The horse racing industry in the United States has been in decline for decades. The days when major prep races for the Kentucky Derby were on network television are long gone, and racetrack attendance and betting handle have declined sharply. The industry's demographics are a nightmare, with most fans in their 60s and 70s.
Businesses in the industry are nearly all pessimistic, with most believing that the downward trend is unstoppable. As a result, they're trying to get collect as large a share as they can of an ever-shrinking pie. Decisions are short-term, with no willingness to take on risk or make sacrifices for the future. This feeds into the industry's downwards spiral.
It may be too late to save the racing industry in the U.S., but if there is any hope, racing needs to find sources of revenue outside of gambling. At one time, horse racing had a near monopoly on gambling dollars in the United States, and as a result the industry focused almost entirely on gamblers and didn't make any effort to nurture fans who were drawn to the sport for other reasons and willing to spend money in other ways. With far more competition for gambling dollars now, racing needs to reinvent itself to have any chance of a bright future. This will require risk and a certain amount of trust in the quality of entertainment that racing can provide outside of gambling. It may not work...but it's racing's best shot.