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the industry shouldn't really have to play it up -- the people that hit are the ones who tell all their friends. Then their friends go to the track and get efficiently cleaned out and decide the casino is maybe more fun in the first place.
One thing that's not talked about much, but I think to compete for the casino dwellers more effectively -- a big part of what racing does not offer very well is the gratification of many small wins. Most casino games, except for roulette (depending on what you;re doing I guess) give the players lots of small wins. They give you a little, then take a little more, then give a little back, etc. This works, lotteries have discovered that paying out small amounts on all the small stuff makes people play more. Gives 'em some hope, and some small wins to enjoy while they get fleeced.
A day at the track in comparison can often feel like you just got straight up mugged. Spending even just a few hours without cashing anything is relatively unfun, if the gratification of cashing is what someone is looking for.
Not that I have any ideas how to change that, but I do think that is part of why many people looking for entertainment and maybe a lucky score choose casino gambling over horseracing. It's not just the payouts, its the frequency of them.
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