Horse racing purse distribution follows a standard percentage model in most U.S. jurisdictions: 60 percent to the winner, 20 percent to second, 12 percent to third, 6 percent to fourth, and 2 percent to fifth. That’s the gross share. Before an owner sees a net check, trainer and jockey commissions come off the top, mount fees and per-start costs get deducted through the track bookkeeper, HISA assessments are collected, and the IRS gets its reporting copy.
The Standard Percentage Split
Most racing jurisdictions follow the percentage model drawn from the Model Rules of Racing published by the Association of Racing Commissioners International:
- First place: 60 percent
- Second place: 20 percent
- Third place: 12 percent
- Fourth place: 6 percent
- Fifth place: 2 percent
On a $100,000 purse, the winning owner’s gross share is $60,000, second earns $20,000, and the numbers scale down from there. Horses finishing sixth or lower generally receive a small flat starter’s fee rather than a percentage. These amounts vary by track and breed and are typically modest, enough to offset part of the entry cost but not a meaningful source of income.
The figure at each position is called the gross share. It’s the number that appears in official result charts and earnings records, and it’s what commissions and fees are calculated against.
Trainer and Jockey Commissions
In thoroughbred racing, the standard split takes 10 percent of the owner’s gross share for the trainer and 10 percent for the winning jockey. For second- and third-place finishes, the jockey’s cut typically drops to 5 percent while the trainer’s 10 percent usually holds.
On a $60,000 winning share, the trainer earns $6,000 and the jockey earns $6,000, leaving the owner with $48,000 before any other deductions. These commission rates are set through agreements between tracks and horsemen’s organizations and remain fairly uniform across thoroughbred racing in the United States.
Harness racing runs on a different scale. Standardbred drivers and trainers each receive 5 percent of the horse’s earnings rather than 10 percent. On a $5,000 winning share in a harness race, the trainer and driver would each receive $250, leaving $4,500 for the owner.
Mount Fees and Per-Start Costs
Jockeys who ride a horse that finishes out of the money still get paid through a flat mount fee, and the owner pays it whether the horse wins or loses. Fees vary by track, purse level, and breed. At many tracks, losing mount fees for thoroughbreds start around $75 for lower-purse races and climb with the purse. For races with purses of $100,000 or more, the losing mount fee can reach $105 or higher at some circuits. Quarter horse mount fees tend to run higher than thoroughbred fees at equivalent purse levels, often starting above $100.
Top-tier thoroughbred circuits have been pushing these numbers up. Some have moved to $125 minimums, with $500 floors for races carrying purses of $1 million or more.
Additional per-start costs include payments for the valet who handles the jockey’s equipment and the pony rider who escorts the horse to the starting gate. These smaller fees are deducted from the owner’s account through the horsemen’s bookkeeper, who manages all financial transactions between owners, trainers, and the track. Owners and trainers must deposit nomination, start, and entry fees with the bookkeeper before the horse runs.
HISA Assessments
The Horseracing Integrity and Safety Act created a federal regulatory body, the Horseracing Integrity and Safety Authority, that imposes fees on everyone involved in covered races to fund anti-doping enforcement and racetrack safety programs. Under federal law, HISA calculates these assessments on a per-start basis, so the total fee owed depends on how many times a horse starts during a given period.
State racing commissions can choose to remit HISA fees directly. In states that don’t, HISA assesses and collects the fees from covered persons, including owners and trainers, according to an allocation formula. The Federal Trade Commission approved HISA’s 2026 budget, which shifted to a starts-only calculation for apportioning fees among states.
Failure to pay carries automatic suspension from racing. The same applies to any failure to repay purse money when ordered: if a horse’s earnings are forfeited due to a drug violation and the owner doesn’t return the funds, the suspension is automatic unless the owner can demonstrate exceptional circumstances.
When the Purse Actually Pays Out
Winning a race doesn’t mean getting paid that afternoon. Purse money is held until post-race drug testing results come back negative. The winner and at least one randomly selected horse from each race are tested. Under standard laboratory contracts, preliminary results are expected within about three days, with final results due within eight days. In practice, lab delays can push payout timelines further out, and backlogs during busy meet schedules have caused frustration at some tracks.
If a horse tests positive, the purse for that horse is frozen and potentially redistributed to other finishers once the review process concludes. The remaining horses in the race who tested clean generally receive their shares on the normal schedule, since their results aren’t affected by another horse’s pending case. Payments run through the horsemen’s bookkeeper, who issues checks or direct deposits once results clear.
Taxes on Purse Earnings
Purse earnings are taxable income. Tracks report payments of $600 or more during the year to the IRS, typically using Form 1099-MISC for prize money paid to owners. You’ll receive this form after the end of the tax year, and the IRS gets a copy, so there’s no ambiguity about whether it needs to be reported.
Nonresident alien owners face an additional layer. Tracks must withhold 30 percent of any purse paid to a foreign person unless the owner files a Form W-8ECI certifying the income is connected to a U.S. trade or business and will be included in their gross income. This withholding applies to the full gross share before commissions.
Owners who operate as a business, which includes most who race more than casually, can deduct training expenses, veterinary costs, entry fees, transportation, and other racing-related costs against their purse income. The key requirement is that the IRS must view the racing activity as a business rather than a hobby, which generally means a genuine profit motive and detailed financial records.
Dead Heats and Disqualifications
When two horses cross the wire together and the stewards declare a dead heat, the purse money for the tied position and the next position below it are combined and split equally. If two horses dead-heat for first in a $100,000 race, the first-place share (60 percent) and the second-place share (20 percent) are added together and divided evenly. Each owner receives 40 percent of the purse, or $40,000. The horse that finished third on the track still receives the standard third-place share, since its position wasn’t affected.
Disqualifications work differently, and the rules vary by jurisdiction. When stewards disqualify a horse for interference or a rule violation, the purse is typically redistributed based on the revised order of finish. The horse that finished second on the track gets promoted to first and receives the winner’s share. Some jurisdictions keep the purse distribution tied to the original order of finish for drug violations discovered after the race, redistributing only after the full adjudication process concludes. These adjustments are processed through revised statements from the track’s bookkeeping office, and the timeline depends on how long the stewards’ review or appeal takes.