MY CONVERSATION WITH SCOTT DARUTY

[betovernetcapper]

On Friday September 7th I received a 1 hour phone call from Scott Daruty, TrackNet's CEO. It seems someone sent him a link to my film. This isn't important but he has a very pleasant smooth voice-very engaging, not exactly what I was expecting. I too endeavored to be pleasant and civil and tactful.
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As a result of our conversation, I believe I've come up with a solution to signal wars. I can't say more at the moment, except that I hope to have a major announcement with 36 hours.
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[ponypro]

Very very nice job.

as I stated before

Dont ever underestimate the power of the Internet. Even the arrogant idiots that run CDI understand that part of "technolgy".

They have gotten consistent overwhelming negative publicity thanks in part to the efforts of this board and its members. There is a point of critical mass and I think it was reached at the Jockey Club Meeting. Alot of things are happening that will hopefully put this all to rest. The Shareholders will probably show Evans the door after this all lines out. He can take his millions in stock options and begin his search for "The next great idea"

[alydar]

On Friday September 7th I received a 1 hour phone call from Scott Daruty, TrackNet's CEO. It seems someone sent him a link to my film. This isn't important but he has a very pleasant smooth voice-very engaging, not exactly what I was expecting. I too endeavored to be pleasant and civil and tactful.
.
As a result of our conversation, I believe I've come up with a solution to signal wars. I can't say more at the moment, except that I hope to have a major announcement with 36 hours.
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Sounds good. I am hopeful yet skeptical.

[michiken]

We are not done until all tracks provide their signals to all ADWs so horseplayers have a choice.

My guess is that Scott has alterior motives.. CEO's always do.

[mhrussell]

Way to go!! And kudos in keeping your diplomatic posture all the while.

However keep in mind that old saying: "Trust, but verify"

Whatever his response is will be interesting and will shed more light on what exactly is going on with these people and what they are actually willing to do at this time under the current $$$ circumstances. :ThmbUp:

[NoCal Boy]

good job. I think the legislation in CA that is poised to be voted on this week will be the impetus to resolving this mess.

BTW, Champion of Youbet on Thursday told analysts in NYC that he was hopeful to have all content back by the first of the year under different models, including a change to TVG's model. I have heard from more than one person that this was a very bold and confident statement out of Champion. This was very out of character and was followed up on Friday with the amendment in California that effectively changes the way ADW is handled in California.

There appears to be quite a bit happening so we will see how it plays out.

Daruty is an attorney who is very smooth. Nothing wrong with that, but I believe his/their inexperience contributed to this mess. Higher signal fees is warranted, but execution was very flawed.

[DJofSD]

Excellent work, BONC. I look forward to the details.

I think the legislation in CA that is poised to be voted on this week will be the impetus to resolving this mess.

Yes, for some of us, this mess is even a bigger mess. We've got the situation with ADW companies, the track menu and the like, then, there is the state of CA and the collective attitude that's akin to all politicians -- they're the smartest ones in the room.

I don't expect a damn thing to come from CA especially since they can't seem to do anything else right. While other states seem to be able to do something like energy deregulation and get it right, good ol' CA screwed it up so badly, Grey Davis lost his job because of it. Do you really think they'll be able to "fix" the ADW situation? I'm not holding my breath.

[kenwoodallpromos]

THIS is the part I find most interesting! He contacted you!

[PaceAdvantage]

As a result of our conversation, I believe I've come up with a solution to signal wars. I can't say more at the moment, except that I hope to have a major announcement with 36 hours.
.

Can it really be this simple? Would be a miracle if it were true....I've got my fingers crossed!

[Indulto]

Can it really be this simple? Would be a miracle if it were true....I've got my fingers crossed!DITTO

[BillW]

BOL BONC - The skeptical side of me expects this to be a damage control move.

[betovernetcapper]

BillW-Hey sent out your book and you should be receiving it Tuesday or Wednesday :)

[BillW]

BillW-Hey sent out your book and you should be receiving it Tuesday or Wednesday :)
:ThmbUp:

[stuball]

Hey He's a lawyer if his lips are moving he's lion :lol:

It's that simple.......do you really think they will give anything
that easy................

Stuball

[rrbauer]

good job. I think the legislation in CA that is poised to be voted on this week will be the impetus to resolving this mess.

BTW, Champion of Youbet on Thursday told analysts in NYC that he was hopeful to have all content back by the first of the year under different models, including a change to TVG's model. I have heard from more than one person that this was a very bold and confident statement out of Champion. This was very out of character and was followed up on Friday with the amendment in California that effectively changes the way ADW is handled in California.

There appears to be quite a bit happening so we will see how it plays out.

Daruty is an attorney who is very smooth. Nothing wrong with that, but I believe his/their inexperience contributed to this mess. Higher signal fees is warranted, but execution was very flawed.

Why are higher signal fees warranted? A big reason for the entire mess is that takeout is too high. High takeout allows tracks that should be shuttered to continue operating. High takeout is the reason that rebates exist. High takeout is the reason that we have these ADW "wars" about how much to charge. High takeout is a subsidy to horse owners who should've never gotten into the biz to begin with. What is needed is takeout that is set by the market and horseplayers smart enough to recognize that enough is enough.

[Pace Cap'n]

Who sets the takeout?

[Indulto]

Why are higher signal fees warranted? A big reason for the entire mess is that takeout is too high. High takeout allows tracks that should be shuttered to continue operating. High takeout is the reason that rebates exist. High takeout is the reason that we have these ADW "wars" about how much to charge. High takeout is a subsidy to horse owners who should've never gotten into the biz to begin with. What is needed is takeout that is set by the market and horseplayers smart enough to recognize that enough is enough.rrb,
Please expand on the horse owner subsidy aspect including the effect on breeders, if any.

Thanks

[ceejay]

Who sets the takeout?
Wouldn't that vary by state? I'm pretty sure Oklahoma's t/o for example is set by statute.

[Pace Cap'n]

Wouldn't that vary by state? I'm pretty sure Oklahoma's t/o for example is set by statute.

My point exactly.

[Kelso]

Why are higher signal fees warranted? A big reason for the entire mess is that takeout is too high. High takeout allows tracks that should be shuttered to continue operating. High takeout is the reason that rebates exist. High takeout is the reason that we have these ADW "wars" about how much to charge. High takeout is a subsidy to horse owners who should've never gotten into the biz to begin with. What is needed is takeout that is set by the market and horseplayers smart enough to recognize that enough is enough.


What he said!! :jump:

[njcurveball]

On Friday September 7th I received a 1 hour phone call from Scott Daruty, TrackNet's CEO.


Good to hear that someone has stood up and taken notice of your efforts! :ThmbUp:

[ryesteve]

Can it really be this simple? Would be a miracle if it were true....I've got my fingers crossed!
If it's really this easy, I've got to go make a video ASAP with a bunch of kids saying that daddy needs a date with Jessica Alba...

[BillW]

BillW-Hey sent out your book and you should be receiving it Tuesday or Wednesday :)

Got it today, thanks!

[boomman]

Got it today, thanks!

And Bill reports he received the Boomer "prizes" over the weekend as well!!

:) Boomer

[rrbauer]

rrb,
Please expand on the horse owner subsidy aspect including the effect on breeders, if any.

Thanks

High takeout inflates the purse structure and it funds pony pork such as the appearance fees paid in Calif where, whether your horse is good enough to finish in a purse-earning position, or not, you get paid for showing up. Those appearance fees are a sham application of the 1/2 point increase in exotic wagers takeout in Calif (in '04 I believe) that was specifically legislated to provide "workers comp relief". This was done AFTER the state made changes in the workers comp situation that provided significant relief to horse owners/trainers via the state fund. There may be other venues that pay appearance fees (you can tell by looking at the charts and see if all the runners receive some money, usually a fixed amount paid to runners finishing below 4th/5th).

I can't comment on the breeders' funds because I don't know that much about them.

I would add that the subsidies enjoyed by track owners and horse owners, etc., in states where slots have been deployed should've resulted in lowered takeout to reflect the new formulas for funding purses made available by the slot money. The slot situation has resulted in track owners getting more, horse owners/trainers and jocks getting more and horseplayers getting ZERO. (Please correct me if I'm wrong about the latter, but I don't recall any lowered takeout in ANY jurisdictions that have gotten slot-machine money.)

The saddest thing about high-takeout structures is that horseplayers pay it! It's a cost of doing business for us and we need to support low-cost operations such as Keeneland where ALL takeout is down to 19% or less and thumb our noses at those operations where takeout goes as high as 30%.

Keeneland, I might add, lowered their takeout structure in response to the NTRA Players Panel recommendations and has continued to deliver a quality product with robust field sizes and is the leader in the application of new technology to the game since lowering their takeout.

[trigger]

rrbauer, I don't want to ruin your day but did you notice that the pending Cal legislation includes a 1% optional increase in the takeout for fairs?
Probably to offset the higher cost of sugar in their cotton candy.

[bigmack]

You're hard pressed to find an operation with a takeout exceeding 20% on WPS and none lower than NY, CA @ 14 & 15.5 respectively.

On exactas you find 25-26% with SUF, SUN, TUP, WO, RET, PIM, FP, All Florida & all NY.

Only the state of PA hits 30% on tri's & supers.

California tracks are fair in all wagers with no more than 21%.

[BillW]

And Bill reports he received the Boomer "prizes" over the weekend as well!!

:) Boomer

Yep all delivered! Thanks all. :ThmbUp:

[Indulto]

If it's really this easy, I've got to go make a video ASAP with a bunch of kids saying that daddy needs a date with Jessica Alba...Actually, RS, you've pointed out the brilliance of BONC's strategy...........POTENTIAL FOR FUTURE ESCALATION.

Daruty could never know when the ants would turn into elephants; from the innocuous to the tempestuous.

And it also suggests that the B-H interview with BONC may have stirred a few hornets and hairnets here and there. ;)

[rrbauer]

rrbauer, I don't want to ruin your day but did you notice that the pending Cal legislation includes a 1% optional increase in the takeout for fairs?
Probably to offset the higher cost of sugar in their cotton candy.

Didn't know that. Don't really follow Calif racing much anymore. There was a bill in the Legislature that wanted to give tracks the right to float takeout from 10% to 30% based on CHRB approval. Don't know what happened to that

You're hard pressed to find an operation with a takeout exceeding 20% on WPS and none lower than NY, CA @ 14 & 15.5 respectively.

On exactas you find 25-26% with SUF, SUN, TUP, WO, RET, PIM, FP, All Florida & all NY.

Only the state of PA hits 30% on tri's & supers.

California tracks are fair in all wagers with no more than 21%.

Why is 21% "fair"? I don't have issues with 14% and 15.5%. Why does any jurisdiction require more than 20% except to subsidize inefficient operations - the most of which should go out of business if they can't survive on that.

What ever happened to free enterprise and if you can't compete then hit the street? If racing and breeding horses is so damn important to a state's economy then let the whole population chip in and subsidize it....get out of the horseplayers' pockets.

[bigmack]

Why is 21% "fair"? I don't have issues with 14% and 15.5%. Why does any jurisdiction require more than 20% except to subsidize inefficient operations
CA tracks are 15.43 WPS & 20.68 for all exotics. As you're an advocate for KEE they're 16 WPS & 19 flat. I won't quibble over the 1.7 difference in the exotic takes and maintain that in the climate of most other tracks CA is fair by comparison.

[rrbauer]

CA tracks are 15.43 WPS & 20.68 for all exotics. As you're an advocate for KEE they're 16 WPS & 19 flat. I won't quibble over the 1.7 difference in the exotic takes and maintain that in the climate of most other tracks CA is fair by comparison.

I'm an advocate for all takeout being below 20%, period. That's the line that I think we need to draw in the sand (or the snow depending on your geographical situation). The chart is fairly current and shows that just reaching 20% on exotics for most tracks will require some work.