Owning a racehorse is promoted as an easy way to amass fame and fortune, but very few win any money at all let alone return their training costs and/or purchase price.
When a thoroughbred destined for racing is born in Australia, its chances of being a successful racehorse are slim. It is estimated that only 300 out of every 1,000 foals produced will ever start in a race.  That means of the 15,000 thoroughbred foals born each year in Australia alone, an approximate 10,000 will be ruthlessly discarded and mostly end up at “the doggers.”
Of the horses that do race, one Australian Study found that approximately 40% earned no money at all and only 13% earned enough money to cover costs.  These figures did not include the initial purchase price. Dr Paul O’Callahan, Chief Veterinary Steward of the Victorian Racing Club states that approximately less than 2% of horses actually earn their keep. 
What happens to ex-racehorses?
While the racing industry argues that many ex-racehorses are sent to stud for breeding, the number of horses involved in breeding has been in steady decline for many years. Since 2000, the number of breeding mares has declined by 12% while stallions have decreased by 30% That means that for every horse that is sent to stud, at least one leaves. Nearly all the horses that leave the stud will be killed for meat.
A few lucky ones!
There is no doubt there are a few lucky horses that are saved by caring individuals and horse rescue organisations. Unfortunately, the numbers are extremely low due to the expensive costs and the time needed in retraining and maintaining a horse.
The Doggers and Abattoirs
In a business where making a profit is extremely difficult, it is vital to discard a horse as soon as possible after deciding it is no longer viable. To facilitate this, many trainers have arrangements with transport contractors, knackeries or abattoirs that pick up horses on demand. The horses are often picked up at discreet times to spare track workers, strappers, trainers and owners from the guilt of this sad reality.
Younger horses will generally be killed for human consumption in one of Australia’s 2 horse abattoirs located in Caboolture, Queensland and Peterborough, South Australia. Older horses generally end up as dog meat.
“Of the twenty knackeries that participated, only three plants processed 200 or more horses per month. Plants that processed larger numbers of horses tended to process younger horses. The managers of these plants suggested these horses tended to be sold to the slaughterhouse as a result of economic difficulties, such as due to the drought. They also reported slaughtering large numbers of racehorses”
“Given the low market value of ex-racehorses, the high costs of care and level of experience required, it is likely that if this large number of horses did not enter slaughterhouses, they would be prone to conditions in which their welfare would be a cause of concern” 
 (Bailey etal.1999; Bourke 1995)
(They Shoot horses don’t they, Jane Duckworth 2001)
(Australian Racing Fact Book 2005-2006)
Hayek, Ariella (2004) “Epidemiology of horses leaving the racing and breeding industries”.