Thankfully there are other takeout idiots!

[Leggy 4,089]

Takeout increase means Californian racing going downhill fast

Californian racing authorities, in their infinite wisdom, decided that to fix all their funding issues they should screw the punter for even more money by increasing margins on most exotic bet types. A basic understanding of economics will tell you that increasing price will reduce turnover and thus players will have less to bet with next time. But, to get into the hierarchy of Californian racing and the government bodies who approved this staggering concept, an understanding of economic theory won't get you a job - you might actually be able to talk sense.

HANA (Horseplayers Association of North America) and others called for a boycott of West Coast racing once the increase was implemented on January 1. Here are the figures for the first ten weeks or so of the year.

California Horse Racing Boycott - Handle Losses Exceed $100 Million

Follow the link for the full data, but from selected stats...

Santa Anita - Handle (turnover) per race down 11.9%

Golden Gate - Handle per race down 15.7%

And some clever people....

Meanwhile on the East Coast, Tampa Bay Downs decided to cut takeout on Pick 3, Pick 4 and Pick 6 bet types. The net result - those bet types are up 14.0, 40.2 and 21.0 %, and the overall wagering revenue for the track is up 3.9%.

[punnaponning 0]

certainly not Big Bill Colgan , but I would have haha

[RodHill 0]

Send the info to Bill. Let him know we are thinking about him.

[Leggy 4,089]

Send the info to Bill. Let him know we are thinking about him.

I'll post this here since it is relevant. This was from an 09 presentation to the world trotting conference by PMU. Their strategy in preparation for the now competitive online wagering market. Interesting their online wagering is up 57% in the first quarter 2011:

]Horserace betting: exclusively in pari-mutuel

Sports betting : fixed odds and pari-mutuel betting will be authorized (including

[Leggy 4,089]

Send the info to Bill. Let him know we are thinking about him.

Bill says thanks and please say hi but adds that the relationship of takeout with turnover remains unresolved globally.

[RodHill 0]

Bill says thanks and please say hi but adds that the relationship of takeout with turnover remains unresolved globally.

Ask him if he has worked out what the relationship between takeout and the size of his stomach is?

[punnaponning 0]

and further to that he maintains that increasing takeouts will increase profit in the medium to long term.

NZRB are very lucky having such an incisive wagering expert as acting CEO.

Do you think the word genius is over used ?

[punnaponning 0]

the bigger the takeout the bigger the stomach .

Bill has never forgotten the words of his first g/f when she dumped him. "Size does matter Bill"

[Leggy 4,089]

and further to that he maintains that increasing takeouts will increase profit in the medium to long term.

NZRB are very lucky having such an incisive wagering expert as acting CEO.

Do you think the word genius is over used ?

Yes, based on that data, you'd have to not only be a genius Punna, but have a big pair, to hold to the guiding principle that this is a short term effect and that in the longer term revenue will increase. It seems Bill's evidence that more and bigger takeouts result in a bigger one, hasn't generalised to California's profit.

The other interesting thing is that California raised stakes by ~9%. Maybe Rod, you could get your mate Don to explain the correlation between that and the 18% decline in turnover ?

Meanwhile, over at Tampa, purses have increased just under 4% in line with the similar increase in revenues.

To be fair though, you have to consider there may be other explanations for California's poor performance. Some possibilities that come to mind are the weather, the GFC, too many tracks for the population, unprofessional management at club level and lack of cooperation with the racing leadership's ideological strategies, and that Santa Anita has returned to racing on dirt and turf after removing their second failed synthetic track installation in 4 years.

[RodHill 0]

It seems Bill's evidence that more and bigger takeouts result in a bigger one, hasn't generalised to California's profit.

The other interesting thing is that California raised stakes by ~9%. Maybe Rod, you could get your mate Don to explain the correlation between that and the 18% decline in turnover ?

Meanwhile, over at Tampa, purses have increased just under 4% in line with the similar increase in revenues.

Leggy, perhaps instead of what you suggest I do, it would be a better idea to get the sheriff to come on, and censure you for continually putting up facts. He knows we can't have people putting up facts to support their argument.

[Leggy 4,089]

The trend continues

Golden Gate Mirrors Santa Anita & Handle Falls 19.4%, Both Florida Tracks Sport Handle Increases

As promised here are updated numbers (Santa Anita meet numbers with a loss of handle of $122.9 million published below previously). Click to enlarge.

Golden Gate, off 19.4%, and 15.9% per race. Tampa grows handle by 6.2% overall and 8.60% per race. Gulfstream rises 6.4% and 2.4% per race.

[Leggy 4,089]

HANA President Jeff Platt commented earlier today on the numbers.

"Make no mistake. The takeout increase in California has become a complete and utter failure. With each passing day racing customers everywhere are becoming more and more aware that racing has a high takeout problem."

Calder hopes to keep the Florida good vibes going with a North American Low 12% take pick 5, for their meet which is starting April 25th.

[Leggy 4,089]

Monday, April 25, 2011

Why Gulfstream worked

By Bill Finley

Special to ESPN.com

Anyone who might have been introduced to horse racing Saturday at Gulfstream Park never would have imagined that the sport is in trouble. The handle for the day was $13,088,424, some $3.5 million of it coming from a bet called the Rainbow Six that had horseplayers throughout North America giddy with excitement as they chased after what they hoped would be a life-changing score. Saturday was the highlight of a terrific closing weekend of what was a terrific meet.

Gulfstream has yet to provide the media with 2011 all-sources handle figures, but all indications are that they are up substantially over 2010. According to one report, handle was up by $40 million entering the final weekend, some of which had to do with a wildly successful Florida Derby weekend. Gulfstream moved the big race to a Sunday, spiced up the prior day's card and handled $36 million over the two days

Sometimes it's just too easy picking on California, but they got what they deserved when they raised the takeout and then continued to serve up a steady diet of six-horse fields.

Gulfstream owner Frank Stronach fires racetrack executives like George Steinbrenner used to axe his managers. He's run through a dozen or so top executives since he took over Gulfstream, along the way chasing a lot of competent people out of town. But even Stronach couldn't possibly fire the pair he had running the place in 2011, Steve Calabro and former trainer Tim Ritvo. Not after what they pulled off this year.

All Calabro and Ritvo did was run the meet the way any smart businessman would run any business, using common sense strategies that are amazingly hard to find in horse racing. They understood that the key to any good business is to offer a good product at fair prices. It works in the restaurant business, the widget business, the horse racing business, any business.

I have written this before, but it bears repeating. People don't dislike horse racing and they are not turning away from it when it is presented right. They dislike bad horse racing and they particularly dislike it when they are getting ripped off. Serve bad, over-priced food and your restaurant will soon go out of business. Serve bad racing with exorbitant takeout rates and

[Dennis 0]

Astonishing how simple it can be-offer a good product at fair prices and there is a good chance of increasing both turnover and profit (if costs are kept under control of course).

The above is the mantra the senior leadership (a misnomer?) team at the TAB should chant every morning.

The other quite amazing thing is that Gulfstream had an ex trainer who obviously knew about wagering strategies and how to run a succesful racing business.

One of those would be very useful in NZ given our propensity to get stakeholders involved in decision making.

[Properispomenon 1]

Golden Gate, off 19.4%, and 15.9% per race. Tampa grows handle by 6.2% overall and 8.60% per race. Gulfstream rises 6.4% and 2.4% per race.

It beggars belief that what is so apparent just from those 25 words is unable to be seen by those who inhabit TAB Tower in Petone.

[punnaponning 0]

believes that the jury is out on the price elasticity of betting worldwide.

Yet remains confident that increasing Doubles and Quinella takeouts will increase profits medium to long term. Yeah sure .

[Idolmite 2,560]

Yet remains confident that increasing Doubles and Quinella takeouts will increase profits medium to long term. Yeah sure .

did he explain how haha

[Laurie Sutherland 0]

A former Minister for Racing once told me, with a definite element of seriousness, that it wouldn't make any difference to turnovers if the takeout rate was 50%.

The Minister's reasoning: almost everyone making a bet was confident that bet would result in a profitable dividend.

From experience, I was not able to agree!

[Dennis 0]

A former Minister for Racing once told me, with a definite element of seriousness, that it wouldn't make any difference to turnovers if the takeout rate was 50%.

The Minister's reasoning: almost everyone making a bet was confident that bet would result in a profitable dividend.

From experience, I was not able to agree!

Well that probably goes back to the days when racing was the only game in town and they could treat the punters with contempt.

Times have changed dramatically, but vestiges of the old thinking remain.

Hence plummeting turnover and the larger punters going elsewhere.

[Leggy 4,089]

It beggars belief that what is so apparent just from those 25 words is unable to be seen by those who inhabit TAB Tower in Petone.

Did you really count the words Prop? That beggars belief!

[Properispomenon 1]

Did you really count the words Prop? That beggars belief!

I really did, Leggy!

In my trade an ability to count is quite an advantage, ha, and the ability to have people trusting you with their money believe that you have the ability to count is pretty much a plus, too.

Mind you, I was delated earlier this week, when ripping April off my wall calendar (a laminated school effort from one of the littlies, complete with self-drawn pic of him atop a ginormous skateboard and with his tongue poking out) and finding that their Fun Fact for May was:

There is no largest number. Choose any big number and make it bigger by adding 1 to it.

Sheesh...

[Leggy 4,089]

Wednesday, May 11 2011

TAMPA BAY DOWNS

[punnaponning 0]

the total lack of action by our leaders on this matter .

[Leggy 4,089]

Wednesday, June 15, 2011

Fort Erie Takeout Reduction Starts Strong

Without much publicity, Fort Erie has lowered the takeout on their Pick 4 wager (in Canada it is called a Win 4) This came into affect as of Sunday. Takeout was lowered from 26.2% to an industry tying low of 14%.

[Leggy 4,089]

.....on this from last weeks Bloodhorse:

http://www.bloodhorse.com/horse-racing/articles/65363/lower-takeout-makes-difference-officials-say#ixzz1ZuVI2ta2