The influx of money comes from two sources, the owners and the fan.
In the long run, if these two entities are not satisified, its not gonna work.
Nothing goes if owners and fans dont put money in seems to me.

So who is going away to other forms of entertainment (with the chance for some money-the minority), the fans, owners, or both?

Seems to me its the fans.

I am not a businessman, but it seems that some entities that put on the entertainment do not know or care where the money comes from. Especially considering some of the horror stories I have read about treatment at tracks and online. And then the awful scam ridden treatment of owners in so many phases. Seems that the entertainers think the addicted gambler is the major player, and an endless source of money and the breeders, some horsemen, treat the owners as some host like a frkkn parasite.

Heck, maybe this sport can exist in a minor form with just owners supplying capital. Maybe the owners continue to foster the crazy buy to breed market, and the breeders just continue to supply this dead end. Maybe the situation as it exists is fun for the owners, this buy to breed is their entertainment.

And it seems incredible that with the advent of the internet things have actually become worse. I naively thought this would allow horseracing to absolutely blossom...

Dead wrong I was.

It is complex. But the driving force is the owner/fan combo. No offshore sites, data stores, HRTV, and right on down the line exist without the funds supplied by owners and fans.