Press Release: TRACK OWNERS JOIN FORCES TO DEFEAT ‘BOOKIE AMENDMENT’

[Indulto]

Originally Posted by Charlie D

...(Another for you to add to total Indulto)

Just click on the number of replies to the rhread.

[Charlie D]

Whatever shakes you tree Indulto

[Stillriledup]

Originally Posted by Foolish Pleasure

Barry Meadows post is great comedy


he and other big bettors can't dope out winners so they going to bet everyone else to win by betting on the others to lose,

and that is some kind of revelation abt the utility of an exchange.



There is nothing in his post that is not addressed by lowering the win poool takeout to 5%.

It has nothing to do with not being able to dope out winners. It has everything to do with being able to make money on a correct opinion. How many times i've said "i knew this particular horse wasn't any good and i bet against him and still lost (even though i was right)"

Exchange betting permits a person who's right to make money on that opinion. Most horseplayers are wrong more than they are right, so when you're right, its imperative to make money.

[Indulto]

Originally Posted by DeanT

it's actually pretty neat Indy (finding the betting stuff that goes on the odd time). From my understanding it sticks out like a sore thumb. I remember the Davedeynko tennis match. A friend who plays called me and said "check this out". The trading was astounding.

I think they make deals with each sport through an MOU, and part of it is integrity; kind of like NASDAQ market surrveillance.

Here is a pdf about some of it. I find it fascinating.

http://www.canadiangamingsummit.com/...WC7-Davies.pdf

Thanks for the link, Dean. Interesting reading.

[PaceAdvantage]

Originally Posted by Indulto

Just click on the number of replies to the rhread.

Wow...even *I* didn't know about this feature...

All these years and I either never noticed or never thought to click on that link...wow...

[mannyberrios]

Originally Posted by Stillriledup

It has nothing to do with not being able to dope out winners. It has everything to do with being able to make money on a correct opinion. How many times i've said "i knew this particular horse wasn't any good and i bet against him and still lost (even though i was right)"

Exchange betting permits a person who's right to make money on that opinion. Most horseplayers are wrong more than they are right, so when you're right, its imperative to make money.

You are right about that. And I hope that this betfair passes so we can take advantage of this great offer.

[andymays]

http://www.nctimes.com/sports/equest...f62c5f08b.html

Excerpt:

Thumbs down : There is a bill going through the state legislature to increase the takeout on several exotic bets with those funds going to increase purses in the state. Why do the bettors always have to fix the ills in this sport? Double thumbs down to Del Mar president Craig Fravel, who is in favor of the bill. Bettors are the lifeblood of this sport. If you continue to cut down on their winnings, they won't place the bets in the first place.

[DeanT]

Originally Posted by andymays

http://www.nctimes.com/sports/equest...f62c5f08b.html

Excerpt:

Bettors are the lifeblood of this sport.

I hope he did not say that too loud. My feed man is gonna be pissed. "No feed, no horses, no racing!"

[Charlie D]

No mention of the exchange part on there Andy, any idea why someone would omit such an important bit and not give that bit a

[Horseplayersbet.com]

Originally Posted by Fager Fan

Andy, how much does it cost to buy a deck of cards?

Insignificant when determining optimum takeout rates.

A small casino with just slots might cost $25 million to operate all year round. Their takeout rate is 7.5%. They find that at 7.5% they make $40 million in gross revenues. At 8%, they only make $39 million in gross revenue. At 15% they find they only make $30 million in gross revenues.

Lets say that because of union contracts, cost to operate the casino went up to $30 million, California horsemen and racetrack "logic" would be to raise the chop. But if they raise the chop, the total revenues decrease because they are already operating at optimum takeout rates in slots.

Horse racing is operating above the optimum takeout rate. Decrease the takeout rate, and gross revenues will increase.

But again, the cost of the operation is totally insignificant.

[DeanT]

It is interesting HP that this is a very hard thing to understand in racing - all other businesses, no big deal - but in racing, hard to grasp.

Most slot machines had 25% takeouts in 1970. Costs in 1970 were around 6X less than now.

Horse racing logic says that slot machine takeout in 2010 should be 150%

[Fager Fan]

Originally Posted by Horseplayersbet.com

Insignificant when determining optimum takeout rates.

A small casino with just slots might cost $25 million to operate all year round. Their takeout rate is 7.5%. They find that at 7.5% they make $40 million in gross revenues. At 8%, they only make $39 million in gross revenue. At 15% they find they only make $30 million in gross revenues.

Lets say that because of union contracts, cost to operate the casino went up to $30 million, California horsemen and racetrack "logic" would be to raise the chop. But if they raise the chop, the total revenues decrease because they are already operating at optimum takeout rates in slots.

Horse racing is operating above the optimum takeout rate. Decrease the takeout rate, and gross revenues will increase.

But again, the cost of the operation is totally insignificant.

I don't know where to begin with someone who thinks the cost to make a product is irrelevant to the product's sales price.

[DeanT]

Originally Posted by Fager Fan

I don't know where to begin with someone who thinks the cost to make a product is irrelevant to the product's sales price.

It's marginal cost Fager.

http://en.wikipedia.org/wiki/Marginal_cost

[Horseplayersbet.com]

Originally Posted by DeanT

It is interesting HP that this is a very hard thing to understand in racing - all other businesses, no big deal - but in racing, hard to grasp.

Most slot machines had 25% takeouts in 1970. Costs in 1970 were around 6X less than now.

Horse racing logic says that slot machine takeout in 2010 should be 150%

Horse racing actually is in an enviable business position. They still can grow based solely on going for optimum pricing.

Most businesses get there pretty quick and are there already, so their growth is predicated on fads and marketing, and/or innovations and improvements.

Horse racing doesn't even have to get into that stuff yet. All they have to do to grow is lower takeout to optimum price levels.

[Horseplayersbet.com]

Originally Posted by Fager Fan

I don't know where to begin with someone who thinks the cost to make a product is irrelevant to the product's sales price.

Try hard to understand my post. Take your time. Even if you need months.
Here is a hint: The cost to make the product is irrelevant on how much money gamblers will lose collectively over time. The only thing that matters is the price of the bet.