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View Full Version : California Takeout To Rise As Much As 5%


Zman179
10-24-2009, 11:53 AM
http://latimesblogs.latimes.com/lanow/2009/10/californias-horse-racing-industry-is-struggling-to-compete-with-expanding-casinos-and-other-betting-alternatives-and-gov.html

From the Los Angeles Times:

Governor signs bill to help horse-racing industry
October 23, 2009 | 5:39 pm
California’s horse-racing industry is struggling to compete with expanding casinos and other betting alternatives, and Gov. Arnold Schwarzenegger said Friday he has signed a measure allowing horse track groups to take a larger cut from wagers to fix up their facilities and offer bigger purses.

Senate Bill 517 was backed by several race-related organizations, including the Los Angeles County Fair, Santa Anita Park and the Oak Tree Racing Assn.

The bill by Sen. Dean Florez (D-Shafter) allows a thoroughbred association or fair to increase the amount it deducts from horse-race wagering. It also provides the groups more flexibility to spend the money on improvements, including the purchase of tracks and training areas, and allows winnings that are more competitive with those offered in other states.

Legislative analysts estimate that a 5% increase in the amount taken out of wagers would generate $200 million annually for the horse-racing industry.

Florez said the bill "is about self-reliance, reinvesting in California for growth and protecting jobs for the future."

--Patrick McGreevy in Sacramento

rrbauer
10-24-2009, 12:10 PM
We'll see how this plays out. Nobody in their right mind would increase takeout by the full 5 points. This gives the tracks enough rope to hang themselves.

cj
10-24-2009, 12:18 PM
Of course they are assuming wagering would stay the same, which it won't. It is simply mind boggling how stupid this whole industry is.

Notice the state didn't offer to give up any of their share.

lamboguy
10-24-2009, 12:24 PM
Of course they are assuming wagering would stay the same, which it won't. It is simply mind boggling how stupid this whole industry is.

Notice the state didn't offer to give up any of their share.you have just said the smartest thing i have ever heard in my life. i have tried to sell my side of the story to these guys for years, they walk around with $3000 briani suits, and i have torn up dungarees, so i thought these guys are smarter than me. as it turns out you hit the nail on the head, they are complete dopeaholics.

rwwupl
10-24-2009, 12:30 PM
The bill allows the racing Associations to set their own rates from 10 to 25% with the approval of the CHRB. Racing Associations used to set their own rates many years ago, until the State took over.

The record indicates we can expect an increase, but as I read the bill the Associatons could set a decrease, depending on how they wish to market their product.

We need more information from the Associations and their intentions. They now have their destiny in their own hands.

A big raise would be a disaster for them.

dylbert
10-24-2009, 12:46 PM
Guess that Sen. Florez has never had an economics lesson. He should read up on elasticity of demand. As price increases, demand will decrease all other factors held constant.

If shrinking fields do not kill major league racing in California, shrinking pari-mutuel pools will.

Valuist
10-24-2009, 12:58 PM
What brilliant thinking by the state of California. How does racing get helped when you sabotage your customer base?

If the synthetic mandate wasn't bad enough, there is no reason for any rationale person to wager on racing in California.

Indulto
10-24-2009, 01:07 PM
From the Derby List website:

http://www.ssimr.com/posts/97080.html (http://www.ssimr.com/posts/97080.html)
… "Gov Arnold signed a bill that would allow California tracks to increase takeout by up to 5%."

On the bright side:

At least now we are going to find out whether HANA is a serious organization or an organization dedicated to praising itself on the Paceadvantage.com website and getting its leaders invited to cocktail parties.

What is called for here is all-out war--regardless of whether HANA has everything in place. Things are never fully in place. …

TurfRuler
10-24-2009, 01:11 PM
Instead of helping the horse player at home in the U.S., they hope that the new Betfair deal will let them raid the pockets of the Europeans, who they believe are complete idiots since they will wager on anything, anywhere, over here. :ThmbDown:

banacek
10-24-2009, 01:15 PM
Of course they are assuming wagering would stay the same, which it won't.

Of course! And think of how much extra revenue they'd get if the takeout was 100%!

levinmpa
10-24-2009, 02:22 PM
My current boycott is just for synthetic track racing. I haven't wagered on a main track race at a major California track for over 2 years. If they raise the takeout, I will boycott all races in California.

This is how they compete for the gambling dollar? They raise the takeout? Synthetic racetracks, and now a higher takeout! They've pretty well put the last nail in the coffin. Brilliant move!

Cratos
10-24-2009, 04:10 PM
http://latimesblogs.latimes.com/lanow/2009/10/californias-horse-racing-industry-is-struggling-to-compete-with-expanding-casinos-and-other-betting-alternatives-and-gov.html

From the Los Angeles Times:

Governor signs bill to help horse-racing industry
October 23, 2009 | 5:39 pm
California’s horse-racing industry is struggling to compete with expanding casinos and other betting alternatives, and Gov. Arnold Schwarzenegger said Friday he has signed a measure allowing horse track groups to take a larger cut from wagers to fix up their facilities and offer bigger purses.

Senate Bill 517 was backed by several race-related organizations, including the Los Angeles County Fair, Santa Anita Park and the Oak Tree Racing Assn.

The bill by Sen. Dean Florez (D-Shafter) allows a thoroughbred association or fair to increase the amount it deducts from horse-race wagering. It also provides the groups more flexibility to spend the money on improvements, including the purchase of tracks and training areas, and allows winnings that are more competitive with those offered in other states.

Legislative analysts estimate that a 5% increase in the amount taken out of wagers would generate $200 million annually for the horse-racing industry.

Florez said the bill "is about self-reliance, reinvesting in California for growth and protecting jobs for the future."

--Patrick McGreevy in Sacramento

I have always wondered what “shooting thy self in the foot” meant and now I know because not only did the California lawmakers shoot themselves in the foot, they blew their d___n heads off.

Say good-bye to California racing if this new additional take-out stays in effect.

Gone2Golf
10-24-2009, 04:19 PM
Handle's off $1 billion the last two years...so the solution is to raise takeout rates and alienate even more players. Sometimes this sport is so stupid it doesn't deserve to survive!

Imriledup
10-24-2009, 09:21 PM
http://thefreshscent.com/wp-content/uploads/2009/03/pot-470x373.jpg

Mike A
10-25-2009, 08:53 AM
Man...that picture from "Pumping Iron" is the perfect dot on the bottom of the exclamation point that is this thread...my post can't help but detract..sorry..I've already said too much, I've already ruined it!

ERASE MY POST, LOCK THIS THREAD, HAVE IT PRINTED OUT AND BLOWN UP TO BILLBOARD SIZE AND HUNG DIRECTLY OVER THE ENTRANCE TO WHATEVER CALIFORNIA TRACK THEY'RE RUNNING THE BREEDER'S CUP AT ON OPENING DAY OF WHAT USED TO BE THAT SPECIAL "DAY".

fmolf
10-25-2009, 10:32 AM
Man...that picture from "Pumping Iron" is the perfect dot on the bottom of the exclamation point that is this thread...my post can't help but detract..sorry..I've already said too much, I've already ruined it!

ERASE MY POST, LOCK THIS THREAD, HAVE IT PRINTED OUT AND BLOWN UP TO BILLBOARD SIZE AND HUNG DIRECTLY OVER THE ENTRANCE TO WHATEVER CALIFORNIA TRACK THEY'RE RUNNING THE BREEDER'S CUP AT ON OPENING DAY OF WHAT USED TO BE THAT SPECIAL "DAY".no wonder why the big three automakers are having a slow recovery!They have gone about it all wrong...lowering prices ...offering rebates and discounts to repeat customers...increasing their products features and quality.What idiots!

bks
10-25-2009, 11:51 AM
California used to have among the smallest takeouts of any US tracks for WPS wagers. So sad to see this happening.

When does this go into effect? I didn't see it referred to in the article.

trying2win
10-27-2009, 04:23 AM
The Los Angeles Times article starts out talking about how the horse racing industry is struggling to compete with casinos and other betting alternatives in California. So what do the so-called expert politicians and legislative analysts come up with to solve the problem?...


Can you believe the two paragraphs below taken from the Los Angeles Times article about this raising takeout at California tracks?:


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"Legislative analysts estimate that a 5% increase in the amount taken out of wagers would generate $200 million annually for the horse-racing industry."

"Florez said the bill "is about self-reliance, reinvesting in California for growth and protecting jobs for the future."

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--Knowing about how our local city and provincial governments here in Alberta waste taxpayer dollars on a regular basis, by hiring high- priced, so-called 'expert' consultants, instead of consulting the taxpaying public, for example who offer excellent solutions for free on a variety of problems...just read any letters-to-the-editors column in your local newspaper. I wouldn't be surprised if Governor Ahnuld's 'KALLYFORNYA' government wasted big dollars hiring consultants that know next-to-nothing about the law of supply and demand, and/or the horse racing industry and asked them to recommend some solutions for the California racetrack revenue problems.

--My comments about the legislative analysts and Dean Florez are...how #%&@*!& stupid can these idiots get?...or as Forrest Gump's mother so aptly put it in that movie...."STUPID IS, AS STUPID DOES!" Also in my opinion raising takeouts would do the opposite to what these legislative analysts and Dean Florez predict would happen.

The best solutions are offered by THE CUSTOMERS THAT BET ON CALIFORNIA TRACKS! And I'd bet the sharpest of these customers are PACE ADVANTAGE MEMBERS! I'm guessing their advice to CALIFORNIA TRACKS to compete against other forms of gambling would be in two areas:

1. Go back to using conventional dirt at California racetracks.

2. Want to further compete with other forms of gambling in California?...LOWER TRACK TAKEOUTS!

...Hello! What am I missing here? Wait a second...maybe I'm suggesting too much common sense for California Government officials to understand. Speaking of common sense, have these California Government or California racetrack officials never heard of Earl Nightingale's wise advice..."THE REAL BOSS IS THE CUSTOMER. THEY PAY FOR EVERYTHING YOU OWN. IF YOU DON'T PLEASE HIM OR HER, THEY WILL TAKE THEIR BUSINESS ELSEWHERE!" In my opinion, Earl was right-on-the-money. Raising takeouts would just drive more of them away!


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T2W