U of L study: Keeneland provides $1.6B to Fayette and surrounding counties

A Keeneland press release

 LEXINGTON, KY (Oct. 9, 2024) – A newly released economic impact study conducted by the University of Louisville’s Departments of Equine Administration and Economics reveals that Keeneland’s racing operations, annual Thoroughbred auctions, supporting business lines and investment in new construction generates an estimated $1.6 billion for Fayette and surrounding counties.  The study also noted that around 64% of racing patrons come from outside Kentucky, while around 67% of those attending and participating in the annual horse auctions come from outside the state.  Of those attending the auctions from out of state, approximately 24% come from outside the U.S.   

For more information, please visit https://www.keeneland.com/economicimpact

“Keeneland’s location in the heart of horse country allows us to serve as a global hub for the Thoroughbred industry,” said Keeneland President and CEO Shannon Arvin. “Our Thoroughbred auctions and spring and fall race meets attract participants from 50 countries and fans from every state.  The impact is felt far beyond the gates of Keeneland as Fayette and surrounding counties play host to these visitors, benefiting local businesses, hotels, restaurants and the entire region. This study reinforces Keeneland’s mission to strengthen our global equine industry and our Central Kentucky community for generations to come.” 

The comprehensive study conducted by University of Louisville Economics Professor Dr. Thomas E. Lambert evaluated the various operations of Keeneland, including Keeneland’s global Thoroughbred auctions, the spring and fall race meets, Keeneland’s year-round special events program, retail operations and guided tour program as well as the impact of Keeneland Library.  The study also enumerates the impact of Keeneland’s ongoing investment in new facilities including the construction of the new Paddock Building, which is scheduled to open in the Fall of 2025.   

“Keeneland is a world-class destination that every Kentuckian, visitor and horse enthusiast loves to visit, and it’s no surprise this Kentucky treasure is also a huge economic engine, generating $1.6 billion in economic impact each year for Lexington and our entire commonwealth,” said Gov. Andy Beshear. “I want to congratulate the dedicated and hard-working team at Keeneland for putting the best of our new Kentucky home on display.” 

Key findings from the study are outlined below: 

• Keeneland generates an estimated $1.6 billion + to the Lexington metro area (Fayette and surrounding counties). 
• On a normal year (without construction) Keeneland generates on average $1.46 billion annually to the Lexington metro area.  
• Keeneland, the world’s largest Thoroughbred auction company, generates $1.16 billion to the Lexington metro through annual sales in September, November, January and April.  
• Keeneland’s spring and fall race meets attract visitors from all 50 states as well as outside the U.S., generating nearly $300 million annually for the Lexington metro area.  
• Keeneland’s year-round special events program, retail operations, tour program and Keeneland Library generate an additional $97.7 million to Lexington and surrounding counties.   
• In addition to the above, Keeneland generates nearly $40 million in local, state and federal income taxes. 
• Keeneland’s ongoing construction generates $166.6 million to the Lexington metro area. This does not factor in the additional jobs, revenue and capacity that the new construction will generate in 2025 and beyond.   

“Keeneland is a jewel in the state crown, drawing people from around the world to the heart of the Bluegrass State,” said Senator Amanda Mays Bledsoe, R-Lexington.  “Keeneland’s atmosphere creates an intimate feeling around horse racing you can’t replicate outside of Lexington. I’m thrilled with the results of the study and am proud of our signature Thoroughbred industry.”  

“We all love Keeneland for its beauty and the tradition it represents,” Mayor Linda Gorton said. “However, this study underscores the fact that Keeneland is much more than a pretty postcard. It has an enormous impact on our economy. We are excited to support the new investments being made in Keeneland’s renovation – which will stimulate even more economic growth and jobs. Keeneland is part of our identity as the Horse Capital of the World, attracting thousands of visitors, who fill up our hotels and restaurants year-round.” 

The study also highlighted the impact of Keeneland’s visitors on the region’s tourism economy with participants attending its Thoroughbred auctions spending $336 million at area restaurants, hotels, retail shops, attractions and local business and patrons attending the Keeneland spring and fall meets spending $190 million annually.   

“The impact that Keeneland makes on our economy – and our tourism industry – cannot be overstated,” said Mary Quinn Ramer, President of VisitLEX. “Keeneland welcomes guests from all 50 states and many foreign countries annually and is a cornerstone destination. No other city can boast such a beautiful, historic and unique racing and sales experience.” 

Commerce Lexington President and CEO Bob Quick said, “Since 1936, Keeneland has been a key driver of the equine industry. It has also expanded Greater Lexington’s global reach through race meets and sales that attract owners, trainers, riders and fans from all around the world. We know that Keeneland’s economic impact is significant, but this study further demonstrates the year-round effect it has on a multitude of industry segments across the region. Thank you to the team at Keeneland for setting the standard of excellence in racing, sales, hospitality and overall tourism experience.”