I read Sobhy Sonbol's State of the Industry report with interest. It is both insightful and thought provoking–two things our industry needs more of.One statement in particular prompted me to write:“Horse racing has two revenue inputs. People buy horses and people bet on horses. Everything else–purses, salaries, track maintenance–is derived from those two.”This framing reflects how many in our industry view the business. However, I believe it defines our value proposition too narrowly. The Thoroughbred is more than an asset to be wagered on; the horse is a gateway to a wide range of experiences. By focusing too heavily on wagering alone, we risk missing the broader opportunity to grow the sport.Historically, racetracks operated on a model of low cost admission, with profitability driven primarily by handle. The on track experience–whether food, amenities, or service–was secondary, because the primary draw was the thrill of betting. A useful analogue is the traditional Las Vegas model, where casinos subsidized rooms and dining to drive gaming volume.But that model has evolved. Today, Las Vegas generates increasing revenue from premium experiences–high end dining, entertainment, and hospitality–often at full price. People now go to Las Vegas for the experience itself, not just to gamble. As the old joke goes, people used to say they went to Vegas for the shows–now they actually do. The success of venues like the Sphere underscores this shift.Horse racing is undergoing a similar transition. Consider Churchill Downs: on Kentucky Derby Week 2026, handle reached approximately $487 million. With takeout rates between 17% and 22%, and the track retaining roughly half of that, the net share is about 9% of handle. After accounting for operating margins, the contribution to profit is a modest $11-14 million out of approximately $200 million in increased second quarter earnings. It is increasingly difficult to sustain the entire enterprise on wagering alone.Encouragingly, tracks are adapting. Churchill Downs now derives a majority of Derby Week revenue from ticket sales and premium experiences–categories that carry significantly higher margins than wagering. Keeneland's premium paddock seating sells out within minutes. Del Mar and Santa Anita are exceptional live event venues. Saratoga's 1863 Club continues to perform strongly, and the redevelopment of Belmont Park is expected to expand similar offerings.That said, as we pursue higher end experiences, we must be careful not to alienate our core audience. Accessible, high energy race days remain essential. Large crowds enhance the value proposition not only for fans but also for owners. Part of the appeal of ownership is the sense of occasion–the feeling that what you are participating in matters.I was reminded of this when Lady Eli, a Runnymede-bred filly, won the Belmont Oaks on July 4, 2015. It was a remarkable achievement, yet the sparse attendance muted the moment. Contrast that with the energy of a packed grandstand at Churchill Downs, Keeneland, or Saratoga–whether 20,000 or 150,000 people–the difference in perceived significance is profound. The value of a racehorse is not solely economic; it also includes the emotional and experiential return, in addition to the “lottery ticket” effect-even millionaires and billionaires want to dream.One of our sport's greatest strengths is the diversity of experiences it offers. The appeal can come from the adrenaline of wagering, the pageantry, the fashion, the exclusivity, the setting, or the social atmosphere. But at the center of it all is the horse–our most powerful and underutilized asset.Thoroughbreds are not only exciting to bet on; they are also capable of inspiring connection, admiration, and even healing. We have seen this through stories like Cody's Wish and initiatives such as Stable Recovery. I have firsthand experience of visitors to the farm being emotionally moved by the horses–even to the point of tears for them and for me. These examples highlight something unique to our industry: the emotional connection between people and horses. It is also why so many Horse Country visitors leave as racing fans.If our industry treats the horse as a commodity whose sole purpose is to drive handle and then discards it when it can no longer fulfill that purpose, we lose–morally, reputationally, and economically.As an industry, we should lean further into what differentiates us. We should continue to build experiences that bring people closer to the horse while enhancing the overall event. This is not simple, but by focusing on the horse as the centerpiece–and continuing to invest in both premium and accessible experiences–I believe we can position the sport for a stronger and more sustainable future.To that end, my suggestion is that the industry focus on what is working:Race tracks and sales companies should measure and publish their Net Promoter Scores alongside handle, attendance, and sales figures. This would put guest experience on par with traditional financial metrics.It is difficult to provide elevated experiences in antiquated facilities. Race tracks in states with gaming revenue and dated infrastructure should allocate a portion of that gaming revenue to capital improvements. Modern venues make it easier to deliver premium racing experiences.Invest in people who can execute elevated dining and entertainment. Bring in talent from diverse backgrounds and from the broader entertainment world to inject new ideas into the racetrack and sales experience.Develop stronger linkages between racetrack fans and the farms. Horse Country member farms/venues currently receive an average Net Promoter Score of 92 from their guests–a potent form of “spiked Kool Aid” for our sport.Continue to focus on the welfare of our horses, land, and people. These are the key ingredients of our industry, and caring for them is both an ethical imperative and a business necessity. Brutus J Clay, III, is the Chairman of Runnymede Farm, LLC, and a Horse Country co-founder (“i.e., mule-team member”) The post Letter to the Editor: The Key Ingredients to Our Industry appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.