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[lamboguy]

Originally Posted by startngate

Since I was responding to the poster of the question about what happens to rebates in the face of a source market fee, I was talking about the distribution of the takeout (where the rebate comes from), not the distribution of the entire betting pool.

In that context, all the participants include the customer receiving the rebate, the outlet, the host track, the source market fee recipient (if any), and any taxing authority involved. The cake example from Wikipedia is a perfect explaination of the point I am trying to make. As the other participants take bigger pieces of the cake (takeout) the rebated player will be left with a smaller piece.

Lowering takeout would also lower the rebate amount, however the effective takeout rate (takeout-rebate) for the rebated player will end up being the same if the other participants in the takeout keep their shares the same. But of course lowering takeout will likely result in greater profits for the rebated player, and has the added benefit of helping the non-rebated player as well.

Call it what you will, but that doesn't change the math, or the theory.
Exactly. And when TrackNet decides to hit those outlets with the increase (assuming they can), the rebates will go down at those outlets too. Assuming the takeout rates stay the same, any increase in host fees (or any other expenses) will negatively impact the rebated player. That's one of the reasons I was also so vocal against the THG's efforts, and why the industry's current attempts to grab a bigger piece of a smaller pie will ultimately hurt the industry instead of helping it.

i am glad someone else understands me here. if they increase the rates at RGS or ELITE those players will not play tracknet either. if they don't play then the lower or no rebate player won't play either. what most peple look at before placing a bet is the amount of the total handle. they want to know if they risk their money that they can win something in return. the rebate or track take is secondary to those people. the industry makes more money on the people that get low rebates but need both to exist these days,