Wednesday, November 20, 2013

Illinois: Another State Adds a Takeout Hike Tax

Yesterday it was reported "Illinois Horsemen and Tracks Reached ADW Accord". In the story the following:
  • the plan that was agreed to "will fully fund the (IRB) and will impose a temporary surcharge on wagers placed through ADW and at the tracks, OTBs, and inter-track wagering facilities."
These "surcharges" are what you, the customer, has to pay in addition to public takeout rates. Horseplayers, as most know, play takeout rates now rivaling what some states charge their scratch and win lottery players.

Pennsylvania, New York, Massachusetts and Virginia all have these type fees (NY's will change January first). Other states have or are stifling online betting, like Texas and Arizona.

For information on why this is being done to customers, it's here.

It's been reported on and through other channels, including our feedback, that customers are not taking this sitting down. They are doing what rational customers do. They have begun to play less horse racing, and/or have looked into poker. Or they have begun to look offshore, where racing gets no money from them. There is currently a four page thread at, for example, about offshore wagering.

It's interesting that these policies have been tried before, in places like Italy. Takeout rates there were reasonable, but fees and more and more were taken out, whereby the customers would simply tap out too quickly, and leave. Takeout rates, as reported here, were over 40% on some bets in 2008.

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