Just curious how Casino's get paid

[betchatoo]

When you play the horses at a Vegas casino the money goes into the mutual pool and you receive full track odds. How does the casino make money on this? I assume they receive a percentage of what they contribute, but does anyone know what this is? Mostly I'd like to know why some places are very welcoming of horse players and others seem to regard them as second class citizens

[BillW]

Originally posted by betchatoo
When you play the horses at a Vegas casino the money goes into the mutual pool and you receive full track odds. How does the casino make money on this? I assume they receive a percentage of what they contribute, but does anyone know what this is? Mostly I'd like to know why some places are very welcoming of horse players and others seem to regard them as second class citizens

I would guess that they are under the same contracts as other simulcast outfits. The ones that treat horseplayers well probably do it as a courtesy as the floor space is probably much more valuable being used for something else which would explain the less than warm reception in other venues.

Horse tracks treat players badly and in most cases don't even have the option of using the space more efficiently. :rolleyes:

Bill

[BetHorses!]

They keep the takeout

you make a $100 win bet at 15% take they send 85 to the pool and hold $15 -- out of the $15 they pay signal fees and keep the rest as profit.

[BillW]

Originally posted by BetHorses!
They keep the takeout

you make a $100 win bet at 15% take they send 85 to the pool and hold $15 -- out of the $15 they pay signal fees and keep the rest as profit.

I doubt that they keep the states cut of the takeout and the host track gets their part of it too. I remember numbers in the 3% TO 6% range, depending on the negotiated contract.

Bill

[BetHorses!]

Originally posted by BillW
I doubt that they keep the states cut of the takeout and the host track gets their part of it too. I remember numbers in the 3% TO 6% range, depending on the negotiated contract.

Bill

Yes Bill they prob operate on 3% - 6% profit when all fees are paid

[superfecta]

Originally posted by betchatoo
When you play the horses at a Vegas casino the money goes into the mutual pool and you receive full track odds. How does the casino make money on this? I assume they receive a percentage of what they contribute, but does anyone know what this is? Mostly I'd like to know why some places are very welcoming of horse players and others seem to regard them as second class citizens As it was esplained to me,the casinos here in Okla are on tribe property,so they are part of a another nation and do not pay anything to the state as far as taxes.So the money coming in is sent to the track minus the take.And the casino pays a fee to recieve the signal(about 5% of the handle they take in,but may be more or les).So when you bet your money at the casino,they keep the take and thats how they make money.They then settle up with the track after the races.Now in Vegas,I believe its basically the same but the cut size is different,and depending on the agreement it may not be that good for the casino,more trouble than its worth if they don't get alot of handle.

[BillW]

Originally posted by superfecta
As it was esplained to me,the casinos here in Okla are on tribe property,so they are part of a another nation and do not pay anything to the state as far as taxes.



Super,

My guess is that if that were the case host tracks would refuse to deal with those casinos. The host would still is obligated to pay the state their take regardless of the source.

Bill

[Fred]

Originally posted by BetHorses!
They keep the takeout

you make a $100 win bet at 15% take they send 85 to the pool and hold $15 -- out of the $15 they pay signal fees and keep the rest as profit.


If the off track siie sends $85 (15%) of the $100 into the pool then the track takes another 15% of the $85?

[superfecta]

Originally posted by BillW
Super,

My guess is that if that were the case host tracks would refuse to deal with those casinos. The host would still is obligated to pay the state their take regardless of the source.

Bill right now the tribes are operating with an old "treaty" called a compact,When this was agreed on years ago the simulcast was not as abundant as it is now.So the state did not get much from the tribes,the track(Remington)paid more to the state but it wasn't that much,they paid mainly on the on track handle.There is a new compact on hold now til a vote for wider tribal games in Nov.(this also gives Remington park bingo type slot machines)Since the old compact is in effect,the tribes keep a good amount of the take that should go to the state.If and when the new compact is passed,the state will get a cut of the casino in exchange for the casinos getting Blackjack and Poker and other Class III games.When the state allowed the tribes to have OTBs and casinos I don't think they really thought it thru ,now they want a slice of the pie.

[Equineer]

I can't think of any states that completely waive taxes on the home track share of revenues from interstate wagering. Are any tax-exempt tribes also licensed racetrack operators?

Second, except for tribal exemptions, states that license racebooks/OTBs for interstate wagering also collect taxes on the OTB's share of revenues.

So, for interstate wagering, at least some taxes are usually collected by two states... although quite a few states have gradually reduced tax rates (to enable takeout reductions at host tracks).

[superfecta]

Originally posted by Equineer
I can't think of any states that completely waive taxes on the home track share of revenues from interstate wagering. Are any tax-exempt tribes also licensed racetrack operators?

Second, except for tribal exemptions, states that license racebooks/OTBs for interstate wagering also collect taxes on the OTB's share of revenues.

So, for interstate wagering, at least some taxes are usually collected by two states... although quite a few states have gradually reduced tax rates (to enable takeout reductions at host tracks). Blue ribbon downs is owned by a tribe now ,purchased in bankrupcy.Will Rogers Downs may have been purchased as well,I don't know.I also don't know how BRD will operate as to what the state will get as far as take.I imagine they will have to operate as any other track since they are not located on "sacred "tribal property.But if the new compact is approved by public vote,they probably will get a bump by being able to install slot type machines like Remington.

[Equineer]

Superfecta,

A racetrack on tribal land might be interesting: cheap smokes in the gift shop, slots in the grandstand buildings, horses on the track, and a swap meet in the infield. :)

[superfecta]

Originally posted by Equineer
Superfecta,

A racetrack on tribal land might be interesting: cheap smokes in the gift shop, slots in the grandstand buildings, horses on the track, and a swap meet in the infield. :) you got that right.seeing how some of these guys keep their cars running(ICs) I can imagine how they will keep their horses running:D
We could also have frybread tosses,maybe Snag free day or a new racing slogan- Getting America Back.....$2 at a time:eek: