Churchill Downs Lost Handle Story Hits the Mainstream Press

The #boycottCDI group - that would be horseplayers like you - were recognized by the mainstream press.

Frank Angst, writing at Bloodhorse.com, interviewed Jeff Platt and the KHBPA's Marty Maline about CDI's handle numbers this meet. As you blog followers know, Churchill Downs handle is off over 25% on non-Derby days this meet, and $19 million, including the Derby. Arlington Park has had a poor start as well.

This despite tracks like Belmont - who have been getting hurt badly (worse than Churchill) in field size holding their own. Several other tracks, like Woodbine, Pimlico, Santa Anita are up handle in the month of May.

Give the story a read and comment there if you wish. There are currently 37 comments from horseplayers just like you.

Now Churchill Downs Wants to Increase Takeout at the Fair Grounds

From the New Orleans Advocate:

"Down the road, Bryant said CDI would be interested in discussing cutting racing days and increasing the track’s takeout on bets, something that takes the legislature’s approval, and having 24 hours of slots operations instead of closing at midnight."

This is why 90.2% of you said you needed to boycott Chuchill Downs properties, ADW's and providers. You knew they would be coming after you at more than just one track.

Playersboycott.org Churchill Handle Update

Playersboycott.org reports Churchill handle down sharply through May 11, 2014 on regular race days.

Key Executives at CHDN have made a calculated decision to hit horseplayers with a takeout increase. WIN-PLACE-SHOW takeout at Churchill Downs was recently raised to 17.50%, an increase of 9.375% vs. last year's takeout of 16.00%. Takeout for all EXOTIC wagers at Churchill Downs was recently raised to 22.00%, an increase of 15.79% vs. last year's takeout rate of 19.00%. 

Churchill's numbers through the first 10 days of their meet: 

 

Wait a minute. You mean I'm boycotting and handle is only down 4.7%? 

Not so fast... 

For those of you who may not know, Kentucky Derby Day Saturday is the single highest handle day in all of North American racing. Likewise, Kentucky Oaks Day Friday is also one of the highest handle days in all of North American racing. 

What happens if we break the Kentucky Oaks Day Friday and Kentucky Derby Day Saturday cards out as special event days - and remove both of them from the above table? 

This is what the numbers look like for the remaining regular race days: 

 

The above numbers - for the eight regular race cards so far this meet - are telling: 

• Avg Field Size is down 0.71 starters per race. -9.13% 

And while you'd expect that to have a negative impact on handle - but not to the extent handle has fallen for seven of the eight regular race days so far this meet: 

• Total handle? DOWN -$12,097,198   (-23.08%) 

• Avg Handle per Race? DOWN -$127,531  (-20.19%) 

• Avg Handle per Day? DOWN -$1,512,550. (-23.08%) 

Do the above numbers suggest everyday horseplayers are staying away? 

Well, something is causing this. Is it possible that everyday horseplayers are saying "no" to higher takeout? 

Churchill's meet is 37 days long. There are 10 days in the books and 27 days left to go. You the everyday horseplayer still have a very big say in all of this. 

Stay the course for the next 27 days and the racing world will hear your message loud and clear. 

• Playersboycott.org is asking horseplayers to consider the idea that horseplayers are consumers and that every handle dollar bet not just at Churchill Downs, but at CHDN owned tracks Arlington Park, Calder, and Fairgrounds, along with every handle dollar bet through CHDN owned ADW Twinspires.com, and every dollar spent downloading data and reports from CHDN owned data provider Brisnet.com is a vote for higher takeout everywhere. 

• Playersboycott.org also wants horseplayers to know there are plenty of tracks running this summer whose wagering menus offer better value than Churchill and that players have other options when it comes to choice of ADWs and data providers. 

* About the above numbers: The above numbers were compiled by horseplayers who spent volunteer man-hours combing through the charts hand keying pool amounts into a spreadsheet. If you notice an obvious mistake please let us know by email at: info @ hanaweb . org (remove the blank spaces first)

Tracks you may want to check out this weekend: 

• Woodbine: 14.95% WIN takeout 

• Belmont: 16.0% takeout WPS    18.50% takeout Exactas and Doubles    15.0% takeout 50 cent Pick5 races 1-5    (arguably the most insightful pre-race TV analysis of any track out there.) 

• Santa Anita: 15.43% takeout WPS    18.0% takeout rolling Doubles    14.0% takeout 50 cent Pick5 races 1-5. 

• Gulfstream: 15.0% takeout 50 cent Pick5 

• Hastings Park: 15.0% takeout WPS, Double, Pick3, Pick4, and Pick5 

• Northlands Park: 14.50% takeout WPS    10.0% takeout Pick5    (the LOWEST WPS and Pick5 takeout of any track in North America) 

• Prairie Meadows: 15.0% takeout 50 cent Pick4 

• Monmouth: 19.0% takeout Exacta and Double    15.0% takeout 50 cent Pick4 and Pick5

• NEW! Printable Takeout Guide for your Wallet! click here 

• NEW! Printable Takeout Guide for your Desk! click here 

These two printable PDF charts point out, at a glance, Player friendly wagers available at North American thoroughbred tracks. "Player friendly" is defined as less than 17% for WPS and less than 20% for all other wagers. Focusing wagering handle on these pools is a way to send the message to all tracks that lower takeout rate wagers will be supported and that lowering takeout rates on all wagers is the most efficient path to future wagering handle growth. Please also note that while several wager types for Arlington and Calder appear on the list at this time we recommend avoiding them during the boycott of their parent company, Churchill Downs Incorporated.

 

For more information, please visit playersboycott.org.

Hong Kong Executive: "The Customer is King For Racing To Keep Relevance"

There is some news filtering out of the Asian Gaming Summit.

Comments from the HKJC chairman:

 Sports betting will overtake global racing turnover this year and that only a "customercentric" approach can maintain racing's relevance, Hong Kong Jockey Club chief executive Winfried Engelbrecht-Bresges has warned.

Relating to an issue North America has to come to grips with, with all-too-short fields:

 "It seems a worldwide trend that in jurisdictions which are breeder-driven, and not as focused on the wants of the customer, that field sizes are a significant issue," he said. "For racing, pari-mutuel is the more attractive proposition but you have to ensure field size, which creates value for wagering potential

As most know, Hong Kong has been very customer-centric, but was not always as much so.

HKJC CEO reminds...HKJC saw wagering decline of 26% from 2001-06. Launched rebate scheme then, up 11% 06-09, 13% in 10 then 41% last 4 yrs

— Pat Cummings (@DubaiRaceNight) May 6, 2014

In 2006, amid falling handles, a program giving cash back on lost bets to encourage demand had begun.

Interesting point out of first session was that HKJC arrested overall decline in business turnover through introduction of betting rebate

— Brent Zerafa (@brentzerafa) May 6, 2014

It's very different over here. Just last month, Churchill Downs Inc. increased takeout, not lowered it amid falling demand, and field sizes throughout the US do not seem to be a concern from a customer demand perspective.

Follow the Leader

In our last survey this question was asked and here were your responses:

92% of you think this is just the beginning. It's why, at 9 in 10, you've wished to withhold some or all money at CDI properties.

What's funny is that we often hear from some 'CD's takeout is still lower than track X so why aren't you upset with track X?

Because of the above. It's follow the leader.

This was exemplified this weekend at Churchill Downs.

@turfnsport @ChurchillDowns a teller at CD brought up CA takeout today in convo. Didn't want to discuss CD takeout. Knew better.
— Tom Quinones (@TRCTomQ) May 4, 2014

Yes, a CD employee wanted to compare CD's 22% exotic take to California's 23.68% exotic take. "See, you are getting a good deal. Those guys are higher"

But as you all know well, California's takeout rate was raised to 23.68% from 20.68% in 2011.

They are comparing their raised takeout rate to another track's raised takeout rate.

In 1908, pari mutuel betting had a takeout of 5%. Now it's around 21%. That's exactly how you get there.

 That's why this is important, and that's why 92% of you understand the game of follow the leader.

This past week at Churchill Downs, despite perfect weather, a debuting big board and the usual fantastic Derby card, you bet less. Well over $5M less since the press release on Tuesday. On our email some of you said you were not going to bet the Derby or the Oaks (both were down from a wet 2013, and a shorter field Oaks in 2013). These events might've surprised some, but it didn't surprise us.

Now is the time where the takeout hike is most felt: With you the every day horseplayer. If that $5m reduction so far goes lower, you are speaking. You're telling tracks that they can't follow the leader anymore. You're telling Gulstream that they can't raise their takeout to "just under Churchill" on their pick 5. You're telling NYRA that because they have a super low exacta take, they can't raise it to "just under Churchill's". It's something you all believe needs to be done, and we stand with you.

One of the Best Bets in North America Debuts Today

At 8:30PM ET in race one today at Northlands Park the 10% takeout pick 5 debuts. I don't need to do the math on horizontals to tell anyone that's a fabulous deal, and it makes it much easier to win.

They even have free programs. Go figure.

To visit Northlands Website it's here.

HANA Poll Result: The Tracks You Said Respected You Most (and Least)

This past weekend we commissioned a poll of members about the Churchill Downs takeout hike, and your support or non-support for a withholding of monies from Churchill Downs Inc. properties. The results of that vote and press release is here.

In addition to that question we asked several ones in the survey and one of them asked you to rank racetracks in terms of customer friendliness.

The question:

The results by ranking, all respondents:

Because most HANA members lie in the average volume of betting range between $2,000 per annum and $100,000 per annum, we thought we'd look at the fringes in the survey. Those who bet $100,000 or more a year, versus those who bet under $2,000 or described themselves as "fans" who don't bet anything at the track per year.

This is overall first place votes from all respondents, subset to the two above categories.

There is really not that much difference between the two bet ranges. For some reason, the large players who took the survey (a relatively small subset, just like in real life at the racetrack) begrudged Belmont for undisclosed reasons. In the overall ranking they were much more middle of the road. Both large and small players, as well as overall bettors, ranked Keeneland number one, which is probably not surprising, since it's believed that they cater to the fan and bettor as well as any track in North America ever has.

Also unsurprising due to the headlines the past week and the poll commisisoning, Churchill ranked first in last place votes with over 60%. No other track scored last with more than 5% of the vote.

We'll have more from this survey next week.

Press Release: 9 of 10 Horseplayers Association of North America Members Polled Show Support for a Boycott of Churchill Downs Inc. Tracks & Assorted Properties; Action Commences

(Charlottesville, VA, April 29, 2014): A poll of Horseplayer Association of North America (HANA) members revealed that 90.2% of respondents will be withholding either some or all of their dollars from Churchill Downs Inc. racetracks – Churchill Downs, Arlington, Fair Grounds and Calder Race Course - wagering platform Twinspires.com and past performance provider Brisnet.com. 

This poll result is in response to Churchill Downs Inc. increasing their takeout rates by over 9% on the win, place a show pools and almost 16% on exotic pools at their Louisville, KY racetrack.  The takeout increase was put in place April 26^th and will continue for the rest of the meet.  

The poll also showed that only 8.5% of respondents believe that this is only a one-track phenomenon. 42.8% believe Churchill Downs Inc. will raise prices at their other tracks, and an additional 48.7% believe that other non-Churchill Downs Inc. tracks will follow with rate hikes. 

“The Board of Directors was struck by the anger this past week on social media and our email from rank and file horseplayers, so we commissioned a survey of members.” said HANA President Jeff Platt. “The survey confirmed that current HANA membership had a similar discontent and they’ve urged us to move forward.”

Although HANA will be working on partnerships with various groups, an advertising program, and a social media push to increase support for a boycott of all Churchill Downs Inc. properties, the Association of over 2,500 horseplayers believes the success or failure of the effort will lie with customers. 

“Large gaming corporations like Churchill Downs Inc. are extremely well funded, but we do not underestimate the power of an educated customer. We ask customers to share this action with their friends and fellow horseplayers,” said Platt. 

A list of Advance Deposit Wagering companies and figure/past performance makers is being compiled, so customers who wish to switch from Churchill Downs Inc. properties can complete their due diligence. HANA, as is its custom, will not be endorsing or recommending any of these products or services.  

The Horseplayers Association of North America will keep both members and non-members informed on its blog, twitter feed, Facebook page and via email as warranted.  Customers are also encouraged to visit www.playersboycott.org for more information. 

Further results from the member poll and the above mentioned list will be released next week on the Horseplayers Association blog.

____________________________________________________________

“What support are you willing to show a boycott, as a HANA member”:

I will stop all play and purchases at Churchill Downs Inc. tracks and properties – 39.94%

I will stop some play and purchases at Churchill Downs Inc. tracks and properties – 50.31%

I will continue to play all Churchill Downs Inc. racetracks and properties like I always have – 9.75%

The Horseplayers Association of North America is a grassroots group of horseplayers who are not affiliated with any industry organization. HANA hopes, through proactive change on several key issues (including but not limited to), open signal access, lower effective takeouts, affordable data and customer appreciation, the industry’s handle losses can be reversed. HANA is made up of over 2,500 horseplayer from all across North America, with an approximate handle of $100 millon per annum.

Twitter: hplayersassnna Blog: http://blog.horseplayersassociation.org/

Web: horseplayersassociation.org Further Information: info @ hanaweb.org

A Player Speaks

We found this post on Paceadvantage.com quite eye-opening.

"Greetings everybody,

Even though Twin Spires has some of the worst player rewards in the industry, I have been a loyal customer since they bought out YouBet in late 2010. I always loved their software, programming, hand histories, and lightning fast cashier. However, all of that came to a screeching halt when I read about their cynical scheme to bilk their already overburdened customers.

A couple of days ago I wrote the following letter to Twin Spires through their customer support client. Surprisingly, one of their customer support agents responded with a promise to put me in touch with a manager. Not surprisingly, management has opted to remain silent.

Here is my letter: "Why are you raising your takeout on Churchill Downs? Do you think your customers have been 'getting a free ride' and should be paying more for the privilege to place a wager? The takeouts are excessive and not competitive with any other form of wagering. One of the reasons I played at Churchill was the reasonable takeout (at least in terms of industry average). Now I feel like you do not respect my business."

It continues. The full post is here.  

Press Release: Playersboycott.org Discusses Their Player Action

Playersboycott.org Announces Boycott of Churchill Downs

http://www.playersboycott.org/pressrelease04252014.html

FOR IMMEDIATE RELEASE (April 25, 2014, San Diego, CA)

Playersboycott.org has announced that a horseplayer boycott of Churchill Downs is underway, citing an increase in takeout coupled with a massive jump in compensation for Key Executives at CHDN as reasons for the boycott.

"Key Executives at CHDN decided to hit horseplayers with a takeout increase," Playersboycott.org spokesman Jeff Platt said. "They suggested to the press an extra $8 million could be raised for purses if they multiply last year's handle numbers by this year's higher takeout rates. But it never works out that way. Takeout and handle share an elastic relationship.  Horseplayers are price sensitive. Higher takeout translates to lower handle and lower purses."

Platt cited takeout increases in California as an example. "For the first six months immediately following the takeout increase at Los Alamitos in 2009, their on track handle was down 27 percent. Horseplayers boycotted Santa Anita and Golden Gate in the early months of 2011 as a result of takeout increases there. Handle dropped significantly enough that track management and horsemen invited us to the table to talk about ways to stop the bleeding. As a result of those talks Hollywood Park put in a 14% takeout pick5 and Del Mar began adding $50k in seed money to their pick six pools on non carryover Sundays. Beginning this Saturday, April 26  Santa Anita will be offering rolling doubles at 18%. None of this would have happened if higher takeout was the answer."

"But that's not the worst part," Platt said. "According to Morningstar, compensation for Key Executives at CHDN jumped from $8.20 million in 2012 to $27.92 million in 2013. On the one hand CHDN is suggesting to the press the only way to raise $8 million for purses is to hit horseplayers with a takeout increase. While on the other hand, the same executives who decided on higher takeout saw their total compensation jump by more than double the amount they hope to take from horseplayers. In my opinion that's egregious."

Beginning Saturday, April 26 : Takeout for WPS wagers at Churchill Downs will be 17.50%. (An increase of 9.375% vs. last year's takeout rate of 16.00%.) Takeout for all EXOTIC wagers at Churchill Downs will be 22.00%.

(An increase of 15.79% vs. last year's takeout rate of 19.00%.)

• Playersboycott.org is asking horseplayers to consider the idea that horseplayers are consumers and that every handle dollar bet not just at Churchill Downs, but at CHDN owned tracks Arlington Park, Calder, and Fairgrounds, along with every handle dollar bet through CHDN owned ADW Twinspires.com, and every dollar spent downloading data and reports from CHDN owned data provider Brisnet.com is a vote for higher takeout everywhere.

• Playersboycott.org also wants horseplayers to know there will be plenty of tracks running this summer whose wagering menus offer better value than Churchill and that players have other options when it comes to choice of ADWs and data providers.

-30-

Daily Racing Form: "Spring is in the Air"

Well a positive look at the new CD meet was tried, but I don't think it went over too well.


In a DRF Churchill preview, which was about the track opening, the article did not mention the raise in prices on customers.

....... but the comments section sure reminded Churchill Downs what's on people's minds:

"While DRF reported on the increased takeout rates on April 11, given that DRF is intended for horseplayers there is really no excuse for Mr. McGee not to have even mentioned the increases in this article. That is the "change in the air" of most importance to many DRF readers."

"The new spelling of GREED in American Racing: CDI. Mr. McGee, the BIGGEST change at Churchill this year is the increased takeouts to the maximums allowed by law and you did NOT think that was important enough to mention in this article. "

" I plan on spending zero dollars at churchill. Well, I lie....I'm going to put the biggest show bet on wise dan and have churchill enjoy a negative takeout pool "

"Nice fluff, Marty - meanwhile, Fair Grounds is crumbling away with a turf course that doesn't drain, a video board that doesn't work, broken doors, a prehistoric grandstand and price gouging on big days"

More at link

Beyer Talks Takeout

Andy Beyer:

"Whenever U.S. racetrack executives get together at industry conclaves, they talk endlessly about the need to broaden the sport's popularity and attract new fans. But perhaps their real problem is that their horseplayers don't bet enough. If crowds at American tracks wagered more than $400 per capita, as they do in Japan, instead of $162 per capita, the sport could boom without a single new customer.

...gamblers are reasonably rational about the economic decisions they make, and they know that horse racing is usually a bad gamble. Tracks typically take from 17 to 25 percent of every dollar wagered, and those in Pennsylvania have blazed new trails by grabbing an exorbitant 30 percent from trifecta wagers.

Even for the most astute professionals it is tough to beat such odds.

So it is no wonder that big gamblers in America prefer to call their bookie and bet on a sports event, where there is only a 4.5 percent disadvantage against them. If horse racing is ever going to attract big players, it will have to reduce takeout to more reasonable levels."

That article was written in 1991. 

You are absolutely correct customers; they never learn.

If you'd like to inform yourself about a grassroots boycott of Churchill Downs Inc and there associated racetracks and properties, it's here.

The Temperature Gets Turned Up on Churchill Downs Inc.

In the week or weeks before the Derby there is usually a news story from someone, somewhere, to try and forward their cause. Derby week is the one week that the world pays attention. In past year's we might've seen a New York Times story, or a story on steroid use. This year it appears there is a grassroots movement happening right as we speak.

Horseplayer Andy Asaro in HRI today:

"The boycott isn't only about the egregious takeout increase. This is about an industry that refuses to listen intently to what their customers are saying. It happens time and again.
This is about an industry that's still stuck in the 1980s when it comes to eliminating breakage, or timing races more meaningfully and upgrading coding of the tote system so that the information you see is what you get in real time and not after a race has begun.
Horse Racing 2014 style is still being played on eight-track cassettes, as if there were no such thing as the digital age. Haven’t you had enough?
There will be no official leader of this grassroots action. It will be led by the collective “we,’ all of us. The boycott will consist of fans, bettors and other practitioners of the sport.
It’s up to each individual conscience, and every outlet, to do their utmost to spread the word. If we allow this moment in time pass without a strong response, we deserve the industry we get."

Customers, not Joe Drape, or an activist group are involved this year.  Just customers.

If this was all there was the heat might not be turned up too hot - maybe just a pleasant sweat. However, it's not.

In an HRI column:

"Churchill Downs is a treasure. However, its parent company, Churchill Downs Inc., has done more to undermine the sport than any PETA video could ever do.


And more here.


It's not even Derby week yet where we see these headlines (and you know they're coming from other places), but from almost everyone we read, or listen to, Derby week has arrived early this year.


Industry analyst Dan Needham: "This is the most awkward and uncomfortable run-up to the Kentucky Derby that I have ever experienced."

Yes indeed.