What event does Kentucky celebrate annually that features horse racing?

Kentucky celebrates the Kentucky Derby annually, which is not only one of the most prestigious horse races in the United States but also a significant event in the state’s cultural and social calendar. The Kentucky Derby takes place on the first Saturday in May at Churchill Downs in Louisville and is known as "The Most Exciting Two Minutes in Sports" due to its fast-paced nature. This event attracts thousands of spectators, both in person and via broadcasts, and is steeped in tradition, including the famous Mint Julep cocktail and elaborate hats worn by attendees.

The Derby stands out as a hallmark of Kentucky's heritage, particularly its strong association with thoroughbred horse racing, which is a vital part of the state's economy and culture. While other choices present notable events, they do not specifically center on horse racing in the way that the Kentucky Derby does. For example, the Kentucky State Fair celebrates agriculture, the Bourbon Festival highlights the state's bourbon industry, and the Bluegrass Music Festival focuses on music. Therefore, the Kentucky Derby is the quintessential event that embodies the state's racing legacy and cultural significance in this regard.