HTA / TRA Transcripts…

[DanG]

Links to the transcripts from the 2008 Joint Annual Meeting of HTA and Thoroughbred Racing Associations held earlier this year including the Racing & New Technologies panel.

Not a quick read but may be of interest to the more fanatical among us… (Links courtesy of Equidaily)


Racing & New Technologies: Having Missed the Television Boat a Half Century Ago, Will We be Left to Sink Again Without Adapting to New Forms of Communication?
http://www.harnesstracks.com/2008%20annual%20meeting/2008annualmeeting.htm

Panelists: Eric Wing, NTRA; Seth Merrow, Equidaily.com; Dave Johnson, Sirius Satellite Radio; Chris Scherf, TRA, moderator


Swimming with Whales: Will they Beach Offshore or Can They Be Returned to the Racetrack?
http://www.harnesstracks.com/2008%20annual%20meeting/2008annualmeeting.htm

Panelists: Nick Eaves, Woodbine Ent Group; Maury Wolff, racing economist & long-time major bettor; Dave Johnson, Sirius Satellite Radio, moderator


Keeping the "Race" in Racinos: Are they Simply Purse Builders, or Can They Offer Meaningful Opportunities to Broaden its Patronage?
http://www.harnesstracks.com/2008%20annual%20meeting/2008annualmeeting.htm

Panelists: Chuck Atwood, Harrah's Ent; Charles Hayward, NYRA; Jeff Gural, Tioga Downs & Vernon Downs; Rep Bill Oberle, Delaware House of Representatives; Chris McErlean, Penn National Gaming; Dave Johnson, moderator


Trust in the Pari-Mutuel System: Looking at Late Odds Changes
http://www.harnesstracks.com/2008%20annual%20meeting/2008annualmeeting.htm

Panelists: Phil Langley, USTA; Curtis Linnell, TRPB; Mike Maloney, owner, breeder and one of America's biggest horse players; Dave Johnson, moderator


The Mitchell Report and Racing
http://www.harnesstracks.com/2008%20annual%20meeting/2008annualmeeting.htm

Bennett Liebman, Albany Law School


Medication & Regulation: Can Research Succeed Without Stronger, Meaningful Support from Regulators; Including Prosecuting the Guilty while Protecting the Innocent
http://www.harnesstracks.com/2008%20annual%20meeting/2008annualmeeting.htm

Panelists: Alan Foreman, THA; Dr Scot Waterman, Racing Medication & Testing Consortium; Ed Martin, Racing Commissioners International; Ben Wallace, Past Trainer of the Year, Canada; Dennis Dowd, The Meadowlands, moderator

[OPM]

Hey Dan:
do you have any idea what the takeout was 50 yrs ago that Wolf was referring to. I seem to remember it was less than 10% and then has crept upward as inflation adjusted handle has stagnated and even decreased.
Maury does make a good point in that track owners were in control of everything until 20 yrs ago and handle was declining. Competition is the best thing for any business.
Gupta

[DanG]

Hey Dan:
do you have any idea what the takeout was 50 yrs ago that Wolf was referring to. I seem to remember it was less than 10% and then has crept upward as inflation adjusted handle has stagnated and even decreased.
Maury does make a good point in that track owners were in control of everything until 20 yrs ago and handle was declining. Competition is the best thing for any business.
Gupta
I don’t Gupta but I’ll try and find out.

You said it concerning competition. Horse racing has been handed several gifts in our country from its inception. From the monopoly on legalized gambling, to the birth of very inexpensive television coverage, to the current interstate wagering exemption giving it at least some leverage over poker.

With each advantage our industry hasn’t come close to maximizing revenue and has only recently starting to acknowledge its paying customers they have taken for granted and / or treated with contempt.

On the bright side; I was beginning to wonder 10 years ago if ANY of these major issues would be discussed openly in our lifetimes. That is clearly changing for the…bettor? (OK…That was one weak pun, but it’s early and I’m still reeling from the Ray game last night :D…sorry. :o)

[OPM]

Yeah, I am hoping that the Rays win the AL and the Mets win the NL:D. Had enough of Red Sox and Yankees

[OPM]

Note the date of this article!!!





A Lower Betting Tax Could Help New York

*
E-MAIL
* Print
* Save
* Share
o Digg
o Facebook
o Mixx
o Yahoo! Buzz
o Permalink

Published: March 27, 1990

LEAD: Last Friday morning at a hearing room in downtown Manhattan, the chairmen of two New York State Assembly committees demanded to know why the operators of Aqueduct, Belmont Park and Saratoga did not have more money in the kitty at the end of last year.

Last Friday morning at a hearing room in downtown Manhattan, the chairmen of two New York State Assembly committees demanded to know why the operators of Aqueduct, Belmont Park and Saratoga did not have more money in the kitty at the end of last year.

It was as if a whale had drained a swimming pool in one gulp and then asked its owners where all the water went.

To say this is no slap at Ivan Lafayette, the Queens Democrat who is chairman of the Assembly's Standing Committee on Racing and Wagering, or Richard L. Brodsky, a Westchester Democrat who chairs the Standing Committee on Oversight, Analysis and Investigation. Unlike most of their colleagues, these legislators have taken an active interest in New York racing, and that alone is cause to hope for improvement.

But the biggest problem with racing in New York State is New York State.

Officials of the New York Racing Association, which operates the state's three major tracks, defended their finances Friday by taking the offensive. While much of their presentation was self-serving, the facts they presented were indisputable:

The 5.3 percent tax extracted by New York State from the parimutuel handle is badly out of line with other racing states. The state's share is only 1.9 percent in Pennsylvania, 0.9 percent in Maryland and 0.7 percent in New Jersey.

Nationwide, New York attracts 26.6 percent of all parimutuel betting, but pays 40.2 percent of all parimutuel taxes.

Over the last decade, New York on-track betting has declined 6.5 percent despite inflation, while operating expenses have increased by 20 percent. rrIs it any wonder that the N.Y.R.A., after handing over more than $42 million to the state last year, had nothing left over?

Despite the frequent characterization of New York racing as an industry in crisis, and the pining of old-timers for the good old days that never were, overall business has never been better. Purses are climbing steadily, and were nearly 50 percent higher at Aqueduct this winter than they were amid better weather, more soothing surroundings and classier horses at Gulfstream near Miami.

Betting is booming as well. The handle on Saturday's nine races at Aqueduct was $9.96 million. The same day, 11 Gulfstream races drew $2.61 million in bets.

The problem is that only $4.1 million of that $9.96 million in New York was bet at Aqueduct, with the rest being wagered at Offtrack Betting and simulcast outlets. The N.Y.R.A. retains 9.3 cents of every dollar wagered on track for its operations, but only 1.9 to 2.5 cents of every dollar wagered at OTB. In 1981, 47 percent of the statewide handle was bet at the track. Last year, only 37 percent was.

OTB hurts rather than helps New York racing because of its inane structure. A generation ago, misguided N.Y.R.A. executives turned down the chance to operate OTB as an arm of the tracks, and the sport has paid for it ever since.

Legislators created six redundant regional OTB corporations whose primary function has been to drain money from the sport in order to support a bureaucracy. New York OTB has become a nationwide laughing stock and model of what not to do. Every other state has linked OTB with the tracks. rrThe N.Y.R.A. argues that it supplies a product, and that OTB should be the marketing arm for that product rather than a competitor. At the same time, the N.Y.R.A. has got to do a much better job of marketing its own product.

While many of the N.Y.R.A.'s problems stem from lack of funds, it has failed in a more basic way. With the exception of the 24-day Saratoga phenomenon, the N.Y.R.A. has not made going to the races a sufficiently attractive proposition to stem the departure of patrons to OTB shops or other forms of amusement. A new paint job every few years and new flavors of fast food are not enough. The game needs truly new ideas and promotions to attract new players.

It also needs relief to keep the old ones. The parimutuel takeout of 17 to 25 percent, coupled with punitive Federal and state withholding taxes on bettors' gross proceeds rather than their net profits, have made winning more difficult and losing more expensive than ever.

Every experiment and study in reducing takeout and taxes has shown that business will increase in the long run. Legislators, however, are always unwilling to sacrifice any short-term revenue.

The same is true with reducing the state's piece of the action. The resurgence of Maryland racing was due in part to the late Frank DeFrancis's superior management, but he never would have had the chance had the state not reduced its cut to 0.9 percent of the handle. That freed up operating money so that he could improve the facilities, install attractive high-tech handicapping aids and make Laurel and Pimlico places where people wanted to spend an afternoon.

The N.Y.R.A. could be doing a better job with its current resources, and it probably does deserve closer outside scrutiny than it has gotten in the past. Its shortcomings, though, pale next to the state's taxation rate and the current structure of OTB. The legislators only need to turn the mirror on themselves to find the game's most serious problems, and the solution to them.
Ads by Google

[DanG]

Note the date of this article!!!

A Lower Betting Tax Could Help New York

Published: March 27, 1990

The 5.3 percent tax extracted by New York State from the parimutuel handle is badly out of line with other racing states. The state's share is only 1.9 percent in Pennsylvania, 0.9 percent in Maryland and 0.7 percent in New Jersey.

Nationwide, New York attracts 26.6 percent of all parimutuel betting, but pays 40.2 percent of all parimutuel taxes.

Legislators created six redundant regional OTB corporations whose primary function has been to drain money from the sport in order to support a bureaucracy.

The game needs truly new ideas and promotions to attract new players.

It also needs relief to keep the old ones. The parimutuel takeout of 17 to 25 percent, coupled with punitive Federal and state withholding taxes on bettors' gross proceeds rather than their net profits, have made winning more difficult and losing more expensive than ever.

Every experiment and study in reducing takeout and taxes has shown that business will increase in the long run. Legislators, however, are always unwilling to sacrifice any short-term revenue.

The legislators only need to turn the mirror on themselves to find the game's most serious problems, and the solution to them.

Excellent article Gupta that 18 years ago strikes to the heart of our current dilemma.

Thanks.

[OPM]

It shows what morons there are in horse racing. If you are given the ability to control OTB and you turn it down!!!
Hey, do you know if the American Racing Manual gives takeout rates?

[DanG]

It shows what morons there are in horse racing. If you are given the ability to control OTB and you turn it down!!!
Hey, do you know if the American Racing Manual gives takeout rates?
My memory is foggy on that Gupta; I haven’t seen one in a while and gave away a large collection many years ago (before the berth of EBay! :eek:).

Here at Tracktheives they post some major rates although I’m not sure their 100% correct: http://www.trackthieves.com/
Track WPS DD P3 4 6 Exacta Tri Super Notes
ALB 19.00% 22.00% 22.00% 25.00% 25.00%
AQU (1) 15.00% 17.50% 25.00% 17.50% 25.00% 25.00% (1) P6 .15 no carryover
AP 17.00% 20.50% 25.00% 20.50% 25.00% 25.00%
ASD 19.00% 26.00% 29.00% 26.00% 29.00% 29.00%
BM 15.40% 20.70% 20.70% 20.70% 20.70% 20.70%
BEL (1) 15.00% 17.50% 25.00% 17.50% 25.00% 25.00% (1) P6 .15 no carryover
CA Fairs16.80% 21.50% 21.50% 21.50% 21.50% 21.50%
CRC 18.00% 20.00% 24.00% 20.00% 27.00% 27.00%
CBY 17.00% 23.00% 23.00% 23.00% 23.00% 23.00%
CT 17.30% 19.00% 19.00% 19.00% 25.00% 25.00%
CD 16.00% 19.00% 19.00% 19.00% 19.00% 19.00%
COL 18.00% 22.00% 22.00% 22.00% 22.00% 22.00%
DMR 15.40% 20.70% 20.70% 20.70% 20.70% 20.70%
DEL 17.00% 19.00% 25.00% 19.00% 25.00% 25.00%
ELP (2) 17.50% 22.00% 22.00% 22.00% 22.00% 22.00% (2) Promo P4 .04 in '07
EMD 16.10% 22.10% 22.10% 22.10% 22.10% 22.10%
FE 17.00% 26.20% 26.20% 26.20% 26.20% 26.20%
EVD 17.00% 20.50% 25.00% 20.50% 25.00% 25.00%
FG 17.00% 20.50% 25.00% 20.50% 25.00% 25.00%
FPX 15.40% 20.70% 20.70% 20.70% 20.70% 20.70%
GG 15.40% 20.70% 20.70% 20.70% 20.70% 20.70%
GP 15.00% 20.00% 20.00% 20.00% 25.00% 25.00%
HAW (3) 15.00% 17.50% 23.00% 17.50% 23.00% 23.00% (3) Promo rate P4?
HOL 15.40% 20.70% 20.70% 20.70% 20.70% 20.70%
HOO 18.00% 21.50% 21.50% 21.50% 21.50% 21.50%
HOU (6) 18.00% 21.00% 25.00% 21.00% 21.00% 25.00% (6) P3 = 12%
IND 18.00% 21.50% 21.50% 21.50% 21.50% 21.50%
KEE 16.00% 19.00% 17.00% 19.00% 19.00% 19.00%
LRL (4) 18.00% 21.00% 25.80% 21.00% 25.80% 25.80% (4) Promo rate P4?
LS 18.00% 21.00% 25.00% 21.00% 25.00% 25.00%
LA 15.40% 20.70% 20.70% 20.70% 20.70% 20.70%
LAD 17.00% 20.50% 25.00% 20.50% 25.00% 25.00%
MED 17.00% 19.00% 25.00% 19.00% 25.00% 25.00%
MTH 17.00% 19.00% 25.00% 19.00% 25.00% 25.00%
MNR 17.30% 19.00% 25.00% 19.00% 25.00% 25.00%
OP 17.00% 21.00% 21.00% 21.00% 21.00% 21.00%
PEN 17.00% 20.00% 28.00% 22.00% 31.00% 31.00%
PHA 17.00% 20.00% 26.00% 20.00% 30.00% 30.00%
PIM (4) 18.00% 21.00% 25.80% 21.00% 25.80% 25.80% (4) Promo rate P4?
PRM 17.00% 20.00% 23.00% 20.00% 23.00% 20.00%
PID 17.00% 20.00% 26.00% 20.00% 26.00% 29.00%
RD 18.00% 22.00% 22.00% 22.00% 22.00% 22.00%
RET (6) 18.00% 12.00% 21.00% 21.00% 25.00% 25.00% (6) P3 = 12%
RUI 16.80% 21.00% 25.00% 21.00% 25.00%
SA 15.40% 20.70% 20.70% 20.70% 20.70% 20.70%
SAR (1) 15.00% 17.50% 25.00% 17.50% 25.00% 25.00% (1) P6 .15 no carryover
SUF 19.00% 26.00% 26.00% 26.00% 26.00% 26.00%
SUN 19.00% 21.00% 25.00% 21.00% 25.00% 25.00%
SRP 19.00% 22.00% 22.00% 22.00% 25.00% 25.00%
STP 16.40% 24.80% 24.80% 24.80% 24.80% 24.80%
TAM 17.50% 20.00% 20.00% 21.50% 25.90% 25.90% (7) P6 = 25%
TUP 20.00% 21.00% 25.00% 21.00% 25.00% 25.00%
TP 17.50% 22.00% 22.00% 22.00% 22.00% 22.00%
WO 17.00% 20.50% 26.30% 20.50% 28.30% 26.30%
YAV 20.00% 21.00% 25.00% 21.00% 25.00% 25.00%
AVERAGE 17.10% 20.70% 23.30% 20.90% 24.00% 24.00%