Takeout Hike OK'd in California
winparlay
Junior Member
http://www.bloodhorse.com/horse-racing/articles/54840/takeout-hike-okd-to-help-simulcast-sites
Excerpt:
Responding to what track owner Dr. Ed Allred called "a desperate situation" at the state's simulcast wagering locations, the California Horse Racing Board agreed to hike takeout on Quarter Horse wagers at Los Alamitos Racecourse by 2% on Jan. 15.
Allred told the board during its meeting at Santa Anita Park that roughly half of the projected increase in revenue as the result of the increased takeout would go to the struggling simulcast network. The other 1% would belong to horsemen and the racing association. The board approved the rate increase by a 6-1 vote with commissioner Keith Brackpool in opposition.
Excerpt:
The increase was opposed by Jeff Platt, president of the Horseplayers Association of North America. Industry representatives supported the action.
Excerpt:
That was Platt's main objection. He told the board that staff projections of revenue increases were "flawed."
"It assumes handle will remain the same," Platt explained. "It will not. Every study done shows that as you push up takeout, handle goes down."
Platt said his group, HANA, has more than 1,500 members who wager more than $65 million annually, and that a primary issue on which tracks they bet on is the takeout rate. He noted that California has maintained the lowest win, place and show takeout in the country.
Afterward, he said his membership "would not take it (the takeout increase) well." He said that while he understood the reason for the action, the decreasing handle problems tracks are experiencing are their own fault.
"If they were doing a better job of satisfying what customers want, they wouldn't be in this situation," Platt said. "It's just a shame."
Excerpt:
Responding to what track owner Dr. Ed Allred called "a desperate situation" at the state's simulcast wagering locations, the California Horse Racing Board agreed to hike takeout on Quarter Horse wagers at Los Alamitos Racecourse by 2% on Jan. 15.
Allred told the board during its meeting at Santa Anita Park that roughly half of the projected increase in revenue as the result of the increased takeout would go to the struggling simulcast network. The other 1% would belong to horsemen and the racing association. The board approved the rate increase by a 6-1 vote with commissioner Keith Brackpool in opposition.
Excerpt:
The increase was opposed by Jeff Platt, president of the Horseplayers Association of North America. Industry representatives supported the action.
Excerpt:
That was Platt's main objection. He told the board that staff projections of revenue increases were "flawed."
"It assumes handle will remain the same," Platt explained. "It will not. Every study done shows that as you push up takeout, handle goes down."
Platt said his group, HANA, has more than 1,500 members who wager more than $65 million annually, and that a primary issue on which tracks they bet on is the takeout rate. He noted that California has maintained the lowest win, place and show takeout in the country.
Afterward, he said his membership "would not take it (the takeout increase) well." He said that while he understood the reason for the action, the decreasing handle problems tracks are experiencing are their own fault.
"If they were doing a better job of satisfying what customers want, they wouldn't be in this situation," Platt said. "It's just a shame."
Comments
Los Alamitos will get a short term "sugar high" on the take raise but it will lead to long term misery. SA, DMR, and Holly will follow them off the cliff.