refactored_horse_race.rb

class Game
  attr_reader :horse_graphic
  def initialize
    @my_horse = Horse.new(true)
    @matz = Horse.new
    @david = Horse.new
    @horse_graphic = %{
       (\\(\\_
     _.0 o\\\\\\\\
    ("_     ))))
     '---'  ((((          .=,
         )   )))___.-""-./=;\\\\\\
        /    (((         \\ )))) 
       ;                  | |//
       /\\         |      | ((
      (  \\   /__.-'\\   /   )
       \\` |  /    \\ \\ |
       \\  \\ ;        \\(\\(
       ||   ||       || ||
       ||   ||       || ||
      /_<  /_<      /_</_<
  This is your horse #{@my_horse.name}. 
 
  ...He looks a little off.
  }
    puts @horse_graphic
    @walking_graphic = %{
                               _(\\_/) 
                             ,((((^`\\
                            ((((  (6 \\ 
                          ,((((( ,    \\
      ,,,_              ,(((((  /"._  ,`,
     ((((\\ ,...       ,((((   /    `-.-'
     )))  ;'    `"'"'""((((   (      
    (((  /            (((      \\
     )) |                      |
    ((  |        .       '     |
    ))  \     _ '      `t   ,.')
    (   |   y;- -,-""'"-.\\   \\/  
    )   / ./  ) /         `\\  \\
       |./   ( (           / /'
       ||     \\          //'|
       ||      \\       _//'||
       ||       ))     |_/  ||
       \\_\\     |_/        \\ \\
Well, your horse only moved 1 space
}
 
    @trotting_graphic = %{
                         ) `-=--.  
                        )/  ._.-'
               _.-=-...-'  /    
             \{\{|   ,       |
             \{\{\\   |  \\ /_
             )) \\,'---'\\___\\
            \{  )/\\     \\ >\\
               //  >\     >\`- 
              `-   ` -     `- 
Congrats, your horse moved 2 spaces
}
 
  @galloping_graphic = %{
   `';;;;;;;;;;;;;,      `'.           .--'-._';,
      ,;;';;''/            `;_       `';;;;'    `'.
              |  .            '-._   ,;;:'   /  '<a'.
              |  ;        \\      '.,;;'     |       \\
               \\ \\      |                  ;._. ,-'`.
            /`'-`;.`'._   /                  /   `-.\\_/
            ; .-._ .-'  .'                  |
           / /    '\\ .-'`.                _/
       _.-' /       \\\\   '-._            /
      (_/_.'     __.) /       `;--.._/   (
                (_/__/          \\   `,   \\
                                 \\  | \\   \\
                                  \\ \\  `\\  |
                                   \\ \\   \\ \\
                                    \\_\\   \\ \\
                                     )-`\   \\_\\
                                     `==`   )-`\\
Sweet! your horse moves 3 spaces!
}
 
 
    @zero_graphic = %{
          ./|,,/|
         <   o o)\\'
        <\\ (    |
       <\\\\  |\\  |
      <\\\\\\  |(__)
     <\\\\\\\\  |
 THE HORSE GIVES YOU A BLANK LOOK
 
 AND DOES NOTHING
}
    #draw_tracks
  end
 
  def draw_tracks
    @user_track = ["|====|", @my_horse.name]
    @matz_track = ["|====|", "matz"]
    @david_track = ["|====|", "david"]
    play_game
  end
  def play_game
    puts "Before we race, here's how the commands work:"
    @command_explanation = %{
    'spur' to spur your horse
    'snap' to snap the reigns
    'hyah' to yell real loud
    'whip' to whip the horse}
    puts @command_explanation
    puts "when you're ready, press any key and hit enter"
    initializer = gets.chomp
    countdown = 3
    while countdown > 0
      system 'clear'
      puts "READY?"
      puts countdown
      sleep 1
      countdown -= 1 
    end
    puts "GO!"
    print "\n #{@user_track*""}"
    print "\n #{@matz_track*""}"
    print "\n #{@david_track*""}"
    until @user_track.flatten.length > 12 or @matz_track.flatten.length > 12 or @david_track.flatten.length > 12
      run_command
 
      @matz.bot_run.to_i
      @david.bot_run.to_i
      
      display_track
    end
    if @user_track.flatten.length > 12
        puts "Hurray! you are a winrar"
        return
      elsif @matz_track.flatten.length > 12
        puts "aww, matz won"
        return
      elsif @david_track.flatten.length > 12
        puts "shoot, david won"
        return
    end
  end
 
  def display_track
      system 'clear'
 
      @user_track.insert(1, [@my_horse.gallops] * @progress)
      @user_track.flatten!.reject! { |a| a.empty?}
      @matz_track.insert(1, [@matz.gallops] * @matz.bot_progress) 
      @matz_track.flatten!
      @david_track.insert(1, [@david.gallops] * @david.bot_progress) 
      @david_track.flatten!
      print @user_track*""
      print "\n"
      print @matz_track*""
      print "\n"
      print @david_track*""
      case @progress
        when 1
          puts @walking_graphic
        when 2
          puts @trotting_graphic
        when 3
          puts @galloping_graphic 
        else
          puts @zero_graphic
      end
  end
 
  def run_command
    @base_roll = rand(10)
    puts @command_explanation
      #should display the meaning of the commands
      #like spur is reliable but not fast
      #while whip is hihgly effective but has a high chance for failure
    @command = gets.chomp
    case @command
      when "spur"
        @new_roll = @base_roll * (rand(6..10))
      when "snap"
        @new_roll = @base_roll * (rand(7..8))
      when "hyah"
        @new_roll = @base_roll * (rand(1..7))
      when "whip"
        @new_roll = @base_roll * (rand(6..9))
      else
        puts "Hurry up! Only enter 'kick' 'snap' hyah' or 'whip'!"
        run_command
    end
 
    case @new_roll
      when (1..30)
        @progress = 1
      when (31..60)
        @progress = 2
      when (60..90)
        @progress = 3
      else
        @progress = 0 
    end
  end
end
 
class Horse
  attr_reader :name, :gallops, :bot_progress
  def initialize(users_horse = false)
    users_horse = users_horse
    if users_horse == true
      get_name
    else
      bot_run
    end
    @gallops = "-_ "
  end
 
  def get_name
    puts "what is your horse's name?"
    @name = gets.chomp
 
  end
 
  def bot_run
    @bot_progress = rand(1..2)
  end
end
 
 #placeholder = Game.new

Lines 149-154 are pretty repetitive -- why not extract it out into a method that you can pass the horse to as an argument?

The play_game method is HUGE. Can definitely be broken down a lot into simpler methods that each achieve one goal. Actually, that's the biggest feedback for you right now -- break things down into smaller pieces. Otherwise, well done :)