Raise in Take out Rates?-Ca. CHRB

[rwwupl]

California's CHRB is having a meeting today at 2:PM at Hollywood Park.

Item #6 on the agenda calls for a discussion to raise take out rates for W.P.S etc.

Anyone who wishes to get their questions on record(If appropriate) can call Hollywood Park swithboard @ 310-419-1549 and ask to have a rep. ask the question. The meeting Starts at 2:00 PM.

Maybe Jeff Platt could put us on record as to our position?


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STATE OF CALIFORNIA ARNOLD SCHWARZENEGGER, GOVERNOR
CALIFORNIA HORSE RACING BOARD
1010 HURLEY WAY, SUITE 300
SACRAMENTO, CA 95825
(916) 263-6000
FAX (916) 263-6042
NOTICE OF MEETING
Notice is hereby given that a meeting of the California Horse Racing Board will be held on
Friday, April 24, 2009, commencing at 2:00 p.m., at the Hollywood Park Casino, 3883 West
Century Blvd., Inglewood, California. The audio portion only of the California Horse Racing
Board regular meeting will be available online through a link at the CHRB website
(www.chrb.ca.gov) under “Webcasts.”
The agenda for the regular meeting will consist of the following matters:
Action Items:
1. Approval of the minutes of the regular meeting of March 19, 2009.
2. Approval of the minutes of the regular meeting of February 26, 2009.
3. Discussion and action by the Board on the request from the California Authority of
Racing Fairs, (CARF) to designate the following allocated race dates as a combined
fair horse racing meeting, pursuant to Business and Professions Code section 19549.1:
San Joaquin County Fair, June 18, 2009 through June 28, 2009; Alameda County Fair, July
1, 2009 through July 19, 2009; Solano County Fair, July 22, 2009 through July 26, 2009;
CARF at Golden Gate Fields, August 12, 2009 through August 23, 2009; CARF at Golden
Gate Fields, September 9, 2009 through October 4, 2009 and the Big Fresno Fair, October
7, 2009 through October 18, 2009.
4. Discussion and action by the Board on the Application for License to Operate a
Minisatellite Wagering Facility of the California Commerce Club Inc., for a period of
up to but not exceeding two years.
5. Discussion and action by the Board regarding the 2009/2010-budget formula to be
developed pursuant to Senate Bill 16 (Ashburn), Chapter 12, Statutes of 2009.
6. Discussion and action by the Board regarding an increase in the take-out on conventional
and exotic wagers on races conducted by thoroughbred racing associations as
permitted by Business and Professions Code section 19601.01 and the modification of
California advance deposit wagering (ADW) distributions on thoroughbred races as
permitted under Business and Professions Code section 19604(f) (5)(E).
7. Discussion and action by the Board regarding the update from the Los Angeles Turf
Club Inc. operating at Santa Anita Park and the significance of the bankruptcy filing
of Magna Entertainment Corporation on its racing operations.

[Jeff P]

The following letter has been presented to every board member who sits on the CHRB:

Attn: Kirk Breek Executive Director CHRB

Re: Agenda Item before the CHRB

Dear Mr. Breed,

My name is Jeff Platt. I am president of an organization called HANA (the Horseplayers Association of North America.) We have only been around since Sept 08 and in that time have grown to over 1000 members - all of them horseplayers - with collective annual handle in excess of $41 million.

Our goal as an organization is to give the customer a voice within the industry and to communicate customer needs and wants to the industry.

Speaking on behalf of more than 1000 HANA members - horseplayers with handle in excess of $41 million annually - I would like to voice STRONG OPPOSITION to the agenda item before the CHRB to continue an increase in takeout.

Economic studies (Cummings and others) have shown that an inverse relationship exists between takeout and handle. Higher takeout causes racing's largest price sensitive customers to bet less. When takeout is raised handle is driven downwards and revenue as a percentage of handle flowing back to state coffers is reduced not increased.

We believe the staff analysis presented to the CHRB in support of this agenda item fails to take this effect into account.

Sincerely,



Jeff Platt, president

HANA (the Horseplayers Association of North America)
http://www.horseplayersassociation.org

Analysis of the Data and Fundamental Economics Behind Recent Trends in the Thoroughbred Racing Industry - by Cummings Associates:
http://www.nationalhbpa.com/resources/Cummings_report7-17-04.PDF


-jp

.

[rwwupl]

Jeff,

Good for you (and us). Thanks for your efforts.

[chrisl]

Thanks Jeff: We will see what turns out.Chris