Magna pulls the plug - Horse Racing Forum - PaceAdvantage.Com

Tom · 12-24-2003, 07:50 PM

I heard Magna pulled the plug on its signal from AmericaTab and other on line betting services.
Has BRISBET mand any comments on this?
I assume You Bet will still carry the signals?

JimG · 12-24-2003, 07:53 PM

The Youbet ROC on the Youbet message board said they were carrying Santa Anita and Golden Gate for sure. No mention of Gulfstream.

BillW · 12-24-2003, 08:36 PM

Tom,

http://www.americatab.com/new_wagert...0/brisbet.html

It's on their site. This gets back to the brilliant marketing Larry was talking about. Good riddance to Stronach ... Hollywood lost handle, let's hope the trend continues at least thru the SA meet. (I don't wish any of the other operations on the west coast any ill will, they are good operations and simply victims of their geography)

I hope that AmericaTab does not cave financially on this one, just shut them out. They pulled this before, but I don't know what kind of deal AmericaTab made.

Bill

Figman · 12-24-2003, 09:04 PM

All six NY OTB corporations, all of whom have their own telephone account wagering systems, have a signed sealed and delivered contract to carry Santa Anita. And this will be the first year that all carry every Santa Anita race. No word on Gulfstream as yet.

Larry Hamilton · 12-24-2003, 09:15 PM

Is it time to revisit conversation on the off shore betting facilities?

shots · 12-24-2003, 09:16 PM

Will this slow the money coming in from offshore accounts for awhile?

rrbauer · 12-25-2003, 12:07 AM

Here's the info from Santa Anita on Internet Video streaming:

Live Video

Dear Race Fan,

Due to the cost and piracy of racing signals all over the country, including Santa Anita Park, we can no longer offer free video streaming to our customers. Consequently, beginning January 12, 2004, those who would like to view our streaming video may be required to pay a nominal monthly fee. If you would like to avoid such fees, we suggest that you sign up for a free XpressBet wagering account, which grants you complimentary free video streaming. For those who reside in a state that does not permit such membership this “pay per view” system will now afford you the opportunity to view our signal for the very low price of $4.99 a month per track.

Please accept our apologies for any inconvenience this may cause and we hope that you will be able to utilize the free live video streaming while we complete this transition. Be sure to sign up prior to January 12, 2004 so that you don’t miss a moment of exciting world-class thoroughbred racing!

BillW · 12-25-2003, 12:42 AM

While I have expected this to happen (can't blame them) it is an interesting use of the word "piracy" for a freely available video stream. I guess that implies that the people watching the free video they supplied were criminals? It's tough being a degenerate customer

Bill

Larry Hamilton · 12-25-2003, 12:52 AM

The line I liked was

" If you would like to avoid such fees, we suggest that you sign up for a free XpressBet wagering account"

as if that is my only choice..have they forgotten the pull the plug option -- arrogant bastards...

shots · 12-25-2003, 01:05 AM

This is just the start, they probably will start a fee to make bets online.

Speed Figure · 12-25-2003, 01:06 AM

They have to do this. TVG is kicking there A$$!!

shots · 12-25-2003, 01:17 AM

Looks like its timed with the opening of Santa Anita and Gulfstream Park, Magna tracks. That gives them two of the big four circuits on at the same time.

VetScratch · 12-25-2003, 06:11 AM

None of the companies involved in fee negotiation squabbles seem capable of telling the straight facts to customers... ESPN and Cox Cable are currently feeding streams of conflicting BS to anyone who will listen.

We can expect the same in racing because the tracks were stupid when they started selling the convenience of off-track wagering... you can't sell convenience so cheap that it drives you out of business.

According to Blood-Horse analysts, selling simulcasting for 3% to 4% (as compared to 14% to 17% normal takeout) was a time bomb that had to explode sooner or later.

Internet and simulcast wagering outlets refuse to accept fee hikes on contract renewal anniversaries, so they claim tracks "pulled the plug." Meanwhile, industry analysts point out that Internet/simulcast wagering providers are getting away with highway robbery... buying pari-mutuel access for 3%-4% that they immediately sell to horseplayers for 14%-17% (the normal takeout).

Until the independent tracks and conglomerated interests like Magna, Churchill, and NYRA can hike their average export fees to at least 6%, we can expect squabbles and BS every time contract renewal negotiations break down.

A lot of NYRA's financial woes are attributable to only being able to get 4% for selling convenience wagering on some of the best racing in America. The same holds true for any other racetrack organization, and many tracks are fighting to hike fees above 3%.

Furthermore, the whole takeout situation is a mess... NY and CA takeouts are possible because those states reduced the state tax share of handle to as low as 1.6%. Meanwhile, many other states still grab 3%-5% of handle. Since we bet with after-tax dollars, players look at the state share of takeout as double taxation. If every state would stop taxing pari-mutuels, we could see 12%-14% takeout everywhere while still contributing to the horse industry in each state.

melman · 12-25-2003, 09:53 AM

Should be an interesting next couple of years in the field of at home betting operations. This is something the racing industry should be working on. Of course these guys are clueless and have no ideas. I expect more and more annoucements of no more free content or video. The sending track should be getting a larger slice of the take but how much larger?? Then you have the off shore factor as these guys pay nothing for any info or signal. Like I say should be interesting. One thing for sure is that people are not going to go back to attending the track on a regular basis. Only Saratoga and DelMar have a shot at that.

linrom1 · 12-25-2003, 11:04 AM

VetScrach, your analysis is correct. But, I think that 6% signal fee is still too paltry.

As a YouBet customer I was ,of course, at first upset about Magna's decsion to pull the plug on GP, untill I realized how silly it is of me to expect everything for free. So I did what others should also do--I funded my Xpressbet account, and made a plan to actually go to GP for the first time in years.