Quote:
Originally Posted by glengarry
Here is what I don't understand about the CRW teams, and how they make money. Unlike Wall Street, profiting from insider information is perfectly legal in the racing game. Add to that the huge takeout that dwarfs any table game in Las Vegas, and I am unable to see how value can be found in this game, especially when that value is erased by the reduction in odds as soon as the CRW players do their thing. So they see value at 4 to 1, and then one or more teams bang the horse on the win end, and presumably other horses as well, to the point they are no longer value plays.
My best guess, and I am happy to be corrected, is the profit comes from the enormous rebates they get. Then it becomes a game of churning as much through the machines as they can over the year. The tracks could care less, as their goal is to increase handle. So everyone else has 2 choices: take up another activity, or take the abuse.
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Your last paragraph pretty much sums it up. They are trying to equalize all the payoffs and then make money on the rebate. They just have to beat the takeout to make money.
Its almost foolproof really.
