ADW handles soaring in Q1

[NoCal Boy]

Youber reported its handles are up in excess of 30% for the first two months of 2009. Twinspires reported their handle is up 27% for the same two months. This in the face of industry handle declines. There is a noticeable shift to ADW handles going on that is likely not to be abated in this economy.

[cj]

Of course they are going up, they have most (all?) of the signals back. How do they compare to the first two months of 2008? 2007?

[NoCal Boy]

Having all of the signals only explains part of it due to the large dollar increase. Youbet said they are getting a greater wallet share of the handle. People who used to use two accounts are no longer and Youbet is a beneficiary of it. In addition, Twinspires had similar content year over year and they are up 27%. This greater than normal shift to ADW started when gas prices spiked but has accelerated with the poor economy. The fact that handles at 2 of the 4 major ADWS (is Xpressbet still going to be a major ADW in a few months?) are way up is significant. My guess is TVG is also up albeit smaller due to the track content there.

Originally Posted by cj

Of course they are going up, they have most (all?) of the signals back. How do they compare to the first two months of 2008? 2007?

[DeanT]

I would hope TS is growing at 30% per year with the money they are spending on their website. It is mind boggling how much they are putting into that, imo.

[schweitz]

Around october or so Twinspires picked up all the Betpad customers that they didn't get when they bought out BrisBet (Texas and 4 or 5 other states).

[NoCal Boy]

good information. that would explain some of TS's increase.

Originally Posted by schweitz

Around october or so Twinspires picked up all the Betpad customers that they didn't get when they bought out BrisBet (Texas and 4 or 5 other states).

[Unome]

Since things are so peachy keen at Youbet maybe they won't find it necessary to send the majority of their daily handle to California to avoid paying taxes in Oregon which every other ADW does that is licensed in Oregon like Youbet.

[NoCal Boy]

Originally Posted by Unome

Since things are so peachy keen at Youbet maybe they won't find it necessary to send the majority of their daily handle to California to avoid paying taxes in Oregon which every other ADW does that is licensed in Oregon like Youbet.

Youbet is one of the few (only?) ADWs that also has a multijurisdictional hub license through California. Kentucky is wooing Twinspires to hub there now as well. It is simply smart business.