What one of America's most lively sporting events says about the economy

On a lively Saturday morning at the Pimlico Race Course, a woman skillfully balanced a tray of cocktails on her head as she navigated through the bustling crowd. A man dressed in purple trousers called out, 'How much is that? ' as the glasses clinked precariously above her head. 'Twenty dollars,' she replied. Ray De Rubin, who was attending the Preakness Stakes for the first time, was there to place bets on the prestigious horse race, which was celebrating its 150th anniversary. Just two weeks prior, he had enjoyed a successful trip to the Kentucky Derby, where he had won a substantial amount of money. 'I wore the same outfit today as I did on Derby day,' he said with a grin, proudly displaying his Derby wristband. When asked about his bets at Pimlico, he playfully responded, 'I can't tell you. I don't want the IRS coming after me. ' As the race began, Mr. De Rubin's eyes were glued to the screens, and he exclaimed, 'I get really loud when I watch the race. I put a lot of work into this. ' The Preakness Stakes is one of three major horse races in the United States, alongside the Kentucky Derby and the Belmont Stakes. It is renowned for its glamorous atmosphere, attracting both wealthy attendees and enthusiastic fans. However, this year, the event felt different due to the economic changes brought about by President Donald Trump. His administration had implemented significant economic policies that led to widespread consumer anxiety. The impact of these changes was felt across various sectors, including the Preakness Stakes. Just weeks earlier, Trump had announced new tariffs, which are taxes imposed on imported goods. He referred to this day as 'Liberation Day' and claimed it would usher in a 'golden age of America. ' However, the immediate aftermath saw the stock market experience a dramatic decline, with trillions of dollars lost in just two days. The International Monetary Fund subsequently issued a warning about a potential global recession. Even fast-food giant McDonald's reported a decrease in sales, attributing it to customers feeling uncertain about their financial situations. While the stock market has shown signs of recovery following tariff agreements with the UK and China, the long-term effects of these tariffs are still unfolding. Major corporations like Walmart and Amazon have recently cautioned consumers about potential price increases. At Pimlico, the state of Maryland is making a significant investment, planning to demolish the existing race track after the event and construct a new facility along with a state-of-the-art training center. The Maryland Stadium Authority acknowledged that they expect some impact from the tariffs, but the extent of that impact on their half-billion dollar project remains uncertain. Additionally, attendance at horse races has been declining in recent years. This year, only about 46,000 people attended the Preakness, a stark contrast to the 131,000 attendees in 2019. The Kentucky Derby attracted a larger crowd of approximately 150,000, but that was still below its peak of 170,000 in 2015. Bill Carstanjen, the CEO of Churchill Downs, which hosts the Derby, noted that the decrease in ticket sales this year was linked to consumer hesitancy, which he said correlated directly with Trump's tariffs. 'We didn't have the endless pool of demand that we've seen in prior years,' he explained. Despite the economic concerns, betting records were still broken at both the Derby and the Preakness. Just over a week before the Preakness, a record of $348,000 was wagered on betting futures, surpassing last year's record of $260,000. This amount is just a small fraction of the millions that will be wagered by the time the final horse crosses the finish line. Justin Balthrop, an economics professor at the University of Kentucky, suggested that the increase in gambling could be indicative of economic distress. 'People who reach a certain level of despair may take on more risk, hoping to gamble their way back to a more comfortable situation,' he explained. Anthony Walker, who was attending his first Preakness Stakes, expressed his desire for a brief escape from the instability of the stock market and the disruptions caused by Trump's government policies. He planned to place some bets but admitted he would wager less than he typically would. 'I'm wagering 50% less, for sure,' he estimated, citing the current economic climate as a reason for his cautious approach. At the Preakness, there are numerous opportunities for gambling, even for as little as 10 cents. Peter Rotondo, who oversees racing and wagering for the event, shared, 'I've seen a 10 cent wager pay $75,000. ' To achieve such a payout, one would need to correctly predict the top four horses in the exact order, which is a challenging feat. The signature drink at the Preakness is the Black-Eyed Susan, named after Maryland's official flower. This colorful concoction, made with bourbon, vodka, and various mixers, raises questions about whether it truly honors the state flower or simply serves as a fun party drink. The Preakness is steeped in tradition, including the prestigious Woodlawn Vase trophy, crafted from sterling silver and valued at around $4 million. The actual winner of the race receives a replica of this trophy. Many attendees fondly recall the lively parties that take place in the infield. Bobby Duke, who attended the event frequently in his younger years, reminisced, 'It was an absolutely crazy party. ' He recounted a memorable incident from 1998 when someone jumped the fence and attempted to punch a horse during a race, a moment that has since become a viral sensation on YouTube. Maryland officials are optimistic that the new Pimlico will serve as a year-round racing facility, potentially boosting the local economy in the low-income Park Heights neighborhood. As the race progressed, Mr. De Rubin's excitement turned to anxiety as his chosen horses struggled. He had placed bets on horses one, three, and five. 'Oh, crap, the three horse. Here comes the one horse. Come on, one! ' he shouted, his anticipation growing. In a matter of minutes, his hopes were dashed as he did not win. However, he did not lose either, as the winning horse's payout returned his initial investment. He likened the experience of betting on horses to investing in the stock market, stating, 'You have ups and downs. ' His stock portfolio had also been affected by the tariffs but had recently shown signs of recovery. 'I have faith in Trump. He's a little crazy with it right now, but it'll all work out,' he concluded.