California’s idea that the way to save racing in tough times is to raise the price of the product has drawn quick comment from media observers of the game
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Steven Crist, publisher of Daily Racing Form, was quick to point out some of the selective editing done by the California Horse Racing Board in justifying the increases.
Crist wrote, “A statement from the California racing board applauded the legislation and correctly noted that the 23.68 rate (on three-horse exotics) compares with a takeout of 26 per cent on many wagers involving three or more horses or legs in New York (‘many’ rather than ‘all’ because of New York’s 16 per cent rate on non-carryover Pick 6s). The racing board was silent, however, on comparisons with other states regarding the other takeout increase in the bill – a jump from 20.68 to 22.68 per cent on two-horse bets such as exactas and daily doubles. The silence is understandable. Only three tracks in the United States (Arapahoe Park, Canterbury and Suffolk) take more than 22 per cent on two-horse bets, while every other major racing state has significantly lower bite on them, including New York at 18.5 per cent and Kentucky and New Jersey at 19 per cent.”
Crist noted that the California board claimed that “even with this takeout increase of 2 to 3 per cent on exotic wagers, California’s takeout rates will remain lower than those in some other states with comparable, high-quality racing.” Crist refuted that, saying, “In fact, a 22.68 takeout rate on exactas and daily doubles is exorbitant and by far the highest at any major circuit in the country.”
Jeremy Plonk, writing on ESPN.com, said of the increase in west coast takeout, “Don’t insult me with another tax hike that makes the game even less attractive. I’m not an addict, and neither are the vast majority of other horseplayers. We don’t need to wager seriously on the game if we have absolutely no chance to win…The bottom line is that you can’t bet what you don’t have….Keep taking away money from the consumer and see where that gets you in a sport whose revenue is 100% consumer driven.”
Bill Finley, also writing for ESPN.com, in a column this week headed, “Why Calif. Will get away with this crime,” wrote that “The day after Christmas, they’re going to start robbing you blind.” He asked why any rational person would continue to bet on California racing, “when there are so many better racing opportunities out there?” He also asked, “What other slumping business would dare to try to improve the bottom line by increasing prices, especially when the competition gives its customers such a better deal? Betting in a casino makes a lot more sense than betting at the track. In a logical world, the house would be slashing prices and coming up with all sorts of incentives to get the customers coming back through the doors.” And he concludes by suggesting that players should stop betting at tracks that gouge them and support the ones that don’t.
(Harness Tracks of America)
One of the easiest ways to
One of the easiest ways to grow parimutuel wager is through churn. How do you create churn? LOWER THE TAKE-OUTS!!!!! Why do they not get this? They do not have a monopoly anymore......Time to get out of the 70's & make the product competitive with other forms of gambling! The government handouts will not be there forever. We need more people like Jeff Gural & Jason Settlemoir who are the only ones who seem to grasp the idea of the lower take-outs creating a higher handle through churn. Tioga showed increases in both on track & off track wager by dropping their take-outs as low as "ALLOWED".
Yes raise the price of a
Yes raise the price of a product that is already in demand decline, that should work!!
California race tracks
California race tracks raising the track takeout, YAWN, now why doesn't that surprise me. I have yet to see a single racing jurisdiction in north america that actually gets it. If the race game is going to survive and retain there customer base and attract new ones when will they catch on to the fact that they have to compete with other forms of gambling that they did not have to compete with when times were good 20 to 30 years ago. The track take out needs to be slashed at every track in north america to a maximum of 10% in all pools.