In the face of tremendous competiton from the likes of Netflix, movie-rental stores, cable television video-on-demand, HBO, home entertainment centers, and pirated movies on the Internet, the retail movie-theater business has been able not only to hang on, but also to manage to grow.
Bill Shanklin's take here
Alert!
Saturday, January 30, 2010
Friday, January 29, 2010
Where Does All the Money Go?
Since 1998 betting revenue is down, foal crops are stable, the number of races is down; but purses are up 30%. Since 1998, horse owners don't seem to make too much money, bettors have been killed with takeout hikes, and racing has shrunk as a mainstream sport, not grown.
What good is a 30% increase in purses if we can't grow any key demand metric?
What good is a 30% increase in purses if we can't grow any key demand metric?
Thursday, January 28, 2010
Pricci Weighs In
John Pricci in today's column on NYRA, takeout, Los Alamitos and more:
Two weeks ago, HorseRaceInsider, backing the play of the Horseplayers Association of North America, implored readers to e-mail the California Horse Racing Board requesting it not raise takeout on races from Los Alamitos.
It should be clear to those who control New York’s destiny that horseplayers no longer can be taken for granted. The player is voting with his dollars, concentrating on tracks with a good product at a fair price. Still others are voting with their feet and walking away for good. This on top of a demographic that skews older by the minute.
..... and other Internet sites that post takeout rates from tracks throughout the country, today’s educated horseplayers are aware of the inequities of takeout and have been betting their money at venues where dollars go farther.
More
Two weeks ago, HorseRaceInsider, backing the play of the Horseplayers Association of North America, implored readers to e-mail the California Horse Racing Board requesting it not raise takeout on races from Los Alamitos.
It should be clear to those who control New York’s destiny that horseplayers no longer can be taken for granted. The player is voting with his dollars, concentrating on tracks with a good product at a fair price. Still others are voting with their feet and walking away for good. This on top of a demographic that skews older by the minute.
..... and other Internet sites that post takeout rates from tracks throughout the country, today’s educated horseplayers are aware of the inequities of takeout and have been betting their money at venues where dollars go farther.
More
Wednesday, January 27, 2010
Youbet Promo for Sam Houston
In another sign that ADW's are about the only ones fighting for customers, Youbet has offered a unique promotion on Sam Houston:Here's how it works:
1. Play any Pick 3 at Sam Houston on Saturday, January 30
2. For every Pick 3 ticket you cash on Youbet.com, you will earn a Winner's Bonus equal to 13.64% of your gross Pick 3 winnings for the night - effectively eliminating the 12% track takeout for the Pick 3 at Sam Houston
3. Pick 3 bonuses will be credited by Tuesday, February 2
Learn more here
Tuesday, January 26, 2010
Harness Tracks Lower Takeout
In 2003 or 2004 harness racing went through many problems that thoroughbred tracks are now going through. Several keen observers of the sport at that time cautioned thoroughbred racing that harness was a "leading indicator" of sorts - what happens in harness will happen a few years later in thoroughbred racing.
Well, we can all hope that giving their customers respect that we are currently seeing in harness racing is followed swiftly by the runners.
First we had a racing commission step in to fix a signal fight.
I am dismayed and disappointed that the respective parties are so short sighted that they opted to penalize the most important component of their joint business, the customer. Why not find a mutually acceptable means to keep the customer served?............Are racing’s customers in such great supply that it can afford the luxury of turning off the signal? Today, customers have many options on where to spend their “disposable” dollars. They don’t need horse racing, horse racing needs them!
Within two weeks the two jurisdictions this affected were opened up to bettors while the participants worked out their differences.
Next we had the Meadowlands push their 15% takeout pick 4 and increase the pool guarantee.
Now it is announced today that Balmoral park has slashed their takeout on their pick 4 almost in half, to 15%. They have also made some pool variety changes for their 2010 meet.
We at HANA have heard rumblings that harness tracks and jurisdictions are taking lower takeout very seriously. We hope to report more good news as we get it. And we hope it does not take years for thoroughbred racing to follow suit.
Well, we can all hope that giving their customers respect that we are currently seeing in harness racing is followed swiftly by the runners.
First we had a racing commission step in to fix a signal fight.
I am dismayed and disappointed that the respective parties are so short sighted that they opted to penalize the most important component of their joint business, the customer. Why not find a mutually acceptable means to keep the customer served?............Are racing’s customers in such great supply that it can afford the luxury of turning off the signal? Today, customers have many options on where to spend their “disposable” dollars. They don’t need horse racing, horse racing needs them!
Within two weeks the two jurisdictions this affected were opened up to bettors while the participants worked out their differences.
Next we had the Meadowlands push their 15% takeout pick 4 and increase the pool guarantee.
Now it is announced today that Balmoral park has slashed their takeout on their pick 4 almost in half, to 15%. They have also made some pool variety changes for their 2010 meet.
We at HANA have heard rumblings that harness tracks and jurisdictions are taking lower takeout very seriously. We hope to report more good news as we get it. And we hope it does not take years for thoroughbred racing to follow suit.
NY OTB to Close - Things Change
It was announced that the New York city OTB network will close on March 30th, unless their reorganization plan is approved. One part of the plan calls for : "the state's tracks should "set the stage" to earn more revenue from simulcasting by increasing the rate for their signals."
So, they want to jack up rates (it does not matter where they jack them up, there is only one end user). That sounds a little anachronistic to us. It's not like it is 1986.
So, they want to jack up rates (it does not matter where they jack them up, there is only one end user). That sounds a little anachronistic to us. It's not like it is 1986.
Saturday, January 23, 2010
Roger Stein on AM830; Asks: Horseplayers to "Stand Up" Against Los Alamitos
Roger Stein, the So Cal based trainer, asked horseplayers to take a stand to protest the Los Alamitos takeout increase on his radio show today.
"It [the takeout increase] is a mistake." Stein said.
"Horseplayers have to come together...... to say they are not going to take it anymore. Unite, tell them we are not going to be gouged anymore. Pick a day, pool don't play."
His guests on the show agreed.
Bettor Bob: "this is hardball. They say they want to compete with other jurisdictions. They want to compete alright - by competing with others who rip off their customers."
Guest John Hardoon "2 full points is absurd and it is madness."
Some Los Al horseplayers, according to our inbox have been taking a stand thus far it appears. Handle for the first two days has not been good. For a recap, with full comparisons, click here.
"It [the takeout increase] is a mistake." Stein said.
"Horseplayers have to come together...... to say they are not going to take it anymore. Unite, tell them we are not going to be gouged anymore. Pick a day, pool don't play."
His guests on the show agreed.
Bettor Bob: "this is hardball. They say they want to compete with other jurisdictions. They want to compete alright - by competing with others who rip off their customers."
Guest John Hardoon "2 full points is absurd and it is madness."
Some Los Al horseplayers, according to our inbox have been taking a stand thus far it appears. Handle for the first two days has not been good. For a recap, with full comparisons, click here.
Friday, January 22, 2010
Opening Night at Los Alamitos: Handle Down by 25%
Last week, despite horseplayer representation against it, the CHRB raised takeout at Los Alamitos by 2% in WPS and exotics - a more than 10% increase in prices.
The takeout increase went into effect last night. After receiving player emails and reading message boards all week (including a letter sent and posted here on the blog by a player) we suspected that that opening night handle would be off in some way. It appears some horseplayers sent a message to horse racing last night.
Last night the handle at the So Cal track was down 25%.
From a horseplayer:
Comparing tonight's numbers to last Thursday's numbers.....
Both nights had 8 races with basically equal quality and field size.
Tonight's total handle $577K
Last Thursday's total handle $767K
Down 25%
I'm sure they'll blame it on the weather and SA canceling.......BUT.......
On track handle was only down 21%
In-state handle was down 26%
Out of state and ADW handle was down 24%
If it was just the weather, why was non-Ca handle down 24%?
According to another Los Al player:
"I looked at Los Al's handle for all of 2009. The average Thursday handle for the 47 cards they ran was appx 756k
The single worst handle was on 6-25-09, 638,624
Only 10 of the 47 days were under 700k
So tonights handle was easily the worst in recent history."
It should be noted that new CHRB Chair Keith Brackpool was with HANA President Jeff Platt and other horseplayers against the increase. Via the DRF: "Brackpool was a vocal challenger to a proposal by Los Alamitos to increase takeout by 2 percent to help satellite locations that are suffering business declines. The track compromised by allowing the increase to lapse in early September. Brackpool was the only commissioner to vote against the plan. "It's a slippery slope," he said of raising takeout. "I don't like it."
As HANA members stated in our recently completed survey, takeout rates were their number one issue. They understand that in the long run, a takeout increase lowers handle, lowers pool size and decreases racings growth, and studies by Cummings and the University of Louisville (not to mention comprehensive empirical evidence) backs this up. Horseplayers want racing to grow, not recede. We commend horseplayers for energizing themselves on this issue.
If you would like to join us at HANA we need your support. You can do that right here. It only takes a minute.
The takeout increase went into effect last night. After receiving player emails and reading message boards all week (including a letter sent and posted here on the blog by a player) we suspected that that opening night handle would be off in some way. It appears some horseplayers sent a message to horse racing last night.
Last night the handle at the So Cal track was down 25%.
From a horseplayer:
Comparing tonight's numbers to last Thursday's numbers.....
Both nights had 8 races with basically equal quality and field size.
Tonight's total handle $577K
Last Thursday's total handle $767K
Down 25%
I'm sure they'll blame it on the weather and SA canceling.......BUT.......
On track handle was only down 21%
In-state handle was down 26%
Out of state and ADW handle was down 24%
If it was just the weather, why was non-Ca handle down 24%?
According to another Los Al player:
"I looked at Los Al's handle for all of 2009. The average Thursday handle for the 47 cards they ran was appx 756k
The single worst handle was on 6-25-09, 638,624
Only 10 of the 47 days were under 700k
So tonights handle was easily the worst in recent history."
It should be noted that new CHRB Chair Keith Brackpool was with HANA President Jeff Platt and other horseplayers against the increase. Via the DRF: "Brackpool was a vocal challenger to a proposal by Los Alamitos to increase takeout by 2 percent to help satellite locations that are suffering business declines. The track compromised by allowing the increase to lapse in early September. Brackpool was the only commissioner to vote against the plan. "It's a slippery slope," he said of raising takeout. "I don't like it."
As HANA members stated in our recently completed survey, takeout rates were their number one issue. They understand that in the long run, a takeout increase lowers handle, lowers pool size and decreases racings growth, and studies by Cummings and the University of Louisville (not to mention comprehensive empirical evidence) backs this up. Horseplayers want racing to grow, not recede. We commend horseplayers for energizing themselves on this issue.
If you would like to join us at HANA we need your support. You can do that right here. It only takes a minute.
Monday, January 18, 2010
CA Takeout Increase
The following was written for me by a fellow horseplayer who is a HANA supporter. I agree 100% with every word:An Open Letter to Los Alamitos Horseplayers
Last week HANA Pres Jeff Platt spoke at a CHRB meeting in opposition to a proposed 2% takeout increase at Los Alamitos. The CHRB Board, despite the evidence presented that an increase in takeout rates would have a negative impact on handle and revenues, decided to institute the raise. They also included a review process, where by the CHRB would from time to time review Los Alamitos handle numbers between now and Sept 8th, 2010, in order to monitor the effect of this takeout increase on handle.
If the handle numbers come back weak, and show that horseplayers are reacting negatively to this takeout increase, there is a high likelihood it will be rescinded. If the handle numbers come back unchanged, there is a high likelihood the takeout increase will be made permanent. It is also likely, in our opinion, that if Los Alamitos handle is strong, that other California tracks will follow suit with takeout raises of their own. We know this would have a very negative effect on you, as a horseplayer, and in return on California Racing as a whole.
You, as a Los Alamitos bettor, have a very big say in all of this. Each dollar bet at Los Alamitos is a vote for making the takeout increase permanent, and a vote towards seeing higher takeouts across California. Each dollar withheld from Los Alamitos is a vote towards rescinding this takeout increase, and discrediting the notion that racing's revenue problems can be solved by simply raising the price of an already overpriced product. You are in the enviable position to have a direct and measurable impact on the future of California racing, and to make a statement on behalf of horseplayers everywhere.
We ask you to consider these facts, and we trust that your actions and decisions will help to bring about a better and brighter future for this game.
Please pass this message on to fellow horseplayers everywhere.
Jeff Platt
President, HANA
Please lend us a hand at HANA by signing up here.
Sunday, January 17, 2010
Trends v Bubbles
It was reported that NYRA wagering was off over 10% in 2009. That's no surprise, we are used to this news lately, however, it is usually dismissed as "the economy" rather than systemic problems - almost like we were somehow rolling in dough before this recessionary period.
We hope we move past that soon, and get at the issues at hand.
Housing Bubble
Pari-Mutuel Trend (Handle 2003-2009)
We hope we move past that soon, and get at the issues at hand.
Housing Bubble
Pari-Mutuel Trend (Handle 2003-2009)
Friday, January 15, 2010
If a Little Harness Track Can do it
We spoke before here about the Ontario Racing Commission stepping in with signal disputes in that Canadian province. They pretty much said "stop messing with racings customers and get things done."
Well, announced today, a small harness track, in a signal dispute has had their contract extended, so horseplayers can play racing while they work out their differences.
The Hiawatha Horse Park has announced that an agreement has been reached between itself and the Ontario Harness Horse Association in regard to the current simulcasting impasse. Hiawatha has announced that starting Thursday, January 21 the simulcast room will be back up and running.
Hiawatha and OHHA have agreed to extend their existing contract and will continue to discuss a new one that will benefit both the local horseman and the racetrack.
Meanwhile back at the ranch...........
"Tracknet Dispute Taking its Toll" screams a headline on the bloodhorse.
A dispute over signal rates between TrackNet Media Group and 17 racetracks in the Mid-Atlantic region is a primary reason Gulfstream Park’s interstate wagering handle was down about 15% through the first seven days of its 2010 meet
In case one might say "horseplayers have short memories, who cares?" We point you to Tom at Paceadvantage, who seems to remember last years California signal problems well. He had this to pointedly say to California's current handle problems.
"....this is kinda fun to watch them sink - the lousy bastards that shut us all out a while back - now they wonder why no one wants to bet their pathetic excuse of a race track. What goes around, comes around. "
Time will tell if Tracknet is remembered the same way by horseplayers like Tom.
Well, announced today, a small harness track, in a signal dispute has had their contract extended, so horseplayers can play racing while they work out their differences.
The Hiawatha Horse Park has announced that an agreement has been reached between itself and the Ontario Harness Horse Association in regard to the current simulcasting impasse. Hiawatha has announced that starting Thursday, January 21 the simulcast room will be back up and running.
Hiawatha and OHHA have agreed to extend their existing contract and will continue to discuss a new one that will benefit both the local horseman and the racetrack.
Meanwhile back at the ranch...........
"Tracknet Dispute Taking its Toll" screams a headline on the bloodhorse.
A dispute over signal rates between TrackNet Media Group and 17 racetracks in the Mid-Atlantic region is a primary reason Gulfstream Park’s interstate wagering handle was down about 15% through the first seven days of its 2010 meet
In case one might say "horseplayers have short memories, who cares?" We point you to Tom at Paceadvantage, who seems to remember last years California signal problems well. He had this to pointedly say to California's current handle problems.
"....this is kinda fun to watch them sink - the lousy bastards that shut us all out a while back - now they wonder why no one wants to bet their pathetic excuse of a race track. What goes around, comes around. "
Time will tell if Tracknet is remembered the same way by horseplayers like Tom.
Thursday, January 14, 2010
The CHRB's Chance to Make Some Good Lemonade
I read a marketing blog post recently about making lemonade. The author looked at the difference between two lemonade stands. One was the traditional one; one that you and I might have run when we were kids - some paper cups, some lemonade and a price tag (in this case $1).
The second one was different:
"The lemonade is free, but there's a big tip jar. When you pull up, the owner of the stand beams as only a proud eleven year old girl can beam. She takes her time and reaches into a pail filled with ice and lemons. She pulls out a lemon. Slices it. Then she squeezes it with a clever little hand juicer.
The whole time that's she's squeezing, she's also talking to you, sharing her insights (and yes, her joy) about the power of lemonade to change your day."
Lemonade stand #2 makes five times the money lemonade stand number one does.
Engaging your customers and going the extra mile like the little girl with the second lemonade stand is something that has alluded racing for a long time; in fact it has alluded a great many companies. Racing is a unique experience, and its customers are a unique breed. Organizations like HANA see this first hand, because our members, whether they agree with everything we stand for or not, are very passionate.
This week we have asked folks to let their voice be heard, and send the California Horse Racing Board an email about a discussion item on Friday's meeting. The item, a raise in takeout, we believe is not in the best long-term interest of California horse racing.
We hope the board chooses to be proactive and listen and engage their customers - let's be lemonade stand #2 tomorrow at the meeting.
We look forward to speaking with them on Friday, and beginning a productive dialogue to hopefully return California racing to a better tomorrow.
If you have not sent your email out to the Board, you can by clicking here. To all players who have sent one - thank you. To the California horseplayers who have been circulating the blog post, and the email address and their opinions, to friends and the media.... good for you and we are glad there are so many of you passionate about the game! To people like Ray Paulick and John Pricci who have linked or spoken about the issue, a big thumbs up and our thanks.
If you have not joined HANA yet and want to, please sign up here. It's free!
The second one was different:
"The lemonade is free, but there's a big tip jar. When you pull up, the owner of the stand beams as only a proud eleven year old girl can beam. She takes her time and reaches into a pail filled with ice and lemons. She pulls out a lemon. Slices it. Then she squeezes it with a clever little hand juicer.
The whole time that's she's squeezing, she's also talking to you, sharing her insights (and yes, her joy) about the power of lemonade to change your day."
Lemonade stand #2 makes five times the money lemonade stand number one does.
Engaging your customers and going the extra mile like the little girl with the second lemonade stand is something that has alluded racing for a long time; in fact it has alluded a great many companies. Racing is a unique experience, and its customers are a unique breed. Organizations like HANA see this first hand, because our members, whether they agree with everything we stand for or not, are very passionate.
This week we have asked folks to let their voice be heard, and send the California Horse Racing Board an email about a discussion item on Friday's meeting. The item, a raise in takeout, we believe is not in the best long-term interest of California horse racing.
We hope the board chooses to be proactive and listen and engage their customers - let's be lemonade stand #2 tomorrow at the meeting.
We look forward to speaking with them on Friday, and beginning a productive dialogue to hopefully return California racing to a better tomorrow.
If you have not sent your email out to the Board, you can by clicking here. To all players who have sent one - thank you. To the California horseplayers who have been circulating the blog post, and the email address and their opinions, to friends and the media.... good for you and we are glad there are so many of you passionate about the game! To people like Ray Paulick and John Pricci who have linked or spoken about the issue, a big thumbs up and our thanks.
If you have not joined HANA yet and want to, please sign up here. It's free!
Tuesday, January 12, 2010
CHRB Meeting this Friday - Let your thoughts be known via email
This Friday there is a CHRB meeting in California. One of the items on the agenda is the following:
"Discussion and action by the Board regarding an increase in the take-out on conventional and exotic wagers on races conducted by quarter horse racing associations as permitted pursuant to Assembly Bill 246 (Price), Chapter 226, Statutes of 2009."
We believe that any takeout increase, for any wagering is not a good thing in, as takeout increases have been proven time and time again to lower handle, and lower interest on horse racing. Jeff Platt, HANA President will be at the meeting and they have allowed him to speak on some of the studies which show takeout increases hurt, don't help racing.
If you agree and want your voice heard we need your help. If you cut the following and place it in your emailer, and send it to "BonS@chrb.ca.gov" you will be registering your displeasure with takeout increases. Please use this in the subject header: "Please say no to any takeout increases"
Dear CHRB Member,
It has been brought to my attention that this item will be discussed at the upcoming CHRB meeting on January 15th, 2010.
"Discussion and action by the Board regarding an increase in the take-out on conventional and exotic wagers on races conducted by quarter horse racing associations as permitted pursuant to Assembly Bill 246 (Price), Chapter 226, Statutes of 2009."
Takeout has an optimal pricing point. The racing industry has spent several hundred thousand dollars for economic studies confirming that fact. They have shown when takeout is increased, the long term result is detrimental to racing. Unfortunately, so far racing has chosen to ignore recommendations found in their own paid-for studies.
As a horseplayer and racing customer I would like to voice my strong opposition to any takeout increase in California, whether that be for quarterhorse, harness, or thoroughbred racing.
Thank you.
Thank you for your support!
"Discussion and action by the Board regarding an increase in the take-out on conventional and exotic wagers on races conducted by quarter horse racing associations as permitted pursuant to Assembly Bill 246 (Price), Chapter 226, Statutes of 2009."
We believe that any takeout increase, for any wagering is not a good thing in, as takeout increases have been proven time and time again to lower handle, and lower interest on horse racing. Jeff Platt, HANA President will be at the meeting and they have allowed him to speak on some of the studies which show takeout increases hurt, don't help racing.
If you agree and want your voice heard we need your help. If you cut the following and place it in your emailer, and send it to "BonS@chrb.ca.gov" you will be registering your displeasure with takeout increases. Please use this in the subject header: "Please say no to any takeout increases"
Dear CHRB Member,
It has been brought to my attention that this item will be discussed at the upcoming CHRB meeting on January 15th, 2010.
"Discussion and action by the Board regarding an increase in the take-out on conventional and exotic wagers on races conducted by quarter horse racing associations as permitted pursuant to Assembly Bill 246 (Price), Chapter 226, Statutes of 2009."
Takeout has an optimal pricing point. The racing industry has spent several hundred thousand dollars for economic studies confirming that fact. They have shown when takeout is increased, the long term result is detrimental to racing. Unfortunately, so far racing has chosen to ignore recommendations found in their own paid-for studies.
As a horseplayer and racing customer I would like to voice my strong opposition to any takeout increase in California, whether that be for quarterhorse, harness, or thoroughbred racing.
Thank you.
Thank you for your support!
Finding Out the Hard Way About Slots
For years racing has known that slots and slot deals were predicated on a band-aid, and that deals drawn up in 2000 would look very different to deals drawn up in 2010. Jeff Gural, the New York real estate magnate and owner of harness track's Vernon and Tioga, said several years ago when cautioning that we have to do something with the cash to grow the wagering part of the sport, not just the supply side of it: "When slots ask why we need racing, we better have an answer".
In late 2009, Pennsylvania took about 16% of the funding from slots that was earmarked for racing. Now we see similar in Maryland, before slots have even been installed.
A bill introduced to the Maryland House of Delegates would redistribute revenues from the video lottery terminals, allotting as much as $50 million more to the state for the purchase of the machines than was previously earmarked. That money comes at the expense of the purse dedication account -- funds set aside to increase winnings for racers, which would be slashed in half.
Until slots money is used in a more beneficial way - to grow the bet, and the customer base so we can stand on our own two feet, instead of used solely for purses - this will probably be common-place in racing. The pie gets shrunk, but we can not even withhold signals or go on strike to ask for a bigger slice, as is the norm in racing. The government will simply tell racing to take a hike; ironically something that horseplayers have been telling racing for some time now, as the massive handle losses of the last six years show.
In late 2009, Pennsylvania took about 16% of the funding from slots that was earmarked for racing. Now we see similar in Maryland, before slots have even been installed.
A bill introduced to the Maryland House of Delegates would redistribute revenues from the video lottery terminals, allotting as much as $50 million more to the state for the purchase of the machines than was previously earmarked. That money comes at the expense of the purse dedication account -- funds set aside to increase winnings for racers, which would be slashed in half.
Until slots money is used in a more beneficial way - to grow the bet, and the customer base so we can stand on our own two feet, instead of used solely for purses - this will probably be common-place in racing. The pie gets shrunk, but we can not even withhold signals or go on strike to ask for a bigger slice, as is the norm in racing. The government will simply tell racing to take a hike; ironically something that horseplayers have been telling racing for some time now, as the massive handle losses of the last six years show.
Friday, January 8, 2010
Waldrop on Pricing - The Not-So-Merry-Go-Round
Alex Waldrop responded to some of the infighting happening in racing, including the Tracknet/Mid-Atlantic difficulties.
Two parts we believe miss the boat:
You see, the reason for these disputes is almost always the same. Racetracks, because they spend millions to operate live racing venues, and horsemen, because they understandably need higher purses to cover at least a portion of the costs associated with owning, training and racing their horses, all want a larger share of the fees derived from wagering at remote distribution outlets such as other tracks, ADWs and OTBs. But distributor tracks, OTBs and ADWs likewise have costs associated with their operations leading to their desire for a significant share of the fees.
and
Just this week, 3.1 million Cablevision subscribers in New York, New Jersey and Connecticut have been denied access to celebrity Chef and noted Thoroughbred owner Bobby Flay and “Design Star.” At issue is the price Cablevision will pay to Scripps (owner of the Food Network and HGTV) for the right to distribute those channels. Scripps says it costs money to produce these channels (sound familiar?), and it is demanding an undisclosed increase in fees.
What HANA, and horseplayers who live, breathe and study wagering economics want to get through to the people who run racing is the following: The share of the fees going to ADW's, allow ADW's to offer lower takeout (at some ADW's you can get lower effective takeout at many tracks to help your bankroll last longer, and contribute more to racing), better prices (like Youbet's 10% increase on pick 4 tickets when you hit one), and other customer-centric benefits to keep us engaged, and betting. The short-sightedness is not on "greedy players", the short-sightedness, as we see it, lies on horseman groups and places like Tracknet that are cutting off their nose to spite their face (you used to be able to get a decent takeout reduction at Magna and Tracknet tracks - now good luck. The prices have increased the past two years).
Second, using a cable television example, we believe is specious. We are not fighting over broadcast rights, or anything of the sort with set pricing. We are setting margins. When margins are increased, bettors go away. This is not selling a widget, or a cable TV show. We're bettors, not consumers of a product with a finite amount of money to do so. Our bankroll grows, decreases or falls apart based on margins. When we last longer, racing makes more money. Until we start pari-mutuelly betting if Bobby Flay's souffle will be overdone, or just right, it is comparing apples to oranges.
We are on a death spiral, and the business continues to roll with this specious premise, only making it worse. When these groups ask for a bigger slice of the shrinking pie and fight about it, they lose wagering dollars, because less is given to the player, and players have less to rebet. Handle then goes down.
It's why it is a Merry-go-round, and it is not so merry, it is maddening:
Track asks for more from horsemen, horsemen ask more from tracks
They decide to ask more from the horseplayer by going after ADW's and OTB's
They pat themselves on the back when they get a deal done
They think they have more for purses and more for the track
Then over the next 12 months (surprise, surprise) handle goes down because they increased margins on the player and/or signal availability. Then when they count the chips, they have less money than they started with.
Then we hop on the little horsey at the head of the Merry-go-round. They do the same thing over again (fight over signals, ask for more money and end up with less), unable to see they were the problem in the first place.
Albert Einstein said that doing the same thing over again and expecting a different result is the definition of insanity. Disputes like this prove that to be the case - handle has been down every year in real terms since the early 2000's - no it is not the economy. When will the spiral end? When will they stop increasing margins and expect more money at the end of the day? Your guess is as good as ours.
Regardless, Alex, please give the game some help; we think you care about racing. Do not fight about gambling economics without having an expert on gambling economics at the table with you - try Eugene Christiansen, or Wil Cummings - I am sure they can help. Maybe we can stop the handle losses and the infighting. It is becoming painfully hard to watch.
Two parts we believe miss the boat:
You see, the reason for these disputes is almost always the same. Racetracks, because they spend millions to operate live racing venues, and horsemen, because they understandably need higher purses to cover at least a portion of the costs associated with owning, training and racing their horses, all want a larger share of the fees derived from wagering at remote distribution outlets such as other tracks, ADWs and OTBs. But distributor tracks, OTBs and ADWs likewise have costs associated with their operations leading to their desire for a significant share of the fees.
and
Just this week, 3.1 million Cablevision subscribers in New York, New Jersey and Connecticut have been denied access to celebrity Chef and noted Thoroughbred owner Bobby Flay and “Design Star.” At issue is the price Cablevision will pay to Scripps (owner of the Food Network and HGTV) for the right to distribute those channels. Scripps says it costs money to produce these channels (sound familiar?), and it is demanding an undisclosed increase in fees.
What HANA, and horseplayers who live, breathe and study wagering economics want to get through to the people who run racing is the following: The share of the fees going to ADW's, allow ADW's to offer lower takeout (at some ADW's you can get lower effective takeout at many tracks to help your bankroll last longer, and contribute more to racing), better prices (like Youbet's 10% increase on pick 4 tickets when you hit one), and other customer-centric benefits to keep us engaged, and betting. The short-sightedness is not on "greedy players", the short-sightedness, as we see it, lies on horseman groups and places like Tracknet that are cutting off their nose to spite their face (you used to be able to get a decent takeout reduction at Magna and Tracknet tracks - now good luck. The prices have increased the past two years).
Second, using a cable television example, we believe is specious. We are not fighting over broadcast rights, or anything of the sort with set pricing. We are setting margins. When margins are increased, bettors go away. This is not selling a widget, or a cable TV show. We're bettors, not consumers of a product with a finite amount of money to do so. Our bankroll grows, decreases or falls apart based on margins. When we last longer, racing makes more money. Until we start pari-mutuelly betting if Bobby Flay's souffle will be overdone, or just right, it is comparing apples to oranges.
We are on a death spiral, and the business continues to roll with this specious premise, only making it worse. When these groups ask for a bigger slice of the shrinking pie and fight about it, they lose wagering dollars, because less is given to the player, and players have less to rebet. Handle then goes down.
It's why it is a Merry-go-round, and it is not so merry, it is maddening:
Track asks for more from horsemen, horsemen ask more from tracks
They decide to ask more from the horseplayer by going after ADW's and OTB's
They pat themselves on the back when they get a deal done
They think they have more for purses and more for the track
Then over the next 12 months (surprise, surprise) handle goes down because they increased margins on the player and/or signal availability. Then when they count the chips, they have less money than they started with.
Then we hop on the little horsey at the head of the Merry-go-round. They do the same thing over again (fight over signals, ask for more money and end up with less), unable to see they were the problem in the first place.
Albert Einstein said that doing the same thing over again and expecting a different result is the definition of insanity. Disputes like this prove that to be the case - handle has been down every year in real terms since the early 2000's - no it is not the economy. When will the spiral end? When will they stop increasing margins and expect more money at the end of the day? Your guess is as good as ours.
Regardless, Alex, please give the game some help; we think you care about racing. Do not fight about gambling economics without having an expert on gambling economics at the table with you - try Eugene Christiansen, or Wil Cummings - I am sure they can help. Maybe we can stop the handle losses and the infighting. It is becoming painfully hard to watch.
Thursday, January 7, 2010
Sound Advice
In our recent HANA survey we noticed that a good many of you (over 50%) do not get any cash rewards whatsoever. This is not a surprise, as on-track players, simulcast players and smaller players at various ADW's have a tough time getting their takeout reduced. However, one scribe seems to think (and we agree) that being a successful horseplayer means one must shop for the best deal:
If you are one of the many people trying to make money by handicapping horse races, you know just how hard it is to make a profit. One of the reasons is the nature of horseracing itself. It is just a very unpredictable sport because there are so many variables. As if that wasn’t enough there is also the greed factor.
I am not talking about the greed of the bettors, I am talking about the greed of the states and governing authorities who take so much out of the pools that there is hardly any chance at all to make a profit. Back in the golden days of horse racing, legal bookies used to have to compete for your betting action. They would shave their own percentage to the bone in order to get your action.
But now the states have sewn it up so there is no competition and they can feed off racing while also criticizing it at the same time. But, there is one thing that you can do to counteract their methods. You can shop around for the lowest takeout and play those tracks while avoiding the tracks with a higher take.
To read more it's here.
We have been trying to get through our ADW ratings with rewards components for you. However, time is not on our side this year with so many issues to work on, so we are lax on that. We would like to get this done, and add some of the excellent on track rewards programs, like Hawthorne's where you can earn up to a 4% reduction in takeout. If any players would like to share where they are getting good deals, please do in the comments section below. As well, if you are looking to improve your bottom line, the HANA track ratings here list all tracks and their takeouts.
If you are one of the many people trying to make money by handicapping horse races, you know just how hard it is to make a profit. One of the reasons is the nature of horseracing itself. It is just a very unpredictable sport because there are so many variables. As if that wasn’t enough there is also the greed factor.
I am not talking about the greed of the bettors, I am talking about the greed of the states and governing authorities who take so much out of the pools that there is hardly any chance at all to make a profit. Back in the golden days of horse racing, legal bookies used to have to compete for your betting action. They would shave their own percentage to the bone in order to get your action.
But now the states have sewn it up so there is no competition and they can feed off racing while also criticizing it at the same time. But, there is one thing that you can do to counteract their methods. You can shop around for the lowest takeout and play those tracks while avoiding the tracks with a higher take.
To read more it's here.
We have been trying to get through our ADW ratings with rewards components for you. However, time is not on our side this year with so many issues to work on, so we are lax on that. We would like to get this done, and add some of the excellent on track rewards programs, like Hawthorne's where you can earn up to a 4% reduction in takeout. If any players would like to share where they are getting good deals, please do in the comments section below. As well, if you are looking to improve your bottom line, the HANA track ratings here list all tracks and their takeouts.
Wednesday, January 6, 2010
Operation Tampa
Most of North America is under a deep freeze. I think I saw polar bears fighting for scraps out my door today..... and I was in Missouri. But that should all change come February 6th as we will be having a HANA Day at the races at lovely Tampa Bay Downs.We cannot be specific on who will be going, but maybe we can shed a little light on that.
Ray Paulick will not be there, but Kevin Bacon? Maybe, just maybe.
Gene Simmons will not be there, but we are working on the lead signer from Whitesnake.
Teri Hatcher will not be there, but word is her husband looks exactly like Tampa GM Peter Berube. He will be there..... for sure.
We should have some events planned for the day, and there should be some like-minded horseplayers to mingle with, along with some HANA board members, including Theresia. If you are in the area, or plan on going sometime this meet, what about February 6th?
Email Theresia@hanaweb.org for details. And we'll have further updates here on the blog, too.
Tuesday, January 5, 2010
Responding Properly
Dave Carroll is a singer in a band. On a trip he and his band were taking via United Airlines his guitar was damaged. He tried to get compensation for the damage from the airline, but was met with resistance. After becoming frustrated he wrote a song "United Breaks Guitars" and it was an instant viral hit - youtube has shown the video over 7 million times.
In the age of social networking, when customers speak, there must be a response, or the business can be damaged.
It is no secret that racing has not done well responding to both business problems and customer problems, but there is a sign this is changing.
In Ontario, the Ontario Racing Commission has stepped in to tell fighting horsemen and tracks (in harness racing) to get a deal done. The signal has been shut off at two tracks as of December 31st and customers are left in the cold - unable to bet if they live in a tracks "home area". Years ago the Commission would not have stepped in and allowed them to fight. Not any longer, because customers are being responded to, in a flash:
I am dismayed and disappointed that the respective parties are so short sighted that they opted to penalize the most important component of their joint business, the customer. Why not find a mutually acceptable means to keep the customer served?............Are racing’s customers in such great supply that it can afford the luxury of turning off the signal? Today, customers have many options on where to spend their “disposable” dollars. They don’t need horse racing, horse racing needs them!
What message is the industry sending to government, a government that continues to support horse racing like no other government in North America?
In Australia, a jockey is being looked at for what the commission describes as a curious ride on a favorite.
"You stayed inside where you were then in a position where you had 15 horses dictating what happened to you,'' Birch said. "There would be plenty of people out there thinking she (Deer Valley) had a nice little look around for next week.''
Horseplayers gripe about a lot, and more than likely 99% of the time it is just blowing off steam. However, when hundreds of people at the track and thousands at home question a ride, or a result via a reversal of form, they need to know that their money is respected. (h/t to Equidaily)
Both of those items are good to see.
In the US, unfortunately things are not so rosy. As we all know, signals are being withheld from horseplayers via the Trackent/Mid-Atlantic dispute. It is a sad commentary on racing, but wouldn't it be nice if there was a commission like Ontario's that stepped in to tell the parties to get things done? If the parties do not care about customers, maybe they should be forced to.
In the age of social networking, when customers speak, there must be a response, or the business can be damaged.
It is no secret that racing has not done well responding to both business problems and customer problems, but there is a sign this is changing.
In Ontario, the Ontario Racing Commission has stepped in to tell fighting horsemen and tracks (in harness racing) to get a deal done. The signal has been shut off at two tracks as of December 31st and customers are left in the cold - unable to bet if they live in a tracks "home area". Years ago the Commission would not have stepped in and allowed them to fight. Not any longer, because customers are being responded to, in a flash:
I am dismayed and disappointed that the respective parties are so short sighted that they opted to penalize the most important component of their joint business, the customer. Why not find a mutually acceptable means to keep the customer served?............Are racing’s customers in such great supply that it can afford the luxury of turning off the signal? Today, customers have many options on where to spend their “disposable” dollars. They don’t need horse racing, horse racing needs them!
What message is the industry sending to government, a government that continues to support horse racing like no other government in North America?
In Australia, a jockey is being looked at for what the commission describes as a curious ride on a favorite.
"You stayed inside where you were then in a position where you had 15 horses dictating what happened to you,'' Birch said. "There would be plenty of people out there thinking she (Deer Valley) had a nice little look around for next week.''
Horseplayers gripe about a lot, and more than likely 99% of the time it is just blowing off steam. However, when hundreds of people at the track and thousands at home question a ride, or a result via a reversal of form, they need to know that their money is respected. (h/t to Equidaily)
Both of those items are good to see.
In the US, unfortunately things are not so rosy. As we all know, signals are being withheld from horseplayers via the Trackent/Mid-Atlantic dispute. It is a sad commentary on racing, but wouldn't it be nice if there was a commission like Ontario's that stepped in to tell the parties to get things done? If the parties do not care about customers, maybe they should be forced to.
Sunday, January 3, 2010
Customer Comments on Tracknet Dispute
There is no shortage of opinion on the web regarding the Tracknet/Mid-Atlantic Coop dispute. (For background, you can read HANA Reports here. Jeff has been following it.)
Good customer service? Is this what companies in racing should be doing, especially with handle down? You be the judge:
From our comments section:
"It is Sunday January 3rd ... Due the the tracknet dispute I can not watch Santa Anita, Fair Grounds, or Gulfstream unless I drive over 200 miles to a track that just canceled their live card due to weather conditions. I am just one person but that is $100 of handle that won't be played today."
From Mike at Paceadvantage.com:
"The player either goes offshore, enjoys his/her rebate and uninterrupted wagering signals and probably does not return to onshore pools. Or the player says screw this, I'm tired of the bs and decides to spend his/her dollar on something other than racing. Neither option is good for the game and the industry has no one to blame but themselves!"
A HANA Member, again via Pace:
"It makes sense only to Tracknet, who (mistakenly) believe that handles will be restored once the signals become available to the mid-Atlantic tracks. Tracknet is banking on player's short memories and their general unwillingness to venture out of their comfort zone (and play new tracks). Tracknet does not seem to understand that rather helping them to achieve the objectives of increased handle and revenue, their behavior (greed and lack of appreciation for the customer) is actually serving as a catalyst to do the opposite, which is to enable players to try and enjoy other tracks not represented by Tracknet. Perhaps Tracknet does not understand that In business, it is easier to retain existing customers rather than attract brand new customers or win back those who left disgruntled."
Rich Bauer, Trackthieves.com.
"This is the issue that has been whirling around for years with tracks withholding their signals, etc. I mean, when they do this they're saying, "We don't want you to have our product, unless you pay through the nose, get on your knees and beg and kiss our ass in the process."
This is NOT OK in my book and I gladly do without their product."
A Horseplayer via Pace:
"I am so angry over this nonsense. I been playing horses for 37 years and am ready to walk away from playing horses because of this impasse mess."
Frequent commenter, ITP, a player and horse owner:
"Questions for someone/HANA to ask Daruty next time they talk to him.
1. Will Tracknet tracks agree to pay the same rate to Mid-Atlantic tracks for their signals that they want them to pay for Tracknet signals?
After he answers NO......
2. How is that fair?
3. Many of the Tracknet tracks don't take any (SA,GG,etc), or only take a few of the Mid-Atlantic signals so.......Why do you expect tracks to pay more for your signal when money is only going "one-way" which is against the basic fairness of "track to track" simulcasting agreements?"
Jeff Platt, HANA President, about a month and a half ago:
"Fast forwarding about a month from now... unless this thing is resolved... and it may not be...
Gulfstream, Oaklawn Park, Santa Anita... as things stand right now those signals are going to be impacted by this."
Mike412 on the HANA board:
"I've stated before that I'm a 30 year old horseplayer that wagers a considerable amount of money. You'd think racing would want to keep me around. They say they do, but their actions speak otherwise. This impasse is the final straw for me personally. If it doesn't get resolved by the time Gulfstream and Santa Anita begin, I walk away. It's actually not walking away, but more like being pushed out the door. Simple as that."
Good customer service? Is this what companies in racing should be doing, especially with handle down? You be the judge:
From our comments section:
"It is Sunday January 3rd ... Due the the tracknet dispute I can not watch Santa Anita, Fair Grounds, or Gulfstream unless I drive over 200 miles to a track that just canceled their live card due to weather conditions. I am just one person but that is $100 of handle that won't be played today."
From Mike at Paceadvantage.com:
"The player either goes offshore, enjoys his/her rebate and uninterrupted wagering signals and probably does not return to onshore pools. Or the player says screw this, I'm tired of the bs and decides to spend his/her dollar on something other than racing. Neither option is good for the game and the industry has no one to blame but themselves!"
A HANA Member, again via Pace:
"It makes sense only to Tracknet, who (mistakenly) believe that handles will be restored once the signals become available to the mid-Atlantic tracks. Tracknet is banking on player's short memories and their general unwillingness to venture out of their comfort zone (and play new tracks). Tracknet does not seem to understand that rather helping them to achieve the objectives of increased handle and revenue, their behavior (greed and lack of appreciation for the customer) is actually serving as a catalyst to do the opposite, which is to enable players to try and enjoy other tracks not represented by Tracknet. Perhaps Tracknet does not understand that In business, it is easier to retain existing customers rather than attract brand new customers or win back those who left disgruntled."
Rich Bauer, Trackthieves.com.
"This is the issue that has been whirling around for years with tracks withholding their signals, etc. I mean, when they do this they're saying, "We don't want you to have our product, unless you pay through the nose, get on your knees and beg and kiss our ass in the process."
This is NOT OK in my book and I gladly do without their product."
A Horseplayer via Pace:
"I am so angry over this nonsense. I been playing horses for 37 years and am ready to walk away from playing horses because of this impasse mess."
Frequent commenter, ITP, a player and horse owner:
"Questions for someone/HANA to ask Daruty next time they talk to him.
1. Will Tracknet tracks agree to pay the same rate to Mid-Atlantic tracks for their signals that they want them to pay for Tracknet signals?
After he answers NO......
2. How is that fair?
3. Many of the Tracknet tracks don't take any (SA,GG,etc), or only take a few of the Mid-Atlantic signals so.......Why do you expect tracks to pay more for your signal when money is only going "one-way" which is against the basic fairness of "track to track" simulcasting agreements?"
Jeff Platt, HANA President, about a month and a half ago:
"Fast forwarding about a month from now... unless this thing is resolved... and it may not be...
Gulfstream, Oaklawn Park, Santa Anita... as things stand right now those signals are going to be impacted by this."
Mike412 on the HANA board:
"I've stated before that I'm a 30 year old horseplayer that wagers a considerable amount of money. You'd think racing would want to keep me around. They say they do, but their actions speak otherwise. This impasse is the final straw for me personally. If it doesn't get resolved by the time Gulfstream and Santa Anita begin, I walk away. It's actually not walking away, but more like being pushed out the door. Simple as that."
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