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10-24-2009, 11:53 AM
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#1
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Registered Wacko
Join Date: Feb 2004
Location: Belmont-ish
Posts: 2,242
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California Takeout To Rise As Much As 5%
http://latimesblogs.latimes.com/lano...s-and-gov.html
From the Los Angeles Times:
Governor signs bill to help horse-racing industry
October 23, 2009 | 5:39 pm
California’s horse-racing industry is struggling to compete with expanding casinos and other betting alternatives, and Gov. Arnold Schwarzenegger said Friday he has signed a measure allowing horse track groups to take a larger cut from wagers to fix up their facilities and offer bigger purses.
Senate Bill 517 was backed by several race-related organizations, including the Los Angeles County Fair, Santa Anita Park and the Oak Tree Racing Assn.
The bill by Sen. Dean Florez (D-Shafter) allows a thoroughbred association or fair to increase the amount it deducts from horse-race wagering. It also provides the groups more flexibility to spend the money on improvements, including the purchase of tracks and training areas, and allows winnings that are more competitive with those offered in other states.
Legislative analysts estimate that a 5% increase in the amount taken out of wagers would generate $200 million annually for the horse-racing industry.
Florez said the bill "is about self-reliance, reinvesting in California for growth and protecting jobs for the future."
--Patrick McGreevy in Sacramento
Last edited by Zman179; 10-24-2009 at 11:54 AM.
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10-24-2009, 12:10 PM
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#2
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Both-hands Bettor
Join Date: Mar 2002
Location: NASCAR Country
Posts: 4,390
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We'll see how this plays out. Nobody in their right mind would increase takeout by the full 5 points. This gives the tracks enough rope to hang themselves.
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Richard Bauer
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10-24-2009, 12:18 PM
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#3
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@TimeformUSfigs
Join Date: Jan 2002
Location: Moore, OK
Posts: 46,830
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Of course they are assuming wagering would stay the same, which it won't. It is simply mind boggling how stupid this whole industry is.
Notice the state didn't offer to give up any of their share.
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10-24-2009, 12:24 PM
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#4
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Registered User
Join Date: Sep 2007
Location: Boston+Ocala
Posts: 23,772
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Quote:
Originally Posted by cj
Of course they are assuming wagering would stay the same, which it won't. It is simply mind boggling how stupid this whole industry is.
Notice the state didn't offer to give up any of their share.
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you have just said the smartest thing i have ever heard in my life. i have tried to sell my side of the story to these guys for years, they walk around with $3000 briani suits, and i have torn up dungarees, so i thought these guys are smarter than me. as it turns out you hit the nail on the head, they are complete dopeaholics.
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10-24-2009, 12:30 PM
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#5
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Registered User
Join Date: Feb 2009
Posts: 1,085
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The bill allows the racing Associations to set their own rates from 10 to 25% with the approval of the CHRB. Racing Associations used to set their own rates many years ago, until the State took over.
The record indicates we can expect an increase, but as I read the bill the Associatons could set a decrease, depending on how they wish to market their product.
We need more information from the Associations and their intentions. They now have their destiny in their own hands.
A big raise would be a disaster for them.
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10-24-2009, 12:46 PM
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#6
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Turf Economist
Join Date: Aug 2005
Location: Louisiana
Posts: 1,313
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Guess that Sen. Florez has never had an economics lesson. He should read up on elasticity of demand. As price increases, demand will decrease all other factors held constant.
If shrinking fields do not kill major league racing in California, shrinking pari-mutuel pools will.
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@wire2wirewin
Turf Economist since 1974
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10-24-2009, 12:58 PM
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#7
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Registered User
Join Date: Feb 2003
Location: NE Ohio
Posts: 16,487
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What brilliant thinking by the state of California. How does racing get helped when you sabotage your customer base?
If the synthetic mandate wasn't bad enough, there is no reason for any rationale person to wager on racing in California.
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10-24-2009, 01:07 PM
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#8
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Veteran
Join Date: Nov 2005
Posts: 5,138
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From the Derby List website:
http://www.ssimr.com/posts/97080.html
Quote:
… "Gov Arnold signed a bill that would allow California tracks to increase takeout by up to 5%."
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Quote:
On the bright side:
At least now we are going to find out whether HANA is a serious organization or an organization dedicated to praising itself on the Paceadvantage.com website and getting its leaders invited to cocktail parties.
What is called for here is all-out war--regardless of whether HANA has everything in place. Things are never fully in place. …
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10-24-2009, 01:11 PM
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#9
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Registered User
Join Date: Mar 2003
Posts: 1,353
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Instead of helping the horse player at home in the U.S., they hope that the new Betfair deal will let them raid the pockets of the Europeans, who they believe are complete idiots since they will wager on anything, anywhere, over here.
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10-24-2009, 01:15 PM
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#10
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Registered User
Join Date: May 2005
Posts: 1,735
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Quote:
Originally Posted by cj
Of course they are assuming wagering would stay the same, which it won't.
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Of course! And think of how much extra revenue they'd get if the takeout was 100%!
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10-24-2009, 02:22 PM
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#11
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Registered User
Join Date: Nov 2002
Location: PA
Posts: 461
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My current boycott is just for synthetic track racing. I haven't wagered on a main track race at a major California track for over 2 years. If they raise the takeout, I will boycott all races in California.
This is how they compete for the gambling dollar? They raise the takeout? Synthetic racetracks, and now a higher takeout! They've pretty well put the last nail in the coffin. Brilliant move!
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10-24-2009, 04:10 PM
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#12
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Registered User
Join Date: Jan 2004
Location: The Big Apple
Posts: 4,252
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Quote:
Originally Posted by Zman179
http://latimesblogs.latimes.com/lano...s-and-gov.html
From the Los Angeles Times:
Governor signs bill to help horse-racing industry
October 23, 2009 | 5:39 pm
California’s horse-racing industry is struggling to compete with expanding casinos and other betting alternatives, and Gov. Arnold Schwarzenegger said Friday he has signed a measure allowing horse track groups to take a larger cut from wagers to fix up their facilities and offer bigger purses.
Senate Bill 517 was backed by several race-related organizations, including the Los Angeles County Fair, Santa Anita Park and the Oak Tree Racing Assn.
The bill by Sen. Dean Florez (D-Shafter) allows a thoroughbred association or fair to increase the amount it deducts from horse-race wagering. It also provides the groups more flexibility to spend the money on improvements, including the purchase of tracks and training areas, and allows winnings that are more competitive with those offered in other states.
Legislative analysts estimate that a 5% increase in the amount taken out of wagers would generate $200 million annually for the horse-racing industry.
Florez said the bill "is about self-reliance, reinvesting in California for growth and protecting jobs for the future."
--Patrick McGreevy in Sacramento
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I have always wondered what “shooting thy self in the foot” meant and now I know because not only did the California lawmakers shoot themselves in the foot, they blew their d___n heads off.
Say good-bye to California racing if this new additional take-out stays in effect.
__________________
Independent thinking, emotional stability, and a keen understanding of both human and institutional behavior are vital to long-term investment success – My hero, Warren Edward Buffett
"Science is correct; even if you don't believe it" - Neil deGrasse Tyson
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10-24-2009, 04:19 PM
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#13
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Registered User
Join Date: Jul 2009
Posts: 25
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Handle's off $1 billion the last two years...so the solution is to raise takeout rates and alienate even more players. Sometimes this sport is so stupid it doesn't deserve to survive!
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10-24-2009, 09:21 PM
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#14
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Registered User
Join Date: Jul 2007
Posts: 1,988
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10-25-2009, 08:53 AM
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#15
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Laughcriminal
Join Date: Mar 2007
Location: Boston, MA
Posts: 65
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Lmao..well not quite but..
Man...that picture from "Pumping Iron" is the perfect dot on the bottom of the exclamation point that is this thread...my post can't help but detract..sorry..I've already said too much, I've already ruined it!
ERASE MY POST, LOCK THIS THREAD, HAVE IT PRINTED OUT AND BLOWN UP TO BILLBOARD SIZE AND HUNG DIRECTLY OVER THE ENTRANCE TO WHATEVER CALIFORNIA TRACK THEY'RE RUNNING THE BREEDER'S CUP AT ON OPENING DAY OF WHAT USED TO BE THAT SPECIAL "DAY".
__________________
"....it is the Mad Queen's chamber, it is the throneroom of hearts. It looks, it looks... The inside of your brain."
--From "The Insect Clerks of Neiman Marcus", by Joe Green
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