CHRB's new ADW attitude?

[Indulto]

Just finished watching the CHRB board meeting webcast and it seemed as if the board, and Chairman Shapiro in particular, supported the concept that all ADWs should be getting all CA signals for wagering purposes; with the broadcasting aspect being a separate issue.

Couto, Daruty, Champion, and a Twin Spires rep all expressed opinions on the matter while a TVG rep just asked about scheduling of future discussion. Interestingly, Couto pointed out (I’m not quoting him) that Twin Spires’ application should be considered in the light of CDI’s having sold HOL [to developers] claiming they couldn’t make money in the state, yet now they’re back.

The most hopeful note IMO was Shapiro’s suggesting that, as a condition of being licensed, tracks might have to take all ADWs.

Sure sounded to me like PA-sourced/related protests have reached some previously closed ears.

[NoCal Boy]

I also listened to it and it seems all but a given that Wagering exclusivity in CA will soon be a thing of the past. Shapiro was quite animated in his statements that the CHRB was there to serve in the best interest of the people and the industry and cited a code section allowing the CHRB to do so. Couto and SDhapiro mentioned there is no problem with TV exclusivity, but the providers should be given a fee for it.

This was a great meeting for gauging where this ADW matter is headed. Daruty stated he wants to give content to all. Champion of Youbet supported the twinspires ADW application. Couto said twinspires should receive a lower fee as did other ADW's when they first came into CA. He also threw a shot at Churchill for leaving CA by selling Hollywood Park.

Bottom line is we now have the CHRB on record as stating wagering exclusivity must go and they will seek to do so through the licencing process in CA. This should embolden the Louisiana horsemen as well.

[Indulto]

I hope they really meant ALL ADWs. Of course TwinSpires would have an agreement already in place with a MEC track, GG. Interesting that BM is already in their corner, but not HOL, even the both are owned by BMLC.

At least now I can associate faces with Couto, Daruty, and Champion. I thought Daruty and Champion sounded much different and more animated than they did in their interviews on ATRAB.

I was surprised to see Couto take a shot at Daruty over the latter's prior testimony before the board. Political posturing, perhaps?

[trigger]

If I understand the new CA law (when enacted) , it is still up to the the Track and Horsemen to ok whatever ADW deal they like (not the CHRB).
I doubt ,for instance, if DelMar and its horsemen, will change from its relatively successful exclusive contract with TVG unless Youbet(who supposedly doesn't make diddly on DelMar) takes the position that it won't carry DelMar if the present exclusive TVG deal is renewed.
I don't see this happening because when Youbet tried this at Fairgrounds last year, TVG just nudged its payment to the FG horsemen(headed by Alferosh(SP?)) up a little bit and got their exclusive contract approved without Youbet.
Unless DelMar goes non-exclusive, do you really think that SA/Tracknet will?

[Indulto]

If I understand the new CA law (when enacted) , it is still up to the the Track and Horsemen to ok whatever ADW deal they like (not the CHRB).
I doubt ,for instance, if DelMar and its horsemen, will change from its relatively successful exclusive contract with TVG unless Youbet(who supposedly doesn't make diddly on DelMar) takes the position that it won't carry DelMar if the present exclusive TVG deal is renewed.
I don't see this happening because when Youbet tried this at Fairgrounds last year, TVG just nudged its payment to the FG horsemen(headed by Alferosh(SP?)) up a little bit and got their exclusive contract approved without Youbet.
Unless DelMar goes non-exclusive, do you really think that SA/Tracknet will?Trigger,
If the webcast is archived, go take a look for yourself, And don't turn it off before they cover the ADW topic by itself as opposed to re: licensing GG and HOL.

If not, wait for the transcript to come out. If Shapiro, Amerman, Harris, and Moss can be taken at their word -- and the new ADW bill is signed -- the CHRB would have the authority to force a change in TVG policy in CA. Champion urged them to use that authority; even advocating they approve Twin Spires.

Whether they can or want to get all CA accountholders access to all tracks outside CA is another issue.

[rrbauer]

To give you some idea of how little progress has been made since ADW first came to California in '02, here is the text of a presentation made to the CHRB's pari-mutuel committee in either Feb or Mar of '04 by a young attorney/horseowner named Aron Wellman who did a very nice job of articulating the issues at the time and reminding the CHRB of their (then) failure to do their job. Very little happened other than MOTS (more of the same) under Landsburg and Harris so it's refreshing to see Shapiro stir the pot and get some results. (I was at this committee meeting in a very packed room and the Magna reps needed steel britches by the time this "roast" was over!)

[NoCal Boy]

There was very little Fair Grounds could do with TVG since there was an existing contract. It was not a new contract. Note it expired after the FG meet earlier this year.

As for CA, the CHRB is going to require each ADW to agree to be non-exclusive on the Wagering side only. Del Mar can continue to be exclusive to TVG on the TV side. TVG will then receive a fee from the other ADW's. The model thrown around earlier had ADW's obtaining 5% for a wager and giving 2% of that to TVG or HRTV, whonever had the TV rights. The Oak Tree head was on Roger Stein this weekend and intimated the same type of arrangment would be coming.

The beauty of the new law is it requires horsemen consent to any ADW contract. You are right that Youbet makes squat from Del Mar from CA residents. IMagine the handle that Youbet would go after in CA if it could make some money on a wager in CA. TVG generates something like 65-70% of its habdle in CA. I think Youbet is abount 25% ($125MM or so). Youbet does no advertising in CA as it makes no sense to do so. However, that will change if and when exclusivity goes way and it makes economic sense to markethere. More $$ for Youbet and more money for tracks and horsemen from increased handles. Same analysis goes for XpressBet and whomever else is licensed.

TV exclusivity will remain. Del Mar wants to be on TV. I highly doubt they like the fact the signal is restricted to certain ADW's. TV plus open access to wagering is the ultimate for a track to generate handles.

Kudos to the CHRB. Anyone watching the proceedings will see Shapiro and the others were dead serious on the issue.

[Indulto]

http://news.bloodhorse.com/viewstory.asp?id=41018 (http://news.bloodhorse.com/viewstory.asp?id=41018)

California May Require ADW Providers to Share Betting Content
by Jack Shinar

The chairman of the California Horse Racing Board called for the commission to require account wagering providers to share track betting content as a condition of future licensing.

“I believe it’s time for this board to step up on behalf of the fans and in the best interests of the industry,” Chairman Richard Shapiro told what was left of the audience at the end of a long meeting at Arcadia City Hall Sept. 27.

… “I believe that the board has the right to adopt conditions for accepting account wagering operators’ licenses,” Shapiro said, ticking off three regulations in horse racing law that he said gives the CHRB the power to act.

“We want to give the public every opportunity to wager on California races,” he added. “It’s just time, for god’s sake, that we move this forward. Why is this treated any differently than simulcasting?”

Shapiro made it clear that he was not referring to sharing track broadcasts, limiting his remarks to wagering rights only.

He noted that because the three currently licensed ADW operators – TVG, XpressBet and Youbet – are up for license renewal in 2008, the timing is right.

[NoCal Boy]

The beauty of it is Daruty, Champion and Couto were all openly and enthusiastically supporting the right of the CHRB to require open access on wagering content. The only possible holdout is TVG. The entire CHRB board, the TOC, Youbet, TrackNet et al are lined up on this one. TVG would be overwhelmed if they fight this one. The new ADW law has teeth as well. The fight will be over what the TV guys get from the other ADW's for showing the races on TV. But all ADW's should have a/v and wagering rights on the internet and phone.

[bigmack]

The only possible holdout is TVG.
With the consortium aligned otherwise, they stand little chance.

[NoCal Boy]

The CHRB stepping up is the nail in the coffin. The TOC already was ready to demand wagering exclusivity, but the CHRB as the licensing body came as a complete pleasant surprise. TVG would be wise to cooperate so they get the best deal on fees for broadcasting the races on TV because if they fight they will only alienate those they need to deal with here.

How long before the Louisiana Horsemen and Racing Commission do the same thing? You know Alfortish has to be licking his chops tonight.

[NoCal Boy]

Champion of Youbet even publicly supported twinspires application for an ADW license in CA. Any chance he and Daruty had a few pops together afterwards?

[DJofSD]

Whether they can or want to get all CA accountholders access to all tracks outside CA is another issue.

The crux of the issue as far as I'm concerned. Like it or not, quiet often tracks outside of CA offer better races, i.e. larger fields.

Seems to me they're trying to build not a better mouse trap but a roach motel -- the dollars check into CA but they don't check out.

[NoCal Boy]

The new ADW law in CA has some teeth in it for out of state races. I am confident LA will follow CA's lead. Once the door has been opened, it will be very difficult to rein it back in.

[Indulto]

The crux of the issue as far as I'm concerned. Like it or not, quiet often tracks outside of CA offer better races, i.e. larger fields.

Seems to me they're trying to build not a better mouse trap but a roach motel -- the dollars check into CA but they don't check out.:lol:
The CHRB can force CA tracks to take all ADWs, but they can't control tracks in other states. TVG would still be in a strong position if they can hold onto NY and NJ while getting all CA tracks.

Perhaps once other states see that open access has a postive impact on CA handle, they will follow suit.

[trigger]

The beauty of it is Daruty, Champion and Couto were all openly and enthusiastically supporting the right of the CHRB to require open access on wagering content. The only possible holdout is TVG. The entire CHRB board, the TOC, Youbet, TrackNet et al are lined up on this one. TVG would be overwhelmed if they fight this one. The new ADW law has teeth as well. The fight will be over what the TV guys get from the other ADW's for showing the races on TV. But all ADW's should have a/v and wagering rights on the internet and phone.

TVG is big at a couple of tracks in California and invests lots of time, money, and effort in promoting and presenting these tracks. IMHO, it will be very difficult to convince these TVG tracks they will be better off with a different arrangement. Open access for all ADW's would be the way to go but, in California, I'll believe it when I see it.

[Indulto]

The Blood Horse is proving itself more player-conscious these days; perhaps even more so than the Daily Racing Form. As of this writing, they were the only internet news source I could find that reported on yesterday's CHRB remarks related to ADW.

Keep up the good work, guys.

[rrbauer]

The CHRB can force CA tracks to take all ADWs, but they can't control tracks in other states. TVG would still be in a strong position if they can hold onto NY and NJ while getting all CA tracks.

Perhaps once other states see that open access has a postive impact on CA handle, they will follow suit.

This does little to/for TVG where TV content is concerned. It leaves them in the TV driver's seat because they have superior signal distribution to HRTV; but, SA/GG will remain on HRTV due to ownership. That leaves HOL and DMR (and Los Al). Los Al's owner LOVES TVG so that leaves HOL and DMR. DMR has always got top billing (even over Saratoga) so why would they change? That leaves HOL.

But, the competition across ADW's for business could see some interesting promo's evolve. However, for Calif residents, isn't there some restriction or prohibition on any rebates or rewards from the ADW's?

[NoCal Boy]

It was also disclosed yesterday at the CHRB meetinghthat Hollywood and TVG have agreed to a contract and it is being drafted and reviewed now. I dio believe TVG gets the upperhand due to superior TV distribution, but the key is to obtain open wagering access for all ADW's. I fully expect TVG to hand on to Del Mar, HollyPark, Los Al, Oak Tree and Fairplex for TV distribution. HRTV will get SA and GG. All will have the Fairs, BM and Cal Expo. The key is all ADW's will have all the content to accept wagers on.

[InsideThePylons-MW]

The Blood Horse is proving itself more player-conscious these days; perhaps even more so than the Daily Racing Form. As of this writing, they were the only internet news source I could find that reported on yesterday's CHRB remarks related to ADW.

Keep up the good work, guys.

Bloodhorse A+

TB Times and Frank Angst.......F-

[Indulto]

Bloodhorse A+

TB Times and Frank Angst.......F-ITP,
Care to share the writer's exam results?

[rrbauer]

CHRB News Release 10-1-2007

pdf file attached

[DJofSD]

Thanks Rich.

No reflection of your efforts but there's still too much positioning and posturing going on -- a press release to tell us they're planning to talk about possibly making a change but they have to involve all the stakeholders, etc., etc. It's still all political posturing as far as I'm concerned.

This is California where energy deregulation is still a pipe dream while other states have been able to implement a change much to the benefit of their citizens. I don't expect anything different when it comes to the ADW. It might take a computer to really foul things up but to twist it way beyond any hope or recognition, let a CA elected official monkey around with it!

[kenwoodallpromos]

Sounds nice; but even with Twinpires betting service, using the sane ADW for all 3 legs of the Triple Crown is not possible in Ca!

[trigger]

Board to push account rivals to cooperate
http://www.drf.com/news/article/89042.html

[trigger]

"CHRB pays Jamgotchian $17,900 over public records suit:
http://www.thoroughbredtimes.com/national-news/2007/October/09/CHRB-pays-Jamgotchian-17900-over-public-records-suit.aspx

Second time to the same guy ! What's up with that, CHRB?

[kenwoodallpromos]

"CHRB pays Jamgotchian $17,900 over public records suit:
http://www.thoroughbredtimes.com/national-news/2007/October/09/CHRB-pays-Jamgotchian-17900-over-public-records-suit.aspx

Second time to the same guy ! What's up with that, CHRB?
Secrecy in racing? When did that start?

[DJofSD]

Secrecy in racing? When did that start?

Sorry, can't tell you.

[Indulto]

"CHRB pays Jamgotchian $17,900 over public records suit:
http://www.thoroughbredtimes.com/national-news/2007/October/09/CHRB-pays-Jamgotchian-17900-over-public-records-suit.aspx

Second time to the same guy ! What's up with that, CHRB?Trig,
Google "Jamgotchian CHRB." There's quite a story there. Start with the "MajorWagers" site references. This is one guy they're sorry they messed with, but can't seem to stop trying. ;)