Churchill Downs Incorporated to Acquire Harlow's Casino Resort & Hotel

[trigger]

http://www.stockmarketsreview.com/news/37920/

[CryingForTheHorses]

Amazing how they spend money like its water and give us crap purses at Calder

[Charlie D]

Originally Posted by McSchell_Racing

Amazing how they spend money like its water and give us crap purses at Calder

Maybe the horsemen need to re-negotiate terms with CDI

[Saratoga_Mike]

Originally Posted by McSchell_Racing

Amazing how they spend money like its water and give us crap purses at Calder

I assume each track is viewed as an independent business unit by mgt - and quite rightfully so, imo.

[DeanT]

Originally Posted by McSchell_Racing

Amazing how they spend money like its water and give us crap purses at Calder

I thought the 3% takeout hike in April of 2008 was supposed to roll those purses up?

Apparently it did not quite work out as planned.

[Striker]

CDI has made consistent threats on having to close Arlington Park, especially if they cannot get slots in the near future, but can go ahead and make this investment without blinking an eye.

[Charlie D]

Originally Posted by DeanT

I thought the 3% takeout hike in April of 2008 was supposed to roll those purses up?

Apparently it did not quite work out as planned.

No surprise Dean is it???

[Saratoga_Mike]

Originally Posted by DeanT

I thought the 3% takeout hike in April of 2008 was supposed to roll those purses up?

Apparently it did not quite work out as planned.

Could you pls post CRC handle for the prior 12 months to the hike and the 12 months subsquently? You usually have that type of info. Thanks.

[Saratoga_Mike]

Originally Posted by Striker

CDI has made consistent threats on having to close Arlington Park, especially if they cannot get slots in the near future, but can go ahead and make this investment without blinking an eye.

They're running a business, attempting to maximize shareholder value.

[DeanT]

Originally Posted by Saratoga_Mike

Could you pls post CRC handle for the prior 12 months to the hike and the 12 months subsquently? You usually have that type of info. Thanks.

Calder's handle 2007 $490 Million (172 Dates)
2008 $378 Million (160 Dates)
2009 $334 Million (152 Dates)

http://cangamble.blogspot.com/2010/0...rst-night.html

2010 down 15% according to Bloodhorse, altho with less dates. According to CDI the drop in handle this year is somewhere around average.

[Saratoga_Mike]

Originally Posted by DeanT

Calder's handle 2007 $490 Million (172 Dates)
2008 $378 Million (160 Dates)
2009 $334 Million (152 Dates)

2010 down 15% according to Bloodhorse, altho with less dates. According to CDI the drop in handle this year is somewhere around average.

Wow those numbers are horrible - could you post the total numbers for all US tracks, too?

[DeanT]

I dont know that exactly. It's somewhere.

I did find the email sent to horseplayers who were complaining about the takeout increase in early 2008 at Calder. This is one of the funniest responses I have ever seen from racing. "Prices are going up so we have to increase takeout". That means, of course, that as inflation goes up you should raise takeout. i.e. in 2045, takeout will be 122%.

Thank you for taking the time to write to us at Calder.

Due to all-around higher costs of doing business, Calder Race Course found it necessary to increase the take-out percentages this season on certain wagers (Pick 3, 4, 5). A minor increase was also applied to daily double and exacta wagers. At present, there is no increase on win, place or show wagers, nor trifectas, superfectas or Pick 6s.

We understand that a raise in prices is undesirable for customers of any product; however, with the rise of costs in the current economic climate, an increase of our take-out was deemed necessary. Please note that Calder had not raised its prices in many years.

We appreciate you being a customer and hope to continue the relationship. We also encourage you to take advantage of the Twin Spires Club, our player reward program where you earn points, prizes and privileges based on your level of play.

[Saratoga_Mike]

Dean,

Could you also explain the impact on ADWs when a track like CRC raises their takeout by 3%? Unless the ADW pays more for the signal after the takeout increase, doesn't most of the increase accrue to the ADW? Sorry for the detailed question (and if you want to move it to a different thread, I understand), but I'd like to understand the math behind these moves. Thanks.

[Robert Goren]

CDI is going where the money is. The money is in almost any form of gambling except horse racing these days. I look for them to slowly but surely get out of the horse racing business. It is the smart thing to do.

[Charlie D]

Dean posted a link to blog that had some CDI information on it. It seemed to me they love horse racing, in particular the ADW side of it.