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Wednesday, October 5, 2011

Panelists Present Numbers (& No Bull) on Takeout

Several of the sports' movers and shakers in the bet taking and track ownership space got together on a panel yesterday at the Simo Conference in Arizona.

On takeout:

"We all want to increase wagering," he said. "Lowering takeout in every instance increases handle. Raising takeout always decreases handle."

On whales:

"When you talk to bigger players, they would rather have lower takeouts and lower rebates," Bowker said. "That way, they also feel less sophisticated money would come back into the pools."

On host fees (which tracks have been raising the past 12-24 months):

"Bowker used as an example two racetracks he declined to name but are located within 100 miles of each other and share a common pool of trainers, jockeys, owners, and horses. Both tracks had very similar blended takeout rates -- about 21.1% -- but Premier, through deals with the host tracks, was able to discount effective rates to 17.2% at one track and to 10.33% at the other.

The track with the lower rate attracted almost five times as much handle."

For small harness tracks:

In 2011, Blanchard added a second Pick 4 wager to his menu and lowered takeout on both from 23% to 15%, a move he said generated positive publicity and greater revenue. "We saw the average pool size double," Blanchard said. "By the end of the meet, it had tripled."

For other points and statistics from the panel, please read the Bloodhorse article here.

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