I dont' have any first hand knowledge about what's being said behind closed doors among Churchill, Keeneland, Kentucky Downs, and the Kentucky Racing Commission.
But I do think the following timeline might be of some help in connecting the dots as to how Keeneland went from
"We're proud to be HANA's #1 rated track" to
"CHURCHILL DOWNS AND KEENELAND ANNOUNCE HISTORIC PARTNERSHIP TO PROPOSE CONSTRUCTION OF TWO NEW RACING FACILITIES IN CORBIN AND OAK GROVE, KENTUCKY"...
* August 2013: Kentucky Downs wants to put itself on the map by giving lower takeout a try. They ask HANA to help them promote a reduction in exacta takeout. They also begin using proceeds from instant racing machines to bump their purses.
* Sept 2013: Kentucky Downs reports record handle. $12.78M for 2013 vs. $7.6M for 2012 UP +5.2M +68.73%
(Despite canceling one of their Wed race cards after 4 races due to weather.)
* April 2014: Keeneland announces they will replace their polytrack surface with natural dirt after the conclusion of their spring 2014 meet - and that they plan to run their fall 2014 meet on natural dirt.
* April 2014: Churchill announces a takeout increase for their 2014 spring meet. On June 29, 2014: Playersboycott.org reports that Churchill handle outside their 2 special event days (Oaks Fri and Derby Sat) was down -47.9M -25.64% vs. the previous year.
* June 2014: The Breeders Cup and Keeneland announce that Keeneland will host the Breeders Cup in Oct 2015.
* Sept 2014: Kentucky Downs reports an uptick in handle: +3.04M +23.8% vs. the previous year.
* Nov 2014: Handle for Churchill's two fall meets are down -$29.9M -18.25% vs. the previous year.
* May 2015: HANA learns the Breeders Cup has been lobbying Keeneland to get behind a takeout hike for the 2 day Breeders Cup meet. Horseplayers who are HANA members ask Keeneland management to consider not allowing the Breeders Cup to hike takeout for the 2 day Breeders Cup meet. Keeneland management sides with horseplayers.
* Sept 2015: Kentucky Downs reports an uptick in handle: +$1.02M +6.46% vs. the previous year.
(Despite canceling one of their Wed race cards after 2 races due to weather.)
* Oct 2015: The Breeders Cup is conducted at Keeneland using Keeneland takeout rates (16% wps and 19% exotics.)
* Sept 2016: Kentucky Downs reports record handle: +5.76M +34.20% vs. the previous year.
* Aug 2017: Keeneland announces a takeout hike (except for the pick5 they will be using the same rates as Churchill.)
* Sept 2017: CHURCHILL DOWNS AND KEENELAND ANNOUNCE HISTORIC PARTNERSHIP TO PROPOSE CONSTRUCTION OF TWO NEW RACING FACILITIES IN CORBIN AND OAK GROVE, KENTUCKY:
https://www.keeneland.com/racing/chu...ic-partnership
Sept 2017: Kentucky Downs reports record handle again: +7.3M +32.51% vs. the previous year.
(Despite being forced to cancel their opening day 2017 Saturday race card due to weather and run it on a Wednesday)
* 10-30-2017: DRF reports Keeneland fall handle down 8.7 percent:
http://www.drf.com/news/keeneland-ha...own-87-percent
Quote:
Originally Posted by GMB@BP
is takeout the real reason why they are trying squeeze Ky Downs?
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Even though Kentucky Downs has reported handle growth for 5 consecutive years 2013-2014-2015-2016-2017 -- going from $7.6M for 5 race dates in 2012 to $29.9M for 5 race dates in 2017 -- more than tripling their handle during that time period -- in part because they lowered their exacta takeout and asked a horseplayers association to help them promote lower exacta takeout to horseplayers -- and also in part because they used instant racing dollars to boost their purses...
And even though Kentucky Downs leveraging reduced exacta takeout to grow handle like they have flies in the face of everything both Churchill and now Keeneland have been saying about the need for higher takeout:
I don't think the lower takeout at Kentucky Downs has anything to do with Churchill and Keeneland trying to squeeze Kentucky Downs.
I think Churchill and Keeneland have noticed that Kentucky Downs has generated a LOT of money from instant racing machines, largely because they are located close to the Tennessee border - and Tennessee does not have legalized gambling.
I suspect Churchill and Keeneland want to build instant racing parlors... Strike that. Parlors is such an inaccurate word... Let's just call it what it actually is:
I suspect Churchill and Keeneland want to build instant racing CASINOS near the Tennessee border because they think the potential amount of instant racing CASINO dollars is huge.
-jp
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