Woodbine Entertainment Group President and CEO Nick Eaves has stated that the Canadian racing giant has looked into exchange wagering and that the betting phenomenon is something that the company cannot ignore
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Eaves went on the record in regard to exchange wagering and takeout reductions with Ray Paulick on the Paulick Report.
When asked what WEG's position was on exchange wagering and if WEG has considered developing its own exchange platform, Eaves said the topic was one that his company cannot ignore.
"We are looking at it," Eaves was quoted as saying. "We can't rely on pari-mutuel wagering only. (Exchange wagering company) Betfair has five million active customers and is growing at a staggering rate. We can't ignore that."
Paulick also asked Eaves what keeps WEG from lowering its takeout to levels which are more competitive with other forms of gambling. He also asked if WEG was experimenting at all in that area.
"This year we reduced triactor takeout by two percentage points," Eaves was quoted as saying. "We hope to further reduce takeout on all bet types by an additional two percentage points by eliminating a government levy.
"We experimented by reducing Pick 4 takeout to 14.75 per cent between 2002 and 2006 and saw no impact on handle."
Eaves went on to say, "Our current strategy is to guarantee Win 4 pools. This year we have seen a 28 per cent increase on our standardbred Pick 4 pools.
"Our take-out reduction strategy is targeted at our highest volume players. In addition to our posted rebates (ranging from 0.5 per cent to 3 per cent), we offer further takeout reductions to our highest volume customers.
"It is important to note that, after purses and regulatory reductions, the track is left with 6.5 per cent!"
To read all of Eaves' comments from the 'Q&A' session, click here.
(With files from the Paulick Report)
Mr. Eaves with all due
Mr. Eaves with all due respect comparing the impact of a lower takeout win 4 of 14.75 in 2002 with today's win 4 environment is completely unfair. Firstly, in 2002 there was no incremental .20 cent bets for the smaller players to learn the bet and create churn by cashing more tickets at .20 denominations. Secondly, the Television infrastructure with TVG and Bet Night live etc wasn't available to attract new fans with an industry low 14.75 takeout.
Here is an interesting proposition. Why not drop the second win 4 on the betting card to 14.75 and promote it as a low takeout loss leader and watch how much new money gets attracted. Betting fans today are price sensitive and attracted to value. Having a 14.75 takeout for the second win 4 on the betting card gives fans a reason to play the bet for a bet that is now largely neglected by the betting public.