Truly looking for honest opinions.

[AndyC]

Originally Posted by thaskalos

The problem is that, while the volume discounts that businesses give to their biggest customers are an open and above-board part of doing business...the business of rebates is an under-the-table enterprise...which, it seems, must forever remain shrouded in secrecy.

I was an everyday player for 20 years before I even heard that rebates existed.

I am certainly not arguing the merits of how rebates are marketed and distributed.

[Stillriledup]

Originally Posted by thaskalos

Keeping one's losses at a level where they can be covered by the rebates is not as easy as it seems. The vast majority of the players that I talk to think that they would automatically be transformed into winners with the assistance of these rebates...but my money says that they are wrong.

With the field sizes that we have today...rebates are a must for the everyday player...and these rebates become a great "encouragement" for even the BEST players.

What about this theory. Not only would losers still lose if they were given a rebate , but some winners who are winning without the rebate would also become losers. I know you're thinking that is mathematically impossible, but its not impossible if a person who's currently a small winner started betting completely different with a rebate, betting more, spreading more, betting more races, etc.

[Show Me the Wire]

I will add to the drift. Rebates are the result of a flawed economic model (see Delaware Cuts Purses Double Digits thread- Charles Hayward article http://www.paceadvantage.com/forum/s...4&page=2&pp=15 ).

If the whole model is flawed then rebates are an additional flaw produced by the flawed economic model. Operating under flawed economic models is detrimental to the health and growth of an industry. A flawed item needs to be corrected.

[Some_One]

I think one of the reasons HKJC went with the rebate instead of just lowering takeout was to help get money from illegal outlets into the pools. If they just lowered takeout, those illegal places would just payout final toteodds and keep the money themselves, but now they can funnel the money into the pools and get a riskfree 10%

[AndyC]

Originally Posted by Show Me the Wire

I will add to the drift. Rebates are the result of a flawed economic model (see Delaware Cuts Purses Double Digits thread- Charles Hayward article http://www.paceadvantage.com/forum/s...4&page=2&pp=15 ).

If the whole model is flawed then rebates are an additional flaw produced by the flawed economic model. Operating under flawed economic models is detrimental to the health and growth of an industry. A flawed item needs to be corrected.

The flaw is with the host tracks pricing model for the signal. The rebate has been a great economic model for the ADWs.

[Show Me the Wire]

Originally Posted by AndyC

The flaw is with the host tracks pricing model for the signal. The rebate has been a great economic model for the ADWs.

Exactly, the flawed economic model allows ADWs to make more income than the track marketing the product. This allows ADWs to give rebates as they earn more money than the track.

This economic flaw needs to be remedied.