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While most horses in most races were whipped, the data show that there was a negative correlation between frequent whip use and winning. In fact, 40 of the 161 races were won by horses that were not whipped at all - that is, 25% of the total.
Also, see this interesting column in this week's New York Times, written about the future of thoroughbred racing -- and incidents like Eight Belles breakdown (though technically she wasn't racing when she was injured, so it wasn't really a breakdown) -- by famed breeder Jim Squires.