attempt to reverse this decline, additional gambling opportunities, including simulcast betting, have been added at race tracks. This paper investigates the impact of simulcast betting on live racing handle at Canadian horse racetracks. Using data from the 18 largest Canadian racetracks over the period 1999 through 2006, IV results indicate that increases in remote wagering opportunities in Canada lead to small positive increases in live handle. Simulcast betting opportunities do not cannibalize live wagering, rather they increase live wagering.

Article Details



Ali, M. M., and Thalheimer, R. (1997). ‘Transportation costs and product demand: Wagering on parimutuel horse racing’, Applied Economics, Vol. 29, pp. 529-542.

Ali, M. M., and Thalheimer, R. (2002). ‘Product choice for a firm selling related products: A parimutuel Application’, Applied Economics, Vol 34, pp. 1251-1271.

Baum, C. F., Schaffer, M. E., and Stillman, S. (2007). ivreg2: Stata module for extended instrumental variables/2SLS, GMM and AC/HAC, LIML, and k-class regression. Boston College Department of Economics, Statistical Software Components S425401. Retrieved from

Coate, D., and Ross, G. (1974). ‘The effect of off-track betting in New York City on revenues to the city and state governments’, National Tax Journal, Vol. 27, pp. 63-69.

Horse Racing Alberta (2007). Horse Racing Alberta: 2007 annual report. Retrieved from (n.p.).

Greene, W. H. (2000). Econometric Analysis: Fourth Edition. Upper Saddle, NJ: Prentice-Hall.

Newhouse, J. P., and McClellan, M. (1998). ‘Econometrics in outcomes research: The use of instrumental Variables’, Annual Review of Public Health, Vol. 19, pp. 17-34.

Staiger, D., and Stock J. H. (1997). ‘Instrumental variables regression with weak instruments’, Econometrica, Vol. 65, pp. 557-586.

Stock, J. H., and Yogo, M. (2002). Testing for weak instruments in Linear IV Regression. NBERWorking Paper No. T0284. Available at SSRN:

Thalheimer, R., and Ali, M. M. (1992). ‘Demand for pari-mutuel horse race wagering with special reference to telephone betting’, Applied Economics, Vol. 24, pp. 137-142.

Thalheimer, R., and Ali, M. M. (1995a). ‘Intertrack wagering and the demand for pari-mutuel horse Racing’, Journal of Economics and Business, Vol. 47, pp. 369-383.

Thalheimer, R., and Ali, M. M. (1995b). ‘The demand for parimutuel horse race wagering and attendance’, Management Science, Vol. 41, pp. 129-143.

Thalheimer, R., and Ali, M. M. (1998). An economic analysis of a parimutuel racetrack-racebook. University of Louisville, unpublished manuscript.