One of the main reasons that people raise Chao is to race them.
Winning all the Chao races is essential as they have ten out of the 180 emblems needed to complete the game on the Dreamcast version, and five out of 180 for the Gamecube version.
In order for your Chao to be any good in the races (excluding beginner), you need to raise all of five of your Chao's skills up to a respective level (SWM FLY RUN PWR STA). This way, you should get all the Chao emblems with ease.

While racing your Chao watch your stamina! It will gradually decrease as the race goes on. You can cheer for your Chao and give it a small boost by pressing the 'L' or 'R' buttons. This will make it go faster for a few seconds but will decrease its stamina a bit too, so make sure you have enough to last you for the entire race! Or your Chao will have its speed decreased by about half.

Beginner Races:

The Beginner Races: As these are beginner races, your Chao's stats don't need to be too high.
Crab Pool key to winning is swimming	This is simply a swimming competition from start to finish.
Stump Valley key to winning is flying	This track is a running track with a cliff you have to fly down. However, if your Chao is not good enough at flying you may have to climb up the cliff.
Mushroom Forest key to winning is running	This is a straight running race with nothing else involved.
Block Canyon key to winning is climbing	Run forward a short distance and you will get to the main cliff that you have to climb up to reach the goal.

Jewel Races:

The Jewel Races: The Beginner Races were the easiest races to win. The Jewel Races are next, and are MUCH harder. Things start to heat up! These are probably the hardest set to win, with six races, each with five levels. Think you can beat them all?
Aquamarine key to winning is swimming	This course is focused on running and swimming; the largest pool is near the end.
Topaz key to winning is flying	Flying is needed to have an edge, although nearly every other skill is tested too.
Peridot key to winning is running	This course is just a long running race with no other skill needed.
Garnet key to winning is power	This course needs running and power. Needs power due to cliffs needed to be climbed and a tree that you have to shake down a nut from to eat.
Onyx key to winning is intelligence and luck	Running is needed as well as intelligence. The first puzzle is a Jack in the Box, the second shows a picture of a fruit that your Chao must pick up, and the last needs luck to avoid falling down a hole.
Diamond key to winning is general ability	Every single skill is tested in this race, is your Chao up for it? I still reccomend your running stat to be very good to stand a chance. I estimate around 700.

Challenge Races:

The Challenge Races: Now its time for the Challenge Races! These are some very good races that are usually quite long, but can show you some very rare Chao!
Gold and Silver Rivals key to winning is swimming	A long course against Gold and Silver Chao. You will probably need a well-rounded Chao for this race.
He Returns key to winning is flying	The same track as the previous race. It is against seven Chao but one of them is Chacron from Sonic Adventure 1 (he is very good).
Mushroom Forest key to winning is running	This is a straight running race with nothing else involved.
Block Canyon key to winning is climbing	Run forward a short distance and you will get to the main cliff that you have to climb up to reach the goal.

Now its time for the Challenge Races! These are some very good races that are usually quite long, but can show you some very rare Chao!

The Challenge Races: These races are consisted of different races with different opponents. Have Fun!
Gold and Silver Rivals	A long course against Gold and Silver Chao. You will probably need a well-rounded Chao for this race.
He Returns	The same track as the previous race. It is against seven Chao but one of them is Chacron from Sonic Adventure 1 (he is very good).
I'm Trying!	A long running race against seven Omochao's. This race isn't to hard if your Chao has a good running stat.
Small Animal Challenge	A long race testing all your skills against seven small animals.
Cockroach Chao Group	This race is against some black Cockroach Chao's. Not too hard.
Oh, My Egg!	A long running race against Chao Eggs that have eyes and legs! Quite amusing to race against.
Skeleton Group	This is a long race against seven other Chao wearing skull hats.
Pumpkin Group	This race is exactly the same as the skeleton group but the Chao are wearing pumpkin hats instead.
Ghost Group	This is on the same course as the skull and pumpkin group race but the other Chao all have no legs and a flame dot. Some wear hats too.
He Strikes Back	Chacron is back and he is hard to beat! The race is on the same track that you raced him before but Chacron has improved in every area and give even the best of Chao a tough challenge.
Chao Ranger	This race is against some Jewel Chao. This race isn't that tough and you should win if you beat Chacron in the previous race. (In the Gamecube version the Jewel Chao are replaced with Shiny Chao)
Here comes the Ultimate Rival	This is the last Challenge race and is against the Light Chao. This race can be pretty tricky to beat but if your running stat is quite high, you should win.

Now its time for the Hero and Dark Races! There are only four races for each, but they are quite tricky. They have some restrictions, so make sure you use the right Chao!

The Hero Races: Dark Chao cannot enter these races.
Baby Devil	A long running race against some small Dark Chao.
Child Devil	A long race against some faster Dark Chao. You will do well if your Chao has been trained more since the last race.
Death Troops	A race against some Dark Chao with skulls on their head. Mainly power is needed with two cliffs to climb and a nut tree to shake.
Devil Vs Angel	A 1 on 1 race against a strong Devil Chao. This is a very tough race to beat, on a long course. But train hard and you will succeed in the end.

The Dark Races: Hero Chao cannot enter these races.
Baby Angel	A long race against some small Hero Chao. Running is the only skill required.
Angels	Another long race against some faster Hero Chao.
Flying Angel	This course requires high flying and swimming stats, with running having to be quite high as usual. There are a few cliffs with water below, and a pool to swim in near the end.
Angel Vs Devil	A 1 on 1 race against a strong Angel Chao. This is a very tough race to beat, on a long course. But train hard and you will succeed in the end.

When your Chao wins certain races, they will receive a prize! The prize is usually some sort of toy for your Chao to use in the garden. Here is the list of toys given to your Chao for winning certain races:

Beginner Races:

Jewel Races:

Challenge Races:

Hero Races:

Dark Races: