Imagine a horse you took part ownership in wins the Kentucky Derby. A multi-million dollar purse? You’d expect a piece of the purse, right? Not so fast. Your contract says you don’t get Derby winnings. Ok, well maybe the “stud fees” will rake in income, hold on. Only some horses offer stud fees to shareholders and others have stipulations on stud fees.
In the thrilling world of horse racing, platforms like MyRaceHorse promise everyday people a chance to own a piece of a racehorse for as little as $100. But is MyRaceHorse a good investment? If you’re searching for “MyRaceHorse reviews,” “MyRaceHorse scam,” or “should I invest in MyRaceHorse,” you’ve likely stumbled upon mixed takes, including success stories. However, digging deeper reveals a different picture—one filled with financial pitfalls, dissatisfied owners, and questionable returns. This article explores why investing in MyRaceHorse horses might not be the winning bet it seems, backed by real user experiences and expert insights. Whether you’re considering fractional horse ownership or exploring racehorse investment risks, read on to make an informed decision.
What Is MyRaceHorse? A Quick Overview
MyRaceHorse is a crowdfunding-style platform that allows individuals to buy micro-shares in thoroughbred racehorses. Founded by Mike Behrens and backed by billionaire B. Wayne Hughes (of Public Storage fame), it markets itself as an accessible way to enter horse ownership without the massive upfront costs. Shares start low, often around $200, giving buyers perks like updates, stable visits, and a share of any winnings. The company has had high-profile successes, like owning part of 2020 Kentucky Derby winner Authentic and 2024 Preakness champ Seize the Grey.
On the surface, it sounds exciting—especially for horse racing enthusiasts. But MyRaceHorse emphasizes that it’s not just about money; it’s about the “fun” and community. Yet, many treat it as an investment, leading to disappointment when reality hits.
Reason 1: High Risk of Losing Your Entire Investment
Horse racing is inherently risky, and MyRaceHorse amplifies this. The platform warns that you could lose everything, with horses often underperforming, getting injured, or never racing profitably. Unlike stocks or real estate, there’s no guaranteed liquidity—reselling shares can be difficult or impossible.
Owners frequently complain about horses that flop, leaving them with zero returns. One Reddit user called it “terrible value,” noting that micro-shares are overvalued, with investors covering all costs but seeing little upside. Even with winners like Authentic, which earned over $7 million, some shareholders report still waiting for payouts years later. If you’re investing for profit, this isn’t a stable option—it’s more like gambling.
Reason 2: Overvaluation and Hidden Fees Eat Into Profits
A major red flag is how MyRaceHorse structures deals. Syndicates buy horses at auction (e.g., $400,000) but sell shares at inflated valuations (e.g., $800,000), pocketing the difference upfront while owners bear ongoing costs. They also take a 7.5% cut of any prize money, which critics label a “boiler room scam.”
Add in management fees, training costs, and vet bills—all passed to shareholders—and potential returns dwindle. Reviews on Trustpilot and Sitejabber highlight this, with a dismal 2.1-star average on Sitejabber from 48 reviews, where users call it a “scam” due to no payouts and high fees. One owner lamented buying shares in Authentic and seeing nothing, despite the horse’s massive earnings.
Reason 3: Poor Customer Service and Lack of Transparency
Customer service woes plague MyRaceHorse. Users report ignored emails, no updates on horse races, and difficulties accessing accounts or winnings. On Facebook, one group member described a “disappointing experience,” with owners mocked and poor communication.
The company isn’t BBB accredited, which raises accountability concerns. While some defend it as “100% legit” with transparency, others feel misled. X users analogize it to bad investments with frozen accounts and losses, and one called a similar platform a way to “steal from the rich.”
Reason 4: It’s More Gambling Than Investment—And Often a Bad Deal
MyRaceHorse itself admits risks, but many enter expecting returns. Critics argue it’s for fun, not profit—like a cheaper Disney ride. Yet, bickering abounds: If it’s a “bad deal,” that’s on buyers, but why promote it as ownership?
Scam allegations persist, with some calling it the “greatest scam” since the Brooklyn Bridge sales. Even positive reviews warn: If you’re worried about ROI, “this is the wrong place.” For true investors, the odds favor the house (or syndicate).
Reason 5: Ethical Concerns and Broader Industry Issues
Beyond finances, horse racing faces scrutiny for animal welfare. While MyRaceHorse complies with regulations, some owners feel “slimy” about retiring horses early for breeding profits. Broader posts highlight exploitation in related industries, raising questions about sustainability.
Better Alternatives to MyRaceHorse Investments
If horse ownership appeals, consider traditional syndicates with better terms or direct partnerships. For actual investing:
- Stock Market or ETFs: Lower risk, higher liquidity.
- Real Estate Crowdfunding: Platforms like Fundrise offer tangible assets.
- Peer-to-Peer Lending: Steady returns without the gamble.
Scamadviser rates MyRaceHorse as legit, but user experiences suggest caution. Consult a financial advisor before any “fun” investment.
Final Verdict: Skip MyRaceHorse for Safer Bets
MyRaceHorse might thrill racing fans, but as an investment? The risks—financial loss, poor service, and overvaluation—outweigh rewards for most. With complaints piling up and delayed payouts, it’s better viewed as entertainment, not a portfolio booster. If you’re still tempted, start small and treat it like a hobby. For real growth, look elsewhere. What are your thoughts on MyRaceHorse? Share in the comments below!
Keywords: MyRaceHorse investment risks, MyRaceHorse complaints, is MyRaceHorse a scam, fractional horse ownership reviews, alternatives to MyRaceHorse
