TOKYO, JAPAN - NOVEMBER 26: Jockey Yutaka Take who rode Deep Impact of Japan to victory in the 26th Japan Cup holds the horse at Tokyo Race Course on November 26, 2006 in Tokyo, Japan.  Britain's Ouija Board, ridden by Frankie Dettori came third . (Photo by Junko Kimura/Getty Images)
The secret to Japanese breeding success? Bets
02:40 - Source: CNN

Story highlights

Japan's racing industry has grown rapidly

Aided by betting and imported stallions

Japan Cup attracts huge crowds each year

CNN  — 

In an industry dominated by Europe and North America, Japan has emerged as a superpower in horse racing.

Tradition dictates that the likes of USA, France, and Ireland – where there are 50 thoroughbred horses per 10,000 people – rear the world’s finest racing steeds.

But over the past decade, Japan has bucked that trend. The country produced just under 50,000 race horses in 2016, and races attracted over 6 million people that year according to the Japan Racing Association (JRA).

The betting industry, meanwhile, has also boomed, and it was estimated that Japan wagered $22.5 billion in 2015.

“The horse racing industry is getting bigger and bigger,” trainer Mitsu Nakauchida tells CNN Winning Post.

“[In Japan] we have powerful owners who are buying a lot of stallions and mares from all over the world. It’s just getting bigger every year.”

hong kong horse races_00000711.jpg
The $238M horse races that keep on giving
01:33 - Source: CNN

READ: The rise of the Hong Kong International Races

READ: Footballer Michael Owen makes jockey debut

READ: Australia’s richest race just got richer

Importing a ‘champion’

Nakauchida, who learned his trade in Ireland, the UK, and California before moving back to Japan, says much of this success owes to importing some of the world’s finest race horses – and one in particular.

“I think Sunday Silence changed the last 15 or 20 years. We don’t have to bring in as many stallions as we used to before,” explains Nakauchida.

“He was the champion horse in America and he was imported into Japan and he was the champion stallion for the last 10 years here I think.

“Then he produced Deep Impact, the most significant stallion in Japan at the moment.”

American thoroughbred Sunday Silence won the Kentucky Derby and Preakness Stakes in 1989, but failed to complete the Triple Crown when he finished second to Easy Goer at the Belmont Stakes. He backed up those two wins by claiming the Breeders’ Cup Classic later that year.

His introduction to Japanese breeding had a knock-on effect for future generations, most notably with Deep Impact becoming the first horse in 11 years to win the Japanese Triple Crown in 2005.

“The big players in Europe and America are sending very good mares, proven mares, to Deep Impact, and they’re producing good offspring,” explains Nakauchida.

“Deep Impact is more famous than any other stallion at the moment I think.”

Betting profits

There’s another secret to Japan’s horse racing success, though, and that lies with the fans.

The public are only allowed to bet on a few sports and horse racing is one of them; 2016 was the first time punters could put money on foreign races.

Paris, FRANCE:  Japanese support the horse, Deep Impact and his jockey Yutake Take of Japan which attract a huge fan club, during the Prix de l'Arc de Triomphe's race at Longchamp, 01 October 2006 in Paris.  Around 5,000 Japanese nationals had travelled over to Longchamp, in western Paris to see the five-year-old colt take on Europe's finest including last year's champion Hurricane Run but that did not deter them from queuing up at a specially designated betting stall solely for Japanese punters. AFP PHOTO BERTRAND GUAY  (Photo credit should read BERTRAND GUAY/AFP/Getty Images)
Japan's $22 billion love of horse racing
01:36 - Source: CNN

The profit generated by betting is reinvested into prize purses of JRA races. It has helped the country create some of richest races in the world, and the Japan Cup now boasts $5.6 million in prize money – $2.6 million of which goes to the winner. But the money is invested elsewhere as well.

Visit cnn.com/sport for more news and videos

“We have a huge turnover in betting that really goes back to breeders and owners so they can spend more on individual horses,” says Nakauchida.

“I think that’s a biggest factor to the racing industry growing so big in Japan. It’s huge money in Japan compared to any other country … we do invest quite a lot, but what’s coming back is big as well.”