John Berry the Publicity Director at Pompano Park in Florida penned a column recently, where he sounds not like an industry insider, but like a horseplayer, or wagering economist.
Like one of our members when he was the Kentucky Racing Czar for a day, John asks the question we have been asking for years - why in heavens name are we not using slot money to lower takeout? He is calling for an 8% win takeout.
I believe that just a tinge of the money that has gone for higher purses could be used to put racing on a competitive field for the bettors.
The “New Deal” begins with the thought that racing would be well served to lower the take-out to roughly the same as slots. That would mean a 92 percent payback
This article is a must read for everyone in racing. Mr. Berry has the math right and shows he has a good grasp on churn, takeouts and what our business needs to do to survive and grow.
Hat tip to View from the Grandstand.