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Thread: ILL. ADW
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Old 09-01-2010, 09:37 AM   #4
rwwupl
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Quote:
Originally Posted by mannyberrios
I think that it is a shame what is going on with the Ill. residents that cant play their favorite tracks at home from their ADWs. What is going on here?

http://www.bloodhorse.com/horse-raci...llinois-racing

This article will shed more light to your question..it appeared under the Pace "ADW' section recently.

Excerpt and high lights orig. from Andymays...

Excerpt:

Quote:
5% cap imposed by the Illinois Racing Board on advance deposit wagering fees charged by out-of-state racetracks to send their signals to customers in Illinois has led to a significant downturn in wagering from those sources.The fee cap, approved by the state legislature, went into effect July 12. Since that time, Illinois ADW customers have seen a significant drop in the number of tracks on which they can wager through XpressBet.com and TwinSpires.com, the two platforms approved by the IRB.

According to the TwinSpires.com website, among the signals that have been cut off from Illinois ADW customers are Calder, Del Mar, and Saratoga, consistently among the most popular tracks on which to wager this time of the year. The signals are not being provided because the tracks are among those that charge higher rates, usually 8%-9% for their signals.
IRB figures through Aug. 3 indicate average daily ADW wagering has plunged 35.7% from $316,532 a day to $203,394 since the fee cap took effect.

Excerpt:

Arnold said the fact California has a cap on ADW fees is insufficient reason to impose one in Illinois or any other state. He noted California was the first to authorize ADW providers, and in doing so the state established the same rate that is charged for simulcast signals. If anything, California should lift or raise its cap rather than other states following its lead, he said.

"California does need to take action," Arnold said. "We should not follow California’s bad policy and impose it here."

Arnold said there is a common misperception among many within the racing industry that higher signal fees benefit mainly the ADW providers. In fact, according to Arnold, the converse is true, and that when caps are imposed, the lower fees result in the ADW providers getting a higher rate, and that the brunt of the decreases are felt by the tracks and horsemen.

"Any time a state imposes an ADW cap, the only winner is the ADW company," Arnold said. Both Arlington and ADW provider TwinSpires.com are owned by Churchill Downs Inc.

Illinois THA president Mike Campbell said the "single issue that is fueling the war of the signal prices" is the 3.5% California fee cap . "It is causing this reaction throughout the industry," Campbell said. "Our problem here in Illinois is that this is the shot across the bow. It could potentially be a lethal blow."
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