California Drops Takeout........On Lottery

[Horseplayersbet.com]

http://blog.horseplayersassociation.org/2010/04/california-lottery-opts-to-raise-net.html

[InsideThePylons-MW]

I read the article yesterday.

Was shocked that they understood the concept.

The only reason they did understand it was because other states did it and it worked.

[DeanT]

Wow, I read that wrong earlier today. I thought they were dropping takeout for racing!

Then I remembered the CHRB meeting (opens into a PDF here (http://chrb.ca.gov/board_packages/Apr-2010.pdf)), where it looks to me that they are trying their darndest to consider raising takes in the long run for all Cali racing.

[InsideThePylons-MW]

Then I remembered the CHRB meeting (opens into a PDF here (http://chrb.ca.gov/board_packages/Apr-2010.pdf)), where it looks to me that they are trying their darndest to consider raising takes in the long run for all Cali racing.

I have put all of my faith in the fact that Bo will never allow this to happen.

[Fingal]

You have to give to get.

What a concept- as it was said, Vegas gets it. Racing doesn't. :rolleyes:

[Igeteven]

Here in this State, it didn't take a rocket scientist to figure this out, everyone knew this but the State. However, it took economics to get them going.

This State has always been, an hour late and a dollar short.

California is of the State, for the State, by the State. Nothing else counts until people are hurt by them and the people fight back by not using their products.


Please remember, I believe that Scientific Games runs the program out here and they also run the interstate wagering on horses.


Correct me if I am wrong.

[InsideThePylons-MW]

All of the board members at the CHRB meeting just read the article about the lottery giving out more prize money so that sales will go up.

To neutralize the loss of handle caused by increased lottery sales....The Board is unanimous in their thoughts that raising takeout is the best way to combat the loss of racing revenue.

[Igeteven]

All of the board members at the CHRB meeting just read the article about the lottery giving out more prize money so that sales will go up.

To neutralize the loss of handle caused by increased lottery sales....The Board is unanimous in their thoughts that raising takeout is the best way to combat the loss of racing revenue.

:ThmbUp:

[tzipi]

Look what lowering takeout did for Massachusetts lottery. I think they were the first to lower back in the day and they became number one raking in money and other states followed. Vegas was successful with it too. I'm sure California will see a nice boost.

[DeanT]

tzip,

Takeout and horse racing is a simple formula, and always has been.

Keeneland wants to lower takeout on exotics to an industry low.

Industry response: "We will not take your signal. If you want to raise takeout, we will happily take your signal"

Ellis Park lowers pick 4 take

Industry response: "We will not take your signal. If you want to raise takeout, we will happily take your signal"

Los Alamitos needs money: "We will raise takeout"

Betfair seems to make money on racing by offering low takeout.

Industry response: "Let's stop them"

ADW's want to rebate to all players in some form by lowering takeout.

Industry response (by some tracks): "let's limit rebates to $1M players. Small players should not get lower takeout"

>>>>>>>>>>>>>>>>>>>

Now let's look at others.

Lotto industry: "There are more prizes to give out, so people are going to win more often, (http://www.latimes.com/news/local/la-me-lottery15-2010apr15,0,1793601.story)" said lottery director Joan Borucki. "When people win more often, they feel like playing more often, which in turn will increase sales, and as sales go up . . . our contribution to education goes up."

Betfair: "But shouldn’t we want customers to lose money as quickly as possible?

Slot machine operators around the world routinely return a higher percentage to punters than they are required to under regulation. Altruism, or commercial nous?

Racing knows that customers who go racing, and a) feel they had no value for money at the racecourse, and b) don’t win a single bet all day, don’t have much fun. They may not come back. In just the same way, we know that the least valuable customers to Betfair are the ones who lose all their money quickly. They go away and never come back. So, we are happy to take less off our customers per bet.

Business is all about offering your customer the product he wants at the price he wants. If you can do that, he’ll spend his money with you."



Question: Who is winning the customer battle, lotteries and betfair, or racing?

Is it any wonder why?

[tzipi]

Oh Dean I'm not talking about things going on in the horse industry. There's alot of crazy things going on. I was just talking about the California lottery will I'm sure see a boost. That's all. Hey, I wish racing all around would lower takeout but as we all know that's not going to be easy.