Relationship between Handle Growth and Rebating?

[rrbauer]

I see in BH that LAD had modest gains in handle in their meet just concluded, October 18. And they increased their average field size to something over 9 per race.

http://news.bloodhorse.com/article/47614.htm

I've seen other posts around this board advancing the idea that LAD's success had to do with having a real dirt track. (Personally, I doubt that is the reason.) What about the idea that their gains come from their willingness to make their signal generally available; and, the ADW's that offer their signal offer rebates in one form or another? PTC carries LAD. So does Youbet with a double points thing on Thursday and Friday. And, TVG got into the fray this year too. There have to other ADW's carrying them too, because I never hear any bitching about not being able to bet their races.

That said, from my personal experience, with its low-volume "pick" pools (my mainstay) it's a tough venue. But, they're doing something right in order to run against the downward trend in handle.

[Charlie D]

In hard times people are more inclined to search out the "value", so i would say that any rebates offered are playing a big part in the fortunes of places like LaD

[ezrabrooks]

Handle rose 6% on track, so LAD is doing something right, besides just dealing with rebaters.

Ez

[Charlie D]

Looks like the model that works is simple, but effective



Good feild size
Good distribution of signal/betting
Low take out or rebates


Hopefully the other tracks, horseman groups can see this and act accordingly

[NoCal Boy]

La Downs results speak for itself. Open access and working with ADW's and not against. These results will be used by many to justify open access and broad distribution. Results are there.

[Charlie D]

Results like LAD's should be used to bang the Open Access, no discrimination drum very loudly


Why some can't see that Open Access, no discimination benefits everyone involved or interested in this Great game is beyond my simple mind

[DeanT]

Mountaineer is the prime example of this. Their handle when they shut out giving it to everyone in 1999 was 19 million. After using the "I will give my signal to everyone who wants it at a good price" change in 2000, it went up to over $300 million in '03. Not sure what it is this year, but it is a hell of a lot higher than 19 million.

[DeanT]

I think this is important to those who follow THG's plan.

From a May press release, when LAD signed the deal to get their product out to partners like PTC and Youbet:

http://news.bloodhorse.com/article/45315.htm

THG president Bob Reeves said his group did not recommend Louisiana horsemen accept the deal offered by Youbet.

This is what happened to them signing the youbet deal:

Now in the third year of a marketing partnership, Youbet.com posted increases on Louisiana Downs racing once again. The online provider doubled their handle on Louisiana Downs from 2005 to 2007, and grew by another 10% in 2008.

[rrbauer]

I see in the charts at LAD that all purses seem to be supplemented by "other sources". In general, (aside from breeders awards) is that slot/video poker money? Anybody know?

[cj]

I see in the charts at LAD that all purses seem to be supplemented by "other sources". In general, (aside from breeders awards) is that slot/video poker money? Anybody know?

Yes, slots.

[Charlie D]

THG president Bob Reeves said his group did not recommend Louisiana horsemen accept the deal offered by Youbet.

This is what happened to them signing the youbet deal:

Now in the third year of a marketing partnership, Youbet.com posted increases on Louisiana Downs racing once again. The online provider doubled their handle on Louisiana Downs from 2005 to 2007, and grew by another 10% in 2008.



I hope someone keeps whacking Bob " i don't have a sharp mind" Reeves over head with the above

[sandpit]

Perhaps the racing office had some small hand in this; after all, they are the ones that put the product together for the public. It will be interesting to note what happens next year, as the racing secretary has left Louisiana for a similar position at that hell-hole known as Gulfstream Park...

[startngate]

Mountaineer is the prime example of this. Their handle when they shut out giving it to everyone in 1999 was 19 million. After using the "I will give my signal to everyone who wants it at a good price" change in 2000, it went up to over $300 million in '03. Not sure what it is this year, but it is a hell of a lot higher than 19 million.Mountaineer didn't "shut out giving it to everyone in 1999".

Mountaineer didn't send out their signal at all until 2000. It wasn't a situation where they withheld it selectively. They waited a bit after getting slots to let the racing quality improve, and then had to do several upgrades, most prominently a new lighting system for the track.

[DanG]

Perhaps the racing office had some small hand in this; after all, they are the ones that put the product together for the public. It will be interesting to note what happens next year, as the racing secretary has left Louisiana for a similar position at that hell-hole known as Gulfstream Park...
Wow…talk about working your way down the career ladder.

I could cry when I see the current version of Gulfstream as compared to the memories. :ThmbDown:

Sidebar: A major thanks to Dean (and many others) who articulate these industry issues so well on this board. :ThmbUp: So many of us (guilty as charged) are consumed with the daily grind that the overall / internal picture gets lost.

[alydar]

Don't know actual stats, but they seem to have good size fields in most races. I would think that that is a significant factor in their success.

[boomman]

Looks like the model that works is simple, but effective



Good field size
Good distribution of signal/betting
Low take out or rebates


Hopefully the other tracks, horseman groups can see this and act accordingly

Wow what a concept! 3 simple things that Louisiana Downs did, and they "bucked an industry trend"! I supported their meet throughout (especially given the large field sizes and takeout reductions through PTC) and it is obvious others did as well.....................:ThmbUp: :ThmbUp: :ThmbUp:

Boomer

[Charlie D]

For a business to thrive it needs to offer it's product(s) to as many interested parties as possible

Racing industry does not do this


Racing industry needs to have words with people like Mr Joe Riddell, i reckon