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Originally Posted by foregoforever
It doesn't cost you anything. Virginia's 10% is taken is taken out of the ADW's cut. So, assuming a 20% takeout and a 6% signal fee, Virginia horsemen get 10% (through the various organizations), the track gets 6%, and the ADW is left with 4% for all wagers placed by Virginia customers.
I object to the notion that Virginia horsemen, who run no races currently, and only ran a few weeks all along, get the majority of the money for doing essentially nothing. Subsidies like this screw up the economics of the game, and there are side-effects.
The smaller ADWs won't take Virginia customers, and the larger ones aren't at all happy about the tax. That's why Colonial disappeared from TVG and HRTV some years ago. The ADWs weren't interested in promoting Colonial when they get such a small cut.
It's also why Colonial had so little interest in running races in recent years, as they made more money by not racing and just collecting their cut. This was the cause of all the problems last year.
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Ok, thanks.. I didn't initially understand where the 10% was to come from in new legislation.
I thought the breakdown in negotiations between Colonial's owner Jacobs and the Virginia horsemen was over racing dates. He stuck soundly to only wanting to race a 5 day per year meet....with very high quality horses and purses. The Virginia horsemen said that would not work for them.. They wanted many more racing dates... That was the end game from my understanding.
