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.
Have to remember, Pompano is now owned by Isle of Capri, a huge casino company. They KNOW about where to set slot hold and how higher holds, over the long term, result in lower win once you fry your customers. I'd like to hear more of these casino companies that are buying up racetracks saying the same thing! Getting everyone else on board - especially the states that collect some of that dough - is going to be the trick!
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