Bucking Trends, Canadian Handle Is Up
Despite external pressures and significantly fewer race days, the amount wagered on Canadian harness racing in 2011 exceeded its 2010 total
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While horse racing - thoroughbred, quarter horse and harness - has long reported declines in total wagering, the Canadian product is the exception to that rule. According to Standardbred Canada data, the total amount wagered on Canadian harness racing for 2011 came in at more than $440 million, up 0.64 percent (or roughly $2.7 million) from the 2010 total of $437.3 million. The amount bet per race also showed gains,up nearly nine percent from the prior year.
Amount wagered on Canadian races for 2011
| 2011 Total | 2010 Total | |
|---|---|---|
| $440,066,353 | $437,277,280 | + 0.64% |
| 2011 average mutuel per race | 2010 average mutuel per race | |
| $21,516.00 | $19,746.10 | + 8.96% |
In an effort to help stimulate wagering and bolster the handle on the Canadian product, SC offered daily picks and free past performance programs while asking horseplayers and fans, when given the choice, to "Bet Canadian." for the last two weeks of the year. The campaign began on December 14 and concluded on December 31. Over that period, wagering increased almost six million dollars over the same period in 2010.
Why all the negativity in
Why all the negativity in almost all comments posted by the “gamblers” here? I suggest they should also read the article “WEG Standardbred Handle up”
At the same time I fully recognize that everything is not coming up roses in Ontario racing but , in my opinion, there are many more fundamental problems than the “Takeout” percentage!
As to one comment regarding handle in the East, West and the Ont ‘B’ tracks, a couple of major reasons for the recent drops in Canadian handle is the essential lack of any handle in Quebec and the signicent drops in Alberta. And, yes, the contribution from the Maritimes is small but I think there has been a marked increase in handle at a few tracks such as Charlottetown, Summerside and North Sidney. And as for Ont ‘B’ tracks, from my purely subjective view, the handle in 2011 was significantly increased at such tracks as London, Windsor and probably even at Sudbury! (I just watch the daily handles reported on the SC Results page!)
BUT let’s have a look at this reduction in takeout thing, eh? I’m not a math wizard or an accountant but lets just do a little basic arithmatic here, eh?
A couple of examples -
Looking at WEG for Jan 02 2012 - The reported handle was $1,556,804. Now let’s keep it simple and assume the “takeout” is 20% (It probably may be a bit higher?) WEG keeps $311,360.80 . Now they paid out $255,000.00 in purses so this doesn’t look too bad, right?
But let’s just say they only retained 10% - That means $155,680.40. Looks like about $100,000.00 short on just the purses paid whch, of course, only represent a portion, albeit signicant , of the cost of doing business.
At 10% the handle would have to be 2,550.000.00 Just to cover the purses!
Now looking at London on the same day we see a handle of $246,563 with purses of $69.000.00 . At the same 20% Lon retains $49,312.60 already almost a $20,000.00 shortfall which at 10% with a $24,656.30 retention would leave a shortfall of over $44,300.00!
To pay $69.000.00 in purses with a 20% takeout London needs a $345.000.00 handle and at 10% would need $690,000.00
I can’t quite understand how it’s possible to continue to operate a business where the income is quite a bit less than the expenses? I know my personal budget doesn’t work that way but, then, I don’t have that nice subsidy from the slots!
BUT how long can the industry realistically expect to retain that slot subsidy? It would only take a change in the provincial government and a few politiciians who figure that that slot money could be better used in Education or Health Care (or in their Pensions!) and GoodBye Racing!
Check Premier McGinty’s announcement re cutbacks and austerity in Ontario and the need to cut subsidies for unnecessary sevices! We wont even need a change of Government!
In my opinion lowering the takeout rate to 10% or even less will never enable a mutuel handle large enough to sustain the racing industry at its present size.
Some much more drastic surgery is needed and unfortunately this will have to include, among many other things, such unwelcome steps as a marked reduction in race dates, elimination of year round racemeets, a definite opening and closing day for every track, fewer ordinary “overnight” racedays and more “events”, cleaning up and modernizing the facilities for the fans (and the horsemen), providing good and reasonably priced dining and snack food and beverage facilities at all tracks (again including for the horsemen). elimination of the corporate “For Profit” ownership of the race tracks and thus the return to the model of the “Golden Years” when the tracks were owned and operated by “Non-Profit” community or charitable organizations with mainly volunteers and above all else we have to restore the real grassroots foundation of the industry in Ontario - racing at the small town fairs.
The industry has become top heavy with the pyramid inverted to stand on its pinnacle with no foundation and it’s surely due to topple over any time soon!
In reply to Why all the negativity in by ppsphil
Philip, sorry if we come
Philip, sorry if we come across as too negative here. We’re trying to come up with some ideas to improve harness racing. I don’t see anyone reducing the takeout percentage—that’s their rice bowl—so I haven’t pushed that angle myself, but like John, I note the takeout percentage, bet accordingly, and move on.
I guess you’ve read the article on “Canada's Top Horsemen Of 2011”. Taking a quick look at the numbers, the median earnings for leading trainers making less than $500,000 is $61,605. I don’t see how these guys can sustain themselves on this kind of money, but I’m not aware of the big picture. Maybe some of these tracks operate part time and racing is done in a spirit of fun. I don’t know. Regardless, I don’t see how all of these horsemen can survive if this is all they earn over the course of a year.
Canada’s Top Trainers (Money)
Track Earnings
Charlottetown Driving Park $ 78,413
Clinton Raceway $ 51,370
Dresden Raceway $ 42,000
Exhibition Park Raceway $ 28,698
Flamboro Downs $ 284,634
Fraser Downs $ 349,492
Fredericton Raceway $ 12,151
Grand River Raceway $ 273,745
Hanover Raceway $ 122,960
Hiawatha Horse Park $ 71,839
Hippodrome Quebec $ 78,445
Inverness Raceway $ 13,389
Kawartha Downs $ 140,216
Northlands Park $ 342,442
Northside Downs $ 14,730
St. John’s Racing & Entertainment Centre $ 13,965
Sudbury Downs $ 374,178
Summerside Raceway $ 38,658
Truro Raceway $ 41,602
West Meadows Raceway $ 14,708
Western Fair Raceway $ 233,156
Windsor Raceway $ 216,633
Woodstock Raceway $ 32,419
Yorkton Exhibition $ 40,803
Average $ 121,277
Median $ 61,605
Alberta Downs $ 550,173
Georgian Downs $ 798,596
Mohawk Racetrack $ 1,730,819
Rideau Carleton Raceway $ 771,721
Woodbine Racetrack $ 2,018,859
Average $ 1,174,034
Median $ 798,596
On the positive side, at the risk of repeating myself, the sharing of information by the Canadian tracks (free programs, free broadcasts) is HUGE. I’m 500 miles away, yet I’m virtually there, and feel like Woodbine is my home track. The sharing of information shows a depth of imagination and courage that’s refreshing to say the least. Properly presented to the right audience, some of our ideas might have a chance of being realized because these guys have demonstrated that they are innovators.
Our blog has fallen off the front page and will soon die in obscurity. I plan on taking the ideas presented here, re-working them in a little more detail, and forwarding them to ORC, Standardbred Canada, and WEG both electronically in PDF and by snail mail in hard copy. Electronically to make it easier for them to send to each other. Hard copy so they know I’m a real person. If you want to know how this turns out, I guess I could blog it here or we could become Facebook buddies and discuss in more detail. But if we don’t try, we don’t get anything.
Check out the 8th race at Woodbine on 30 December, FMNW20000L5. Lady Latte, a 5 year old roan mare, took them to the quarter in 25.4, retook the lead at the half in 55.3, and led deep into the stretch where she finished third in a race that went in 1:52.4. The horse I picked finished second off a rail trip. And both Lady Latte and my horse were beaten by the favorite who charged up on the outside. But the race was really about Lady Latte. She demonstrated that pretty horses can pace. If I had tried to box a trifecta, I probably would have left her out—she looks so delicate—but isn’t she a pretty horse? Maybe if we asked them, Woodbine would sponsor a beauty contest for horses, voting done either on-line or on-site or both, and the winner presented with a trophy and blanket between the fifth and six races.
The point here is that we can go to a website that archives past races, and contemplate a beauty contest for horses because they might actually do it. They’ve got the imagination to make it a reality. Again, I say that’s HUGE.
It’s not all about the money. We go to the track to see horses race. The money is what makes this possible. Speaking strictly for myself, I like horses. I won’t allow the money get in the way.
Do you guys know any good books on handicapping harness races? I’ve been away from it for a long time and I’m kind of rusty. I’m particularly interested in how they create the morning line so I can talk intelligently about it to the WEG guys. It’s my pet peeve, I know. I remember Churchill Downs from years back, when the morning line would read 6/5, and the favorite would go off at 6/5, and if he didn’t then you knew you’d better look closer. I’d like harness racing to be more predictable that way. We could bet with more confidence if there was a closer correlation between the morning line and the actual odds.
Mr. Cardinal, i also respect
Mr. Cardinal, i also respect your point of view but our opinions differ on this subject. First off all i fully understand the math of gambling and what dropping the takeout rate from 25% to 15% means but i also understand that half measures won't work. All dropping the takeout rate to 15% will accomplish is to slow the bleeding down but it won't stop it, because the next generation of gamblers are much more educated about the importance of house take then our generation was and that is largely because of the internet and all the sports forums and poker forums that available to people to educate them.
Dropping the takeout rate to 15% not only won't get me back but it has no chance of competing for the next generation of gamblers. At 15% they will continue to avoid the race game like the plague, they will still see it as being uncompetitive and without attracting new gamblers the game is on borrowed time. For example single game sports betting the player is only at a 5% disadvantage although you have to wager $1.10 to win 1.00. Anybody that doesn't understand the math of this i can explain in a future post. So the race game has to choose, they are either going to compete or they are not. but there is no in between.
Also to even suggest the race track should take customers to the cleaners with excessive track takeouts in any pool may not be the best formula for success. One thing you are not factoring in when people play pic 4's and so on is many of these people bet those 4 races anyway so what the track gets will all balance out in the end. Put more money back in the gamblers pocket by giving them a fair payout on the tickets they cash and the handle will go up plus they can start advertising there product as being competitive. If they did that now there ads would be laughed at.
Once again i myself rarely played pick 4's. I was more win. exacta with the odd super mixed in. I did not bet every race as i believe you have to pick your spots, but when i bet i bet large amounts. However it is not up to me to tell anyone not to bet every race or take a shot at a large ticket but if they do they should get a fair return on that ticket, why should they be punished because they didn't play the horse to win. If i ever play the races again i want a fair pay off in all pools.
Mr.Cardinal to answer your
Mr.Cardinal to answer your question if i would play the races again if the takeout was 15% the answer is absolutely not, i would not even consider it. Now if the takeout was reduced to 10% so it was at least somewhat competitive with other forms of gambling the race game would have a former very big player back immediately. They would not only get me back but they would get back many other former big players who have walked away from the race game, but most importantly they would be able to market the product and compete for the next generation of gamblers which they currently have no shot at because they are so uncompetitive with other forms of gambling that they now play.
Personally i don't believe they have to de-emphasize exotic betting for win, place and show wagering, as part of the attraction of playing the races is the possibility of the large ticket. Exotic wagering is not the problem, the problem is the takeout. No matter what ticket you cash at the races the ticket wether it be win, place or show or an exacta or a superfecta never pays what it should because the racetracks keep far to much for themselves with there excessive takeouts. Make the game fair with a competitive takeout rate so people get paid a fairer amount when they cash and that and that alone is the only thing that will allow them to compete for there share of the gambling market. Until they do this they are just spinning there wheels and getting no where with all there half hearted attempts to turn things around.
For the record when i played the races win betting was where the majority of my money was spent and after that it was exactas but i do recognize that many people want the possibility of cashing a big ticket so the exotics do have there place but at the end of the day it all comes down to takeout. Right now big gamblers see the game as being uncompetitive and unfair and the race game must change this perception and there is no other way of doing it other then reducing takeouts.
In reply to Mr.Cardinal to answer your by John Carter
Mr. Carter, I understand and
Mr. Carter, I understand and respect your point about competing with the other forms of gambling but a decrease from 25% to 15% in take-out is very significant and for a big bettor, when you do the math, it is an incredible amount of additional coin coming back to our pockets. Now that is the benefit for us, the bettors.
On the other hand, there would be a huge benefit for the Industry as far as handle goes and my reasoning is as follows:
At the moment, the only perk they can come up with pertains to the Pick 4 wager. Say an average play costs $20, that $20 sits in a pool for 4 races.....so they take out 35% of that $20 and they end-up with $7.
Now take that same $20 and bet it to win, place or show in the first race (at a 15% take-out....or 10%) and assume that you cash that ticket and "re-invest" the winnings in the 2nd, 3rd and 4th races, at the end of those 4 races, even if the Industry raked "only" 15%, the industry would still end up with far more than $7 "in their pockets" than with the afore-mentioned pick 4 bet.
Industry, read this......
1- Reduce the take-out
2- Educate the patrons (old and new) on the merits of the WPS bets
3- Provide perks for those bets (i.e. extra reward points or whatever it takes...)
4- Keep the high take-out on exotics if you want !!
Even if the Industry continues with their 30-35% take-out in the exotics, the punters will be more than happy to explore the WPS pools and at the end of the day, the total handle will surely continue to climb.
It would be great if more patrons would get involved and voice their opinions on this subject!
Excellent comments and very
Excellent comments and very accurate in my view/experience by Mr. Cook, Irving, and Carter.
To some extent it is like saying that the Bar sales are going up as the Titanic sinks!
In reply to On Dec 23 of this year,the by rob irving
Robert: Here are my
Robert:
Here are my suggestions on how to CHANGE THE GAME:
• Downloading a program, making your selections, and watching the races in real time is just plain fun. It leaves me with the impression that you guys aren’t hiding anything, that you’re more interested in promoting the sport than nickel and diming us to death over every scrap of information about the races. Keep up the free-flow of information. It builds trust.
• De-emphasize exotic bets in favor of straight bets. Based on a quick look at the Boxing Day program (26 Dec 11), win, place and show bets constituted 34% of all wagers. To increase the handle, we need to increase the straight bets. To increase the straight bets, we need to make the races more predictable.
• To make the races more predictable (i.e., playable):
o The morning line should come closer to approximating the actual post-time odds. Again, looking at the Boxing Day program, the difference between the morning line odds and the actual odds of the horses that hit the board averaged 13.23 points. This seems high to me, and suggests that the races are basically unplayable.
o We need to take a closer look at the race conditions. For example, a NW1 race will include horses that have won 6 or more races, or horses that have built sizable earnings in this class without winning a race. Should we bet on the veteran from the smaller tracks, or the horse who appears to be making a career of maiden races, or the horse with a couple of starts who shows some potential? Same goes for the other NW categories. A NW5 should include horses that haven’t won five races. Making horses eligible based on earnings clouds the issue, and that’s something we don’t want if we are aiming for playable races.
o Breakers (other than interference) should be made to qualify before their next pari-mutuel start. The idea here is to present a field of reliable horses that have demonstrated they can stay flat.
o Vet scratches. It doesn’t say very much for the trainer who tries to race a sick horse. It would help if the program stated more detail other than “sick”. I would also recommend making a vet-scratched horse race in a qualifier before returning to the races. Again, the idea is demonstrating to the public that we are fielding healthy horses that are able to compete.
• On-line touts. Frankly, those guys are better than I am, but it’s hard for anyone to pick winners for an entire program day after day. A better approach might be to give each tout a set amount of money to wager per meet, and see if they can build it into a bankroll. If they’re going to pass the race, let them say so. They can still make their recommendations. The “set amount” should probably be set at how much an average patron can—or better yet—should bet over the course of a meet.
• Educating the public on handicapping races. In each program, post a listing of good books on selecting harness horses. Also in each program, it wouldn’t hurt to state that most people can’t make a living at betting horses, so don’t try. Bet what you can afford to lose. We’re not interested in making a living off people’s grocery money, and we should say so.
• Along the lines of education, I’m looking at the results for the Boxing Day program, and I see that Highbeta Blue Chip, racing for $15000, and Itrustyou, racing for $60000, both paced in 1:51.1. How can this be? I’m not trying to be a smart aleck, but if you could help me out here, I would appreciate it.
The bottom line here is that to increase the amount wagered, you have to build trust. To build trust, you have to make the races playable. Everybody—horsemen, trackmen, and the betting public—has to buy into it, or it won’t work.
All the best to you, Robert, and to the rest of you who race horses in Canada. May 2012 be a good year for you.
Cecil Cook
In reply to Robert: Here are my by Thomas248436
Cecil, some of your comments
Cecil, some of your comments are a breath of fresh air, especially when you touch on the subject of de-emphasizing the exotic bets in favor of the Win Place Show bets. Here is a suggestion for the decision makers: Poll the patrons (and former patrons) across Canada on the following: would you bet the WPS pools if the take-out was reduced to 15%? How about you Mr. Carter, would you be punting in a 15% take-out pool? Anyone else?
Instead of promoting the Win 4 bets (with guaranteed pools) the Industry should focus on easier types of bets like the WPS bets and encourage the bettors to do so (reduced take-out would be the way) and that will DEFINITELY INCREASE the handles.
Far and away, the best
Far and away, the best harness racing website out there is Canadian: Woodbine's website. What makes it best is the free flow of information. Downloading a program, making your selections, and watching the race in real time is just plain fun. It leaves me with the impression that you guys aren’t hiding anything, that you’re more interested in promoting the sport than nickel and diming us to death over every scrap of information about the races.
Wish we had that kind of imagination on this side of the border. Based on the website interviews with the drivers, trainers and owners, wish we could make a Canadian harness license a pre-requisite qualification for running for president—we would get more genuine candidates—b ut that’s another conversation for another time.
Bottom line here is that I love what you Canadians are doing for harness racing. May 2012 be a good year for all of you.
Is there a reason that
Is there a reason that canadian tracks are bucking the trend and is everything as rosy as it seems on the surface, i doubt it. First off the B tracks in ontario are probably down in wager. What the tracks do out west and in the maritimes is so small that it is not going to make much difference to the numbers. So it comes down to how the weg tracks do. Seeing as weg got into some new markets this year of course the wager is up when those new markets are added in but you can probably bet your last dollar that weg is down in pretty much all the markets that they were in the year before, the same as all other tracks in north america. So are they really bucking a trend, i think not. Now next year if weg is not able to expand into new markets then once again the overall numbers will decline again. The industry can sugarcoat things all they want to but it doesn't change the way things really are.