We'll have to start a clock on the side of the blog when the words "takeout increases to pay for things" occur in this business. It might be a heavily updated feature.
Thanks to Seth at Equidaily for bringing us these headlines.
First, in New York. NYRA has increased takeouts on us. Our ROI goes down again.
What business in the U.S. treats its customers with more contempt than horse racing? Yesterday, an across-the-board increase of 1% was added to already onerous takeout on all wagers on NYRA races, making takeout in NY State one of highest in the nation.
Second, Kentucky says they need some cash. It appears they want it from us. Have they seen our bankrolls lately?
Kentucky may consider raising taxes on betting to pay for improved racetrack and betting security and more drug testing.
If your business is falling, as betting has on racing North America-wide, do you actually think you will sell more if you raise the price?
If Sam Walton noticed he was not selling too many bar-b-ques and asked for advice and his Vice President said "I think we should raise the price of them, Sam"; that VP would wind up on the unemployment line.
Unfortunately there is no one running racing who can put their foot down and send these price raisers walking to another line of work.
At HANA we hope to make a difference, to get headlines like this out of this business forever. If you'd like to join us, please email us to the right of the page. We need your help. We can not do it alone.