Monday, August 23, 2010

East Coast Versus West Coast

In an example just how different, and fractured, the business is, even on something as simple as the price of the product, we offer this. East versus West. NYRA versus California.

NYRA Chairman Steve Duncker, yesterday:

On the topic of pari-mutuel takeout rates, Duncker noted the blended rates in New York were 15% in 1960, 17% in 1970, and 19.81% in 2010. Over that period, racing has faced growing competition from other forms of gambling that employ takeout rates of 2%-10%.

“What business people in this audience think that’s the way to increase business?” Duncker said. “We’re being priced out of this market. We need to bring the cost of our product down in a competitive market.”

Del Mar's Craig Fravel, last week, while discussing the proposed increase in takeout in California.

"In terms of takeout we are significantly lower than most jurisdictions. NYRA’s three-horse wagers are 26%, compared with 20.68% for Del Mar. That 20.68% is on superfectas, pick threes, pick fours and pick sixes. Monmouth’s takeout is 25% on those three-horse bets. We still have plenty of room to be price competitive."

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