The Importance of Lowering Takeout in Horse Betting

[thaskalos]

Originally Posted by green80

Somebody may have some insight on this, with all the expenses a track has, could they show a profit reducing the take to 10%? 4.5%? Keep in mind that the track puts up a large percentage of the purse money, pays taxes on the money wagered, and has overhead like any business. Maybe someone in the know can tell us at what take % the track breaks even, then we could have a discussion about the take. Sure everybody wants a better deal, a lower take but what is realistic?

It used to be that the high takeouts were deemed "necessary" in years past...because of the high operational costs associated with running this game. But this is the "racino-age"...and many of these tracks are running lucrative casino businesses on the side. Is it "unrealistic" to expect some of those casino profits to go towards meeting the business "overhead"...so that the customer can get some takeout RELIEF? Why is the customer the only one who isn't benefiting in the least from the casino-business windfall that these tracks are collecting?

[TonOfTrot]

Considering the life support that many tracks are on from casino subsidies, reducing takeout and making it worst doesn't seem promising.

Some say that if you reduce takeout, handle will increase much more to more than offset the decrease but I think the jury is still out if thats really true.

[AndyC]

Originally Posted by TonOfTrot

Considering the life support that many tracks are on from casino subsidies, reducing takeout and making it worst doesn't seem promising.

Some say that if you reduce takeout, handle will increase much more to more than offset the decrease but I think the jury is still out if thats really true.

It doesn't matter whether or not it is true. The take-out is part of the product and the wagering consumers are not finding the product attractive.

[cj]

Originally Posted by TonOfTrot

Considering the life support that many tracks are on from casino subsidies, reducing takeout and making it worst doesn't seem promising.

Some say that if you reduce takeout, handle will increase much more to more than offset the decrease but I think the jury is still out if thats really true.

Life support? Yes, casinos "saved" some tracks. But is that really a good thing? It probably could have been if subsidies were used to make the betting product better, including lowering takeout. But all they've turned into at most places (I don't include NYRA in this) is cash cows for a few trainers, now super trainers, that dominate the circuits and win most of the money. If anything, the betting product is worse at most places than it was before slots.

[AltonKelsey]

Before the internet age, tracks were limited to whatever the on track warm bodies would bet.

What happened to the economies of scale, now that 95% of the action is off premises?

Let's have fewer tracks, lower the takeout to 10% or less, and stop futzing around.