The 134^th annual Kentucky Derby horse race at Churchill Downs is set to take off this Saturday May 3, 2008 at 6pm EDT. The Kentucky Derby is said to be the king of all horse races, with an overall purse of $2 million, attracting all the best horses, best ownership teams, biggest crowds, and thus the best sponsors and advertisers of the year. The TV coverage is mostly provided by ESPN and NBC, with the main coverage, including the race itself, broadcast live on NBC starting at 4pm EDT.

The business of horse racing and horse betting is only getting bigger. The Kentucky Derby typically brings in at least 150,000 spectators. Add that to the number of horse ownership teams, media crews, and support staff that come for the race, and you’ve got yourself a nifty weekend boom for the local businesses of Louisville, Kentucky. Hotels, restaurants, convenience stores, clothes retailers, Derby merchandisers, golf courses—they will all experience a significant surge in business.

The Kentucky Derby betting element alone spawns many businesses and millions of dollars. There are books, websites, brochures, consultants, and call-in numbers—each created to help bettors pick the best horses and increase their chances of winning. Fortunes can be made and lost, and there are many people and agencies jockeying to facilitate the process. Where does all this money come from and go? Is it a zero-sum event, or is more money spent or earned? The long-reaching trails of the Kentucky Derby makes it very difficult to determine, but one thing is for sure: the local businesses of Louisville, Kentucky are certainly glad when the Derby comes to town.