|
In some ways, the problems of racing reflect similar issues with the American economy. The insiders have an edge, be it on Wall Street or the back side. Some are happy just taking a cut (brokers and agents), some cheat, and some hit the occasional home run. Many lose in the long haul, but much more in racing where the takeout grind is relentless.
All this runs more smoothly when there is growth in the economy, lots of discretionary income, and a model that allows for many to share in the spoils. In racing, that meant a larger percentage of casual bettors could make a profit or lose small enough amounts to consider it excellent entertainment value.
Not any longer.
Racing started getting squeezed around 1990, and as simulcasting took off followed by ADW plays, the grind was on. Shopping for rebates, and the interstate insanity of wagering laws meant there had to be plenty of buffer left to ensure staying in the black, and it was the little guys (from the horseplaying side) that got the brunt of it. The cheaters cheated more, and racing execs decided looking the other way to kiss the hand of the whales ensured their numbers stayed up in the short term.
Racing was not well positioned for contraction, and that's what's continuing and accelerating, as the economy is now heading down and discretionary income shrinks, and staying alive becomes more difficult. Unless racing can adopt a model where takeout is on par with slot machines, the "dumb" money will not come back. Unless racing can adopt a model to attract younger players ("in-race" live wagering?), the game is headed for the same fate as the dogs.
|
