OBJECTIVE
Transform racing into an attractive gambling product the general public would be willing to embrace.
Thousands of horseplayers been surveyed multiple times since 2009.
Horseplayers have consistently identified three areas where racing needs improvement:
1. Takeout (Racing Takeout is too high compared to other forms of gambling)
2. Drugs (Racing has a Drug Integrity Problem)
3. Tote System (Odds that Change After the Bell will always be seen by the public as an Integrity Problem)
Players have also identified the following areas where racing needs improvement:
4. ADW (Account Deposit Wagering) has too many restrictions. Want the public to embrace your sport? Start by removing the roadblocks you created.
5. Track Signals blocked/not available to all ADWs or simulcast wagering outlets. Want the public to follow and bet the races at your track? Again, start by removing the roadblocks you created.
6. Mistimed Races ongoing problem discussed at length
here at Paceadvantage.
Focusing on the top three:
1. TAKEOUT
A. Create a level playing field. Eliminate rebates and offer the same lower takeout to everybody.
I had phone a conversation about this with one of the largest whales (if not the largest in terms of betting volume) on the planet. He told me he would happily give up his rebates provided the same lower/equivalent takeout were offered not just to whales like himself but to all players everywhere.
B. Eliminate dime and nickel breakage. Break to the nearest $0.01
C. In many US states and Canadian provinces racing (a 22% takeout game) is being kept alive by welfare subsidies from slots (a 9% takeout game.) Casino slots payout percentage is approximately $0.91 for each $1.00 wagered because that's the price point that generates max total revenue. Think about that and let it sink in.
D. Racing faces stiff competition from Legalized Sports Betting (which offers 4.50% takeout to bettors picking Team A vs. Team B.)
Imo, competition from legalized sports betting is only going to get worse. And it will cannibalize racing handle.
Why not tier horse racing takeout rates to field size?
Example for Win Wagering:
Code:
Field Takeout
Size Rate
---- ------
2 4.50%
3 5.75%
4 7.00%
5 8.25%
6 9.50%
7 10.75%
8 12.00%
9 13.25%
10 14.50%
11 15.75%
12+ 17.00%
2. DRUGS
a. Make the rules for prohibited substances and test thresholds uniform across all racing jurisdictions.
b. Implement Out of Competition Testing.
c. Implement Penalties with Teeth for those caught cheating through the use of drugs. Especially for repeat offenders.
d. Reciprocity (suspended for 60 days or ruled off the grounds in Jurisdiction A means suspended for 60 days or ruled off the grounds everywhere.)
3. TOTE SYSTEM/Odds that Change after the Bell
a. Racing needs a modern secure tote system fast enough to render odds and payoffs in real time (think NYSE/Nasdaq/Crypto, etc.)
Imo, start with the Top Three:
Implement
Lower Takeout for All,
Uniform Drug Policy that includes Reciprocity and penalties with teeth for repeat offenders, and a
Modern Secure Tote System fast enough to render odds and payoffs in real time.
After that work on the others: Make ADW available in every state, make all track signals available to every licensed ADW and simulcast wagering outlet, and make accurate race timing a priority.
-jp
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