Churchill Downs cable TV venture has lost money

[asH]

Churchill Downs cable TV venture has lost money

Hope is to grow with Net betting

http://www.kentucky.com/304/story/389037.html


............
Before Churchill bought half of HRTV from Magna Entertainment, races from its five tracks were shown on TVG, a subsidiary of the company that owns TV Guide.
Unlike TVG, HRTV does not offer a wagering service. The channel promotes individual services -- XpressBet and TwinSpires -- owned by Magna and Churchill, respectively.

Magna operates seven thoroughbred tracks.

With less visibility, there has been much speculation that Churchill's betting handle would be down, but the results are unclear.


http://www.miamiherald.com/624/story/516027.html

[asH]

A Blast from the past!
Headlines | Posted 9/13/2007, 10:32 amhttp://www.drf.com/global/img/btn_print.gif (http://javascript%3cb%3e%3c/b%3E:PrintThisPage();)
Magna seeks to sell more racetracks

By MATT HEGARTY
Magna Entertainment Corp. will attempt to eliminate more than half a billion dollars worth of debt by the end of next year by selling several of its racetracks, issuing new stock, and exploring partnerships for several real-estate projects and its tracks, the company announced on Thursday.

In a statement, Magna said that Remington Park in Oklahoma City is among the racetrack properties the company will look to sell. Last week, Magna announced that it intended to sell Thistledown near Cleveland and its interest in Portland Meadows and off-track betting parlors in Oregon. Magna, the country's largest racetrack operator, owns a dozen racetracks including Santa Anita Park in Los Angeles, Gulfstream Park near Miami, Laurel and Pimlico in Maryland, and Lone Star Park near Dallas.


Earlier this year, Magna entered into a partnership with Churchill Downs Inc. to form TrackNet, which buys and sell simulcast signals. As part of the agreement, Churchill purchased a 50 percent share in HRTV.


Please provide a link - mod

[asH]

Evans took a page from television talk show host David Letterman in outlining why ADW is so important to CDI. He offered a top-10 list:

10. ADW is the most convenient form of wagering on horse races.
9. ADW offers the lowest cost to wagering providers.
8. ADW is the best means to build a fan base.
7. The online wagering experience can rekindle interest in the on-track experience.
6. ADW is the least expensive means of delivering the product.
5. ADW is the most practical way to enter markets outside the United States.
4. ADW provides the most cost-effective way to market horse racing.
3. The Internet allows racetracks to better understand their customers.
2. The Internet facilitates new customer-geared features.
1. The Internet “nationalizes” the relationship between investment and financial return.

In explaining the cost factor, Evans noted it costs $18 million to $23 million a year to distribute HRTV and TVG, the industry’s two racing networks. (CDI owns HRTV with Magna Entertainment Corp.) Internet delivery is much cheaper, he said.


http://news.bloodhorse.com/article/44905.htm
--------------------------------------------------------

Posted: Tuesday, April 29, 2008 6:38 PM
Horsemen dig in heels on ADW revenue

http://www.thoroughbredtimes.com/na...DW-revenue.aspx (http://www.thoroughbredtimes.com/national-news/2008/April/29/Horsemen-dig-in-heels-on-ADW-revenue.aspx)
“Racetrack companies that own ADW companies are ‘incentivized’ to redirect wagering from on-track to their ADW company by the current pricing model, as they are able to retain more revenue from an account wager and pay less to purse accounts than when the same bet is made at their track,” the letter said.
(Chilldowns &Magna)
----------------------------------------------------------------
http://www.horseraceinsider.com/blo...path-to-profit/ (http://www.horseraceinsider.com/blog.php/Left-at-the-Gate/04022008-nyras-path-to-profit/)
Tuesday, April 01, 2008
NYRA’s Path to Profit
- Increase simulcast rates. NYRA has already made an aggressive move with respect to account wagering sites. Hayward said that, having gotten out of its exclusive deal with TVG (an arrangement he called "stupid"), NYRA has been able to double its pricing to most account wagering companies, from 4% to 8%; and "nobody blinked." "HRTV and Churchill were thrilled, because they had been excluded. We do around $200 million on account wagering; take that times an additional 4% - that's $8 million, four for NYRA and four for the purses."

------------------------------------------------------------------
http://www.wave3.com/Global/story.a...38&nav=menu31_2 (http://www.wave3.com/Global/story.asp?S=8252938&nav=menu31_2)
For every dollar bet at a track like Churchill Downs, after paying winners and taxes about fifteen cents is left to split between the track and the horsemen. But an online site like youbet.com gets half of that fifteen cents. So Churchill Downs got in the game one year ago with twinspires.com to avoid giving up half the profit.

----------------------------------------------------------------
Total handle down at Santa Anita, but ADW figures up sharply
http://www.brisnet.com/cgi-bin/edit...le.cgi?id=11266 (http://www.brisnet.com/cgi-bin/editorial/news/article.cgi?id=11266)