The "sport of kings" is facing an uncertain financial future in California, according to a team of UC Davis economists. Although thoroughbred racing annually contributes more than $1 billion to the state economy, the people involved in breeding and training horses as well as the racing associations are finding the racing business is far from being a major moneymaker. Five of California's thoroughbred racetracks are located on prime urban land valued at a total of $810 million. Considering that value, the tracks are operating at approximately 6 percent return on their assets, which is no more than half the rate of return realized by similar industries, according to a recent study by the research team headed by Harold Carter, a professor of agricultural economics The researchers found that more than twice as much money leaves the horse sector -- that part of the industry devoted to breeding and training -- as comes into it from the pari-mutuel betting pool. The team says the demand for pari-mutuel betting could be increased by reducing the "takeout" -- that portion of the wagered money that goes to the state, the horse sector and the racing associations.