Keeneland apparently raising takeout

[GMB@BP]

Originally Posted by cj

It has already been happening. It may not be a boycott, but bettors are leaving and have been for years.

Beat me too it, think I said the same thing to you Twitter.

They point to takeout rates rising but that not having an affect on the overall health of the handle as wagering has gone up....but when the economy tanks and then rebounds yea handle will go up as well.

I wonder how wagering does say compare to 2006 when the economy was similar, adjusted for inflation?

Money has left this sport, many more people have left the sport than even shows with the computer batch betting systems creating a fake "health" of the sport and hiding what is droves of people heading elsewhere.

[Track Phantom]

What are hosts fees?

[Andy Asaro]

Originally Posted by Track Phantom

What are hosts fees?

Twitter

[Track Phantom]

Originally Posted by Andy Asaro

https://twitter.com/racetrackandy/st...86099080421378

The host fee is the amount of "take" that stays with the track that actually has the horses running live on their facility, correct? Did Keeneland raise those fees, too, and in essence increase takeout to accommodate additional host fees?

[Andy Asaro]

Originally Posted by Track Phantom

The host fee is the amount of "take" that stays with the track that actually has the horses running live on their facility, correct? Did Keeneland raise those fees, too, and in essence increase takeout to accommodate additional host fees?

You'd have to ask Ian Meyers or someone else about specifics.

[GMB@BP]

Originally Posted by Track Phantom

The host fee is the amount of "take" that stays with the track that actually has the horses running live on their facility, correct? Did Keeneland raise those fees, too, and in essence increase takeout to accommodate additional host fees?

bingo

[Track Phantom]

Originally Posted by GMB@BP

bingo

Did they raise takeout or adjust the amount of takeout that remains on track (i.e. host fee %). Or is it buried into the overall takeout? Just trying to understand why they are doing this.

[GMB@BP]

Originally Posted by Track Phantom

Did they raise takeout or adjust the amount of takeout that remains on track (i.e. host fee %). Or is it buried into the overall takeout? Just trying to understand why they are doing this.

The way I read it is host fees are going up, Kee was the first to go ahead, the increased takeout will account for the different rates they will be paying in the near future, this way they can tie it in one fell swoop.

Expect other tracks to follow suit with the increase to offset these new rates.

Just my opinion, but thats how I am reading it.

[highnote]

Originally Posted by Track Phantom

What are hosts fees?

Someone (HANA?) should write up a document explaining what all the jargon means.

[cj]

Originally Posted by Track Phantom

The host fee is the amount of "take" that stays with the track that actually has the horses running live on their facility, correct? Did Keeneland raise those fees, too, and in essence increase takeout to accommodate additional host fees?

Host fee is what is paid by ADW company, or OTB, or other track, to take the signal.

So let's say Keeneland sells their signal to Xpressbet or BetPTC for 8%. That is the host fee. If 100,000 is bet at the site on Keeneland racing, the ADW owes Keeneland $8,000.

The ADW keeps the difference between takeout and the host fee. So if Keeneland blended takeout for the money bet that day is 20%, the ADW gets $20,000 - $8,000 host fee. This is where rebates, if given, come from.

That is how I understand host fees. If I'm wrong hopefully somebody can help.

[cj]

The whole system needs to be scrapped and done over, but it is probably too late now. Tracks are trying to recover from the colossal mistakes they made when simulcasting and later ADWs came about. But doing so is alienating the average customer that isn't a whale but isn't a patsy either.

[AltonKelsey]

Originally Posted by cj

The whole system needs to be scrapped and done over, but it is probably too late now. Tracks are trying to recover from the colossal mistakes they made when simulcasting and later ADWs came about. But doing so is alienating the average customer that isn't a whale but isn't a patsy either.

Note entirely sure why a mistake 20 years ago should still be reverberating now.

Did they sign a deal with Beelzebub?

[Valuist]

Originally Posted by classhandicapper

The whole parlay vs. pic x argument is the biggest fallacy in horse racing. The crowd as a whole is losing money at a much faster rate betting exotics than WPS despite payoffs being higher than the parlay.

What you can do is argue that the pic x offers the potential to overcome the higher take because if the crowd makes multiple mistakes within the same bet sequence it can sometimes offer tremendous value.

You nailed it. I've been saying this for years.

[cj]

Originally Posted by AltonKelsey

Note entirely sure why a mistake 20 years ago should still be reverberating now.

Did they sign a deal with Beelzebub?

Well, it is. As with most things in this game, very little foresight was used. Simulcasting and later ADWs were viewed as free money without considering consequences.

[AltonKelsey]

Originally Posted by cj

Well, it is. As with most things in this game, very little foresight was used. Simulcasting and later ADWs were viewed as free money without considering consequences.

Sure, but after two decades or so, there should already be some normalization, unless the ineptness of those involved is even more epic than we imagine .