CDI - Do they really care about THG, etc?

[rrbauer]

This outfit is poised to make many times more money from it's non-live horse racing side than from live racing. So do they really care (lip-service aside) about how many horses are in the stalls at their tracks? And, aside from their marquee week in Louisville for the Derby do they really give a hoot about the future of live racing?

From the article:
"Earnings before taxes from expanded gambling at Churchill's Fair Grounds track in New Orleans of $4.38 million nearly outpaced the $4.69 million in earnings from racing operations at its four tracks, two of which raced most of the period.

Increases in pretax earnings from expanded gambling in Louisiana and Churchill's TwinSpires.com account-wagering service offset a 39 percent decline in racing earnings during the period."


http://www.courier-journal.com/article/20081106/BUSINESS/811060371/1002/SPORTS

[BillW]

Rich,

Of course, any manager that ignores a profitable part of a business in favor of altruism won't last long. Not only aren't slots the answer to the racing problem, they will accelerate its demise. Remember, it's the same group that made the decision to shut down ADW access as a means to get more money that supports (and begs for) the installation of slots at race tracks. :bang:

[miesque]

I haven't looked at Churchill's financials for some time but I can provide a very powerful example of why they would care more about slots from Penn National Gaming (PNGI) because I have their 2007 Annual Report in my desk since I have been a shareholder for the past few years. In 2007, PNGI had $500 Million in net revenue from little tiny Charles Town, while their Pennsylvania Racing Operation (which was racing only since the Penn slots didnt start until Feb 2008) had net revenue of $48 Million.

[takeout]

Not only aren't slots the answer to the racing problem, they will accelerate its demise.
So true. Slots are taking the game down fast.

[Imriledup]

There's untold millions of dollars in slot revenue and it is all (or almost all) going to fuel purses for horsemen. not one red cent of that slot money is going back to the players. The horsemen are battling tooth and nail for MORE money from ADW's and everyone else. Trainers, with very little experience, are getting licenses out of cracker jack boxes, charging a large day rate AND raking in untold dollars of that slots money on purses won. Average trainers are buying million dollar homes and 100k cars, i'd love to see what the top trainers in the country are driving and living in. They dope up a horse, cash a large gamble, rake in a ton of purse money and if they get caught? They get the punishment of playing golf for 30 or 60 days while running the stable from the cellphone. When they come back, no harm, no foul, they don't lose horses, they come back just as they left it with very little fear that their owners will take horses from them and give them to someone else.

Meanwhile, back at the ranch, the horseplayer is getting whacked with a 50 cent increase in DRF price, increase in cost of living and not a penny of that slot money goes into the players pockets. The horseplayer is driving a 1980 car with exhaust bellowing out of the tailpipe, he sludges up to the track in his 'air conditioned' sneakers, he scrapes a 5 dollar bill out of his pocket and gets 1 or 2 dollars off admission price with his 'vip card' that he gave his social security number and private info to acquire. He pays 2.50 for a lousy cup of coffee and is herded in with others who are in a similar situation on the bottom floor of his local racetrack.

When a miracle happens, that horseplayer has to give 25% of his money to the govt right off the top, unlike the trainer who wins a million dollar purse fueled by slot machine money, he doesn't pay 25% of a big hit like that oh no he's out buying the next condo while the poor sap who caught a 5k tri has to fight like hell to get some of that money back a year and a half later.

Nice game this horse racing.

[Pace Cap'n]

CDI must be drooling when they see the Penn Nat'l numbers...

www.kentucky.com/181/story/582944.html (http://www.kentucky.com/181/story/582944.html)

Churchill Still Pursuing Alternative Gambling

[DeanT]

CDI, I think we can all agree, pumped a whole pile of cash into TS the past while. When you deliver video better, advertise like a banshee and offer some neat stuff like they have been, you attract some players and make more revenue. I am confident (despite this mess that we are in) that these numbers and this business plan will take hold around racing. It has to, because it is a common sense business plan (imo)

Revenue from Churchill's online segment, which includes TwinSpires.com as well as other operations, topped gambling revenue. Online revenue grew 46 percent for the third quarter, from $8.9 million in 2007 to $13.1 million in 2008.

[trigger]

There's untold millions of dollars in slot revenue and it is all (or almost all) going to fuel purses for horsemen. not one red cent of that slot money is going back to the players. The horsemen are battling tooth and nail for MORE money from ADW's and everyone else. Trainers, with very little experience, are getting licenses out of cracker jack boxes, charging a large day rate AND raking in untold dollars of that slots money on purses won. Average trainers are buying million dollar homes and 100k cars, i'd love to see what the top trainers in the country are driving and living in. They dope up a horse, cash a large gamble, rake in a ton of purse money and if they get caught? They get the punishment of playing golf for 30 or 60 days while running the stable from the cellphone. When they come back, no harm, no foul, they don't lose horses, they come back just as they left it with very little fear that their owners will take horses from them and give them to someone else.

Meanwhile, back at the ranch, the horseplayer is getting whacked with a 50 cent increase in DRF price, increase in cost of living and not a penny of that slot money goes into the players pockets. The horseplayer is driving a 1980 car with exhaust bellowing out of the tailpipe, he sludges up to the track in his 'air conditioned' sneakers, he scrapes a 5 dollar bill out of his pocket and gets 1 or 2 dollars off admission price with his 'vip card' that he gave his social security number and private info to acquire. He pays 2.50 for a lousy cup of coffee and is herded in with others who are in a similar situation on the bottom floor of his local racetrack.

When a miracle happens, that horseplayer has to give 25% of his money to the govt right off the top, unlike the trainer who wins a million dollar purse fueled by slot machine money, he doesn't pay 25% of a big hit like that oh no he's out buying the next condo while the poor sap who caught a 5k tri has to fight like hell to get some of that money back a year and a half later.

Nice game this horse racing.

Imriledup, Sounds like it's time for you stop betting the nags and save your money for a newer jalopy and a nice pair of shoes.

[takeout]

There's untold millions of dollars in slot revenue and it is all (or almost all) going to fuel purses for horsemen. not one red cent of that slot money is going back to the players. Exactly. And Charles Town would be a good example. All of those hundreds of millions in slot dough and the player faces the same old takeout and breakage, etc. And does anyone think CT would ultimately care if people couldn’t bet their signal? Hardly anyone bets it now. And the track itself turns away business. They don’t care. Nor will the “bigs,” once they get slots.

It’s a shame; really, because the tracks with slots, which will soon be most all of them, are blowing an unprecedented (and probably their last) opportunity to do anything meaningful with the game that would help it long-term.

[trying2win]

There's untold millions of dollars in slot revenue and it is all (or almost all) going to fuel purses for horsemen. not one red cent of that slot money is going back to the players. The horsemen are battling tooth and nail for MORE money from ADW's and everyone else. Trainers, with very little experience, are getting licenses out of cracker jack boxes, charging a large day rate AND raking in untold dollars of that slots money on purses won. Average trainers are buying million dollar homes and 100k cars, i'd love to see what the top trainers in the country are driving and living in. They dope up a horse, cash a large gamble, rake in a ton of purse money and if they get caught? They get the punishment of playing golf for 30 or 60 days while running the stable from the cellphone. When they come back, no harm, no foul, they don't lose horses, they come back just as they left it with very little fear that their owners will take horses from them and give them to someone else.

Meanwhile, back at the ranch, the horseplayer is getting whacked with a 50 cent increase in DRF price, increase in cost of living and not a penny of that slot money goes into the players pockets. The horseplayer is driving a 1980 car with exhaust bellowing out of the tailpipe, he sludges up to the track in his 'air conditioned' sneakers, he scrapes a 5 dollar bill out of his pocket and gets 1 or 2 dollars off admission price with his 'vip card' that he gave his social security number and private info to acquire. He pays 2.50 for a lousy cup of coffee and is herded in with others who are in a similar situation on the bottom floor of his local racetrack.

When a miracle happens, that horseplayer has to give 25% of his money to the govt right off the top, unlike the trainer who wins a million dollar purse fueled by slot machine money, he doesn't pay 25% of a big hit like that oh no he's out buying the next condo while the poor sap who caught a 5k tri has to fight like hell to get some of that money back a year and a half later.

Nice game this horse racing.

I'M ALL RILED UP:

Great post! :ThmbUp: I agree with a lot of what you say in your post here. The greedy horsemen get enough revenues from the regular takeout and slot revenues, plus their percentage of ADW money. As a horseplayer, I want some of that slot revenue too then. Why should the avarice-minded horsemen get a big share of slot revenue money, and horselayers get none of it?

I'm not a big fan of CDI, but if I remember correctly in their dispute with greedy, militant horsemen, that CDI believes it's in their mandate that they should only have to negotiate with local horsemen, and not with THG. I agree with CDI'S stand on that issue. Racetracks and ADW'S need a certain percentage of ADW revenue to stay in business. In my opinion, greedy horsemen seem to be ruining that formula with their avarice.

I noticed there have been lots of purse cuts at the tracks where militant horsemen are whining and complaining and withholding signals. I wonder if the militant horsemen group executives are taking a cut in salary during these disputes. I doubt it. Seems to me, the only people gaining financially are a bunch of lawyers. I'm sure these lawyers, will gladly take up the cause of CDI or whining horsemen. It means these lawyers can make lots of $$$$ on these horse racing business disputes.


T2W

[Tom]

Another 10% purse cut announced Friday.....GOOD!
Hope is hurts like hell. Hope it drives a few more out of the game for good.
We need a lot leass racing....a hell of a lot less. No one needs CD...

[DeanT]

Purse cut:

http://paulmoranattheraces.blogspot.com/2008/11/economy-dispute-prompts-churchill-purse.html

and Indy on ADW:

http://paulmoranattheraces.blogspot.com/2008/11/weekend-guest-end-adw-impasse.html

[Charlie D]

Lot being written about the issuues facing US raciing, but nothing much being done about them

[DeanT]

Nice signature Charlie :)

Thanks for your help!

[Imriledup]

I'M ALL RILED UP:

Great post! :ThmbUp: I agree with a lot of what you say in your post here. The greedy horsemen get enough revenues from the regular takeout and slot revenues, plus their percentage of ADW money. As a horseplayer, I want some of that slot revenue too then. Why should the avarice-minded horsemen get a big share of slot revenue money, and horselayers get none of it?

I'm not a big fan of CDI, but if I remember correctly in their dispute with greedy, militant horsemen, that CDI believes it's in their mandate that they should only have to negotiate with local horsemen, and not with THG. I agree with CDI'S stand on that issue. Racetracks and ADW'S need a certain percentage of ADW revenue to stay in business. In my opinion, greedy horsemen seem to be ruining that formula with their avarice.

I noticed there have been lots of purse cuts at the tracks where militant horsemen are whining and complaining and withholding signals. I wonder if the militant horsemen group executives are taking a cut in salary during these disputes. I doubt it. Seems to me, the only people gaining financially are a bunch of lawyers. I'm sure these lawyers, will gladly take up the cause of CDI or whining horsemen. It means these lawyers can make lots of $$$$ on these horse racing business disputes.


T2W

Thanks!

How dare these horsemen cry and complain about 'putting on the show" and that's why they need more money. The horseplayers put on the show. As a horseplayer, i've always said that i'm in the entertainment business. I am the person who is putting on the show. I'm paying for the show to go on. Without me, the show ceases to go on and yet, i sit here watching someone else go for the money grab that belongs to me and you (if you bet).

Just stop the insanity. We got Marsha Naify crying to us in the racing form about her plight and she's got a dad who had 4 billion. I don't know what inheritance she got, but i can't imagine she's trying to figure out where her next meal is coming from.

You, the horseplayer, ARE trying to figure out where your next meal is coming from. BILLIONS of dollars in slot money all to trainers owners and jockeys. Zero to you, the guy who makes this game go.

[Charlie D]

The horseplayers put on the show.


Aye and those industry folk know he/she will continue to do so



THG are :lol: