purse

Question
How is the "purse" of a race funded? I believe the purse used to be a stakes fee that each owner paid to enter the race, but these days the amounts are much larger. Do race tracks or other organizations sponsor these high purses?

Thank you! I have learned a lot from your many well-written answers!  

Answer
Lary,

Thanks for the kind words!
Here in the USA, purses are mainly funded by track revenue, which includes simulcasting revenues, and also slot/casino type revenue, if the track has such.  The track negotiates with the horseman's guild at each track to decide what percentage of the revenue will be set aside towards purses.  Then the Racing Secretary divides up the money into the purse amounts for each type of race.  (maiden races, claiming races, allowance, etc.)  The only exception to this are stakes races, which usually add each entrant's entry fees to the purse as well.  
This is why you will often see purse amounts change after a portion of the race meet has been run.  If the track is not getting the revenue that they expected, ad based their initial calculations on, they will have to reduce purses for the remainder of the meet.  If they are making more money than they thought, then purses will increase.

Stephanie Frost
www.AlchemyBloodstock.com