Simulcasting Revenue (how is it determined?)

[RaceTrackDaddy]

Does anyone on this medium know just how simulcasting works out?

I know that the ADW’s have contracts with the tracks for their signals and the ability to accept wagers on the host track via their company.

Just how are the percentages rated?

Bottom line, what would a service like BetAmerica receive as revenue when I bet $100 on racing from a track like the Meadows?

I was reading an article regarding the Monarch problem and it got me totally confused on who pays whom and who gets what in that process.. any insight would be greatly appreciated.

http://www.paulickreport.com/news/ray-s-paddock/monarch-midatlantic-simulcast-dispute-fees-should-reward-live-racing/

[Stillriledup]

If you bet on a Meadows race, Bet America would get most of the profits and they would pay the Meadows about 5 or 6 percent depending on the pool, they might get more if your 100 is bet into the Tri pool and not the win pool.

Bet America would essentially give the Meadows anywhere from 5 to 7 dollars for the privilege of accepting your 100 dollar bet.

This is what i believe to be true, but i'm not 100 Percent sure of the contract terms, but usually the person taking the bet gets a lions share of the profits.

[RaceTrackDaddy]

Thank you... so basically the ADW makes the retention rate minus about 7 percent that is paid to the host track.

So in effect, those betting the Mea trifecta races, would have 27% minus 7% or about $20 on the $100 bet. Nice gig. No wonder the ADW's have the ability to offer such rebates and bonuses on certain wagers. Now it makes a lot more sense.

Thanks again Stillriledup

[Stillriledup]

Thank you... so basically the ADW makes the retention rate minus about 7 percent that is paid to the host track.

So in effect, those betting the Mea trifecta races, would have 27% minus 7% or about $20 on the $100 bet. Nice gig. No wonder the ADW's have the ability to offer such rebates and bonuses on certain wagers. Now it makes a lot more sense.

Thanks again Stillriledup

Its possible that because Mea takeout on Tri's is so high, they might be able to get more than 7% just on the tris, not sure if they break it down by pool or theres just a flat rate on everything....but a track like meadows...well, its not exactly Saratoga or Gulfstream, so they can't be in the take it or leave it business....the person taking the bet has the upper hand with minor tracks, if you're meadows you just be happy other places are taking you and you pay the "going rate".

[JJShilo]

I depends if you are an OTB [race book] or an ADW and if you give rebates.Usually you negotiate the rate to broadcast their signal,then if using RCN or someone like them it can cost up to 350.00 per track per moth for their recievers. Then some ppl like CDI charge you an extra percentage if you rebate, so basically it comes down to making the best deal you can.

[wilderness]

There's a long and extensive old-thread on this 2-3 years ago (perhaps longer; when Gural first took over the Meadowlands), and when M1 increased the price of their exported signal.

Folks/staff from M1 lurk in this forum, however rarely submit anything.

[JJShilo]

Are you saying I'm from the M1 because the place I used to work is in NH

[wilderness]

Are you saying I'm from the M1 because the place I used to work is in NH

I didn't mention you and have no clue who you are or where your from.

You trying to start some s-h-i-t

[JJShilo]

Sorry misunderstood your comment.

[badcompany]

Thank you... so basically the ADW makes the retention rate minus about 7 percent that is paid to the host track.

So in effect, those betting the Mea trifecta races, would have 27% minus 7% or about $20 on the $100 bet. Nice gig. No wonder the ADW's have the ability to offer such rebates and bonuses on certain wagers. Now it makes a lot more sense.

Thanks again Stillriledup

It's a nice gig for the time being, but the business model depends on physical racetracks which are no longer viable.