Cal Horse Racing Board Meetings podcasts

[VigorsTheGrey]

AUDIO:
http://www.selectstreaming.com/live/chrb/archives.php

TRANSCRIPTS:
http://www.chrb.ca.gov/meeting_transcripts.html

[Suff]

Originally Posted by VigorsTheGrey

AUDIO:
http://www.selectstreaming.com/live/chrb/archives.php

TRANSCRIPTS:
http://www.chrb.ca.gov/meeting_transcripts.html

Quotes from Transcript.

The Stronach Group moved to eliminate simulcast

P 27 L 18

Our fan base is Asian.

Simulcast facilities aren’t growing as we would all like, but it’s a core audience that’s really fundamental
to horse racing. I mean, that’s why we all have jobs, is because of the patrons. It’s an interesting bunch of
people. It’s an eclectic bunch of people

I understand Labor's side. But reality is reality. Satellite Simo's are not needed.

[VigorsTheGrey]

Originally Posted by Fuss

Quotes from Transcript.
P 27 L 18







I understand Labor's side. But reality is reality. Satellite Simo's are not needed.

From what I gather, the Stronach Group seeks to eliminate Satellite wagering sites in Northern California, for starters, and move to Advance Deposit Wagering (ADW) formats which they believe are the future...the board is concerned that this “seismic shift” made too rapidly may disrupt purse monies available for horseman and labor reps are concerned about union jobs being eliminated at the satellite sites.

The question raised is if the Stronach Group had any plans to address the potential gap should patrons not move to ADW en mass...which I think are legit concerns...offsite patrons may not make the transition that smoothly...many may just lose interest altogether...there being, social reasons to get together at the OTB as well as just betting...

Of course the Stronach Group has a large interest in one of the principal ADW’s, I believe...

I’m not for closing down the Offsite Wagering Avenues...I think they should be expanded to include many more micro-venues as well...like Sam’s in Mission Veijo, Ca...

The Group’s leverage appears to be in the idea that they will just shut down Golden Gate completely if they are not given what they want...

[VigorsTheGrey]

Originally Posted by VigorsTheGrey

From what I gather, the Stronach Group seeks to eliminate Satellite wagering sites in Northern California, for starters, and move to Advance Deposit Wagering (ADW) formats which they believe are the future...the board is concerned that this “seismic shift” made too rapidly may disrupt purse monies available for horseman and labor reps are concerned about union jobs being eliminated at the satellite sites.

The question raised is if the Stronach Group had any plans to address the potential gap should patrons not move to ADW en mass...which I think are legit concerns...offsite patrons may not make the transition that smoothly...many may just lose interest altogether...there being, social reasons to get together at the OTB as well as just betting...

Of course the Stronach Group has a large interest in one of the principal ADW’s, I believe...

I’m not for closing down the Offsite Wagering Avenues...I think they should be expanded to include many more micro-venues as well...like Sam’s in Mission Veijo, Ca...

The Group’s leverage appears to be in the idea that they will just shut down Golden Gate completely if they are not given what they want...

http://www.chrb.ca.gov/Board/board_m...t_18-06-21.pdf

Page 31, line 7...
Page 45, line 9 and beyond...
Page 53, line 19.

[AlsoEligible]

From what I gather, the Stronach Group seeks to eliminate Satellite wagering sites in Northern California, for starters, and move to Advance Deposit Wagering (ADW) formats which they believe are the future...the board is concerned that this “seismic shift” made too rapidly may disrupt purse monies available for horseman and labor reps are concerned about union jobs being eliminated at the satellite sites.

Correct on all counts. I believe the pushback on this is legitimate; of the last three northern OTBs to close (2013, 2016, 2017), reports were run a year later to see how much ADW handle had increased in those surrounding zip codes. In other words, once the facility closed, how many people moved to ADW. The answer is virtually zero - a couple percentage points if I recall right. It seems that people just stopped betting, or maybe went to local bookies instead.

TSG believes they would need 65-70% of OTB handle to transition to ADW in order to "break even" on purse funding.

FWIW, ADW handle is growing in California. In the south it's growing about 14% yearly, and 2017 was the first time that ADW actually handled more than the southern OTB network.

But in the north, that growth is less than 2% year over year. Whether that's just an overall lack of interest in racing, or lack of marketing/advertising, or something else I'm not sure. I think the future in California (and racing in general) is ADW. But clearly there's a lot of groundwork still to be done in the north before TSG can just pull the rug out from under the existing OTB network.

Of course the Stronach Group has a large interest in one of the principal ADW’s, I believe...

Correct, TSG owns XpressBet. TVG is the major player in California, and while they've been quiet on this so far, I would expect them to put up some resistance before they watch Stronach open a bunch of "XpressBet Parlors" throughout the state.

[VigorsTheGrey]

Originally Posted by AlsoEligible

Correct on all counts. I believe the pushback on this is legitimate; of the last three northern OTBs to close (2013, 2016, 2017), reports were run a year later to see how much ADW handle had increased in those surrounding zip codes. In other words, once the facility closed, how many people moved to ADW. The answer is virtually zero - a couple percentage points if I recall right. It seems that people just stopped betting, or maybe went to local bookies instead.

TSG believes they would need 65-70% of OTB handle to transition to ADW in order to "break even" on purse funding.

FWIW, ADW handle is growing in California. In the south it's growing about 14% yearly, and 2017 was the first time that ADW actually handled more than the southern OTB network.

But in the north, that growth is less than 2% year over year. Whether that's just an overall lack of interest in racing, or lack of marketing/advertising, or something else I'm not sure. I think the future in California (and racing in general) is ADW. But clearly there's a lot of groundwork still to be done in the north before TSG can just pull the rug out from under the existing OTB network.



Correct, TSG owns XpressBet. TVG is the major player in California, and while they've been quiet on this so far, I would expect them to put up some resistance before they watch Stronach open a bunch of "XpressBet Parlors" throughout the state.

With regard to the “XpressBet Parlors” is this something that is being considered by TSG..? What would these parlors look like...?

I’ve been to “roadhouse grill” mini - OTB betting locations in California and in Oregon...they seem to work pretty well...what’s preventing more restaurants and bars, grills from doing the same and expanding the networks to local levels...?