Wednesday, October 22, 2008

Hollywood to Cut Purses. TOC Wants More Cash.

The DRF reports that Hollywood Park will be cutting purses for the meet. And ADW wagering is being battled for between providers and the TOC.

Account wagering through telephone and Internet sources could be disrupted at the fall meeting. The TOC is negotiating with the four account-wagering providers licensed to do business in California - TVG, Twinspires, XpressBet, and - regarding the distribution of revenue of bets from those sources. Couto has said the TOC is seeking a higher percentage of those bets to fund purses.

Looking for more money from your partners during a downturn might seem illogical to some, but so it goes.

In contrast, the work done at Louisiana Downs, the opposite seemed to work well. Their handle jumped this past meet.

They distributed their signal widely, and offered it out at a fair price, to places like Youbet and Premier Turf Club. It worked well, as most HANA members who are businessmen and women would expect.

Now in the third year of a marketing partnership, posted increases on Louisiana Downs racing once again. The online provider doubled their handle on Louisiana Downs from 2005 to 2007, and grew by another 10% in 2008. Louisiana Downs also reached an agreement with TVG network in late July, and the racing network's average handle jumped by 105% each day.

It should be noted that this partnership was not by accident. The LA horseman agreed to work with their partners, eventhough the Thoroughbred Horseman's Group recommended that they do not.

From the story dated May 19th when this deal was struck to help handles and players:

Louisiana horsemen have approved a deal allowing and Premier Turf Club the signal to Louisiana Downs

THG president Bob Reeves said his group did not recommend Louisiana horsemen accept the deal offered by Youbet.

Players from all stripes can take advantage of LA Downs via their ADW's across the nation, and players of all sizes can be rebated, so that the egregious takeouts that have been killing our business can be relaxed. Let's see if Hollywood Park joins the party, or chooses to fight for more of the shrinking pie.

Earlier this year, when handle losses were not apparent in Cali, internet betting was considered "not a big deal". It is now.

Further, this ADW fighting situation was commented on at the Paulick Report several months ago. It seems it might be coming true. As we try and squeeze more and more money from the player it seems he is packing up his toys and playing in a new sandbox.


Anonymous said...

I can't believe they are still fighting over this with the market falling. It is like pouring gasoline on a fire.

Horse racing needs some forward thinkers. Even slots money for purses are going down. It is time to help the player and let him play at a good price!

Anonymous said...

I have basically stopped playing until such time as, at the very least, I can bet all tracks from the site of MY choosing. Until then, it will be a very occasional hobby, nothing more. This is from a guy that used to play 7 days a week.