Recently, The Blood-Horse Magazine asked 29 people for their suggestions on how to improve horse racing. It was the kind of question for which answers have been given time and again and, consequently, very few of the suggestions were original. The dearth of ingenuity expressed may be owed to the ease with which the people who were questioned were able to dispense with an answer by reprocessing suggestions that others, specifically those not invited to participate, had already given. The source, in this case, was suspicious.
Not one high-ranking representative of the Breeders’ Cup, National Thoroughbred Racing Association or The Jockey Club, or any of the organizations that are supposedly at the center of power, was asked. Neither, for that matter, was the media.
“We wanted to hear from people who are actually out there in the industry making a living, or more actively involved in some aspect,” Mitchell explained, after noting that industry leaders which his magazine neglected have a standing forum for ideas. As for the slight to the media, Mitchell indicated that after some deliberation his staff believed that it had selected the right people without them. Yes, he admitted that the chosen respondents might have offered nothing different. But that they were asked seemed sufficient to him.
The Blood-Horse divided its survey’s respondents into eight different categories. But the three individuals represented as Horseplayers/Fans were professional gamblers, thus suggesting that a third group was not included. Horse racing has a sizable following of non-bettors or casual bettors that crave an improvement for the sport. On the totem pole of influence, however, these faces are almost invisible, having neither money nor clout.
“Because horse racing is kind of a small enough sport and it still has a lot of intimacy, the media interacts with the fans. Many of the media are horse racing fans themselves,” noted Tom Law, president of the National Turf Writers and Broadcasters. “I do look at the media as having a position to speak for the fans,” Law admitted, stressing that journalists who are doing their jobs properly have to mingle with all segments involved.
“Every member of the media has the responsibility to his readers to point out things that aren’t working and point out things that are working. That’s the role – to report the news, but also to put it into perspective and to point out what it means and how it affects the industry,” Law believes. Nevertheless, except for the rare exception, even the most conscientious turf writers haven’t influenced the sport to operate in many ways for its own good. They, like the survey’s respondents, seem to have their ideas entertained, rarely acted upon.
So, what was the purpose? Mitchell said that the survey was research. Aside from contributing eight pages of content to a wafer-thin 48-page publication, the article enabled people, accomplished in industry specialties but not often heard from, to sound off on issues. In addition, the survey revealed a consensus. Never mind that it’s unclear of who might have stated the ways to fix horse racing first, there was general agreement among 29 people. That, in itself, is unusual.
Although The Blood-Horse determined that the respondents settled on five ways to fix horse racing, there were really only four in the conclusion. Numbers four and five – both addressing the need for medication policy reform - were so decidedly intertwined that they’re hardly separable. If there was a long shot in the bunch, it was the recommendation that the sport should appoint a commissioner and organize nationally. It, too, was eerily similar to another suggestion; that suggestion was to market the sport widely and aggressively.
Ironically, in one sense, all five recommendations are nothing new. Horses ran drug-free before the expansion of racing dates. With Tim Smith directing the activities of the NTRA as a de facto commissioner, handle and attendance grew handsomely. Less is more was the principle that safe-guarded churn and guaranteed that the sport appeared precious. The emergence of endless horse racing burst the bubble. Greed put an end to the common sense that existed.
Now, regardless of how advisable reversing the clock is, temperance seems almost hopeless. The changes required won’t arise from the obvious. The sport has fallen too far, become mainstream irrelevant and dependent on competitors that bring no positive bearing on its value prop. The uniquely American love of money poses a persistent confusion. Considering its position, the business should behave as a start-up. Instead, it is harvesting revenues.
Managed properly, a start-up will prosper eventually. But who in horse racing has the patience? Moreover, who has the vision? What The Blood-Horse’s cover story substantiated is that the sport finds itself in the unenviable bind of adhering to presumptions that nobody can prove because nobody can implement. Characterize the survey’s respondents however you wish. Just don’t interpret their conventional wisdom as advice that can solve anything.
Vic Zast has been a contributor to The Blood-Horse for nearly a dozen years. He writes Vic Zast's Saratoga Diary for bloodhorse.com each summer.


04 Apr 2011 at 07:28 am | #
Horse Racing is just not a good bet for most people and the handicapping learning curve is tougher than ever. Most people give it a shot and then give up. It is still a good bet for those who can get significant rebates. Doesn’t giving one player a significant edge over anther kind of violate the pricipal of parimutuel wagering? How does someone compete when they get 0 rebates and some others get anywhere from 3% up to over 20% rebates in some cases.
Most large players would give up their rebates if the takeouts were lowered accross the board for everyone. If they did that more people (especially new players trying to learn the game)would go home winning a lot more often than they do now. I’m guessing that if rebates were eliminated the takeouts would range anywhere from 12% to 14% across the board. Then we’d have bigger pools.
Having said that I don’t espect the industry to listen any time soon. Do they ever listen?
04 Apr 2011 at 07:42 am | #
Dear Andrew A:
I’m in total agreement with you, if only the tracks did not have to compete with the bloodsucking off-shore entities that are operating outside the pari-mutuel pools, which has to be hurting the game immensely. We put on the show, and they ride our coattails; it just ain’t right.
Did you see the handle at Gulfstream yesterday; there is plenty of interest in good racing in this country, even during a difficult economic time.
TTT
04 Apr 2011 at 09:10 am | #
Pari-Mutuel wagering is different from casino betting.
Casino betting is when you play against the house.
Pari-Mutuel betting is where the facilitator takes from the top and the participating players COMPETE for a share of what is left of the pool. Fair competition is when all the players have a level playing field.
Pari-mutuel was designed that the winners would be determined in the long term by the science of handicapping… not who gets the largest rebate.
Handicapping value is downgraded by rebates.
There are no universal rules to determine who gets a rebate and how much. The ADW owner can give his next door neighbor a rebate and by pass a 20 year loyal patron.
ADW’s are nothing more than a field office of the race track pari-mutuel department, and should be run the same way..what if the race track teller chose who would get a rebate and said to some patrons after selling tickets to go to another window and get a rebate, and by pass others?
Rebates to some and not others is like giving some horses in a race a head start. Rebates destroy the fair competition concept of pari-mutuel wagering.
In jurisdictions which rebates are allowed for some and not others… there is no such thing as pari-mutuel racing anymore. It is conducted in name only.
Andrew A and TTT are right on… fairness dictates a level playing field for all.
Roger Way
04 Apr 2011 at 10:24 am | #
Gebtlemen,
We all know it’s the states who essentially set the rates by usually falling on the side of higher takeout. To say that government is short-sighted would be redundant.
I assume (dangerous, I know) that the industry knows just how much offshore sites are siphoning from the pools by acting as bookmakers.
If the tracks acted in concert and demanded that lower shares go to all state coffers so that revenues would increase because while getting a much smaller share, the pie would be considerably bigger.
For the life of me, I don’t know why the industry as a whole refuses to use its collective clout. This industry continues to pay much more than its fair chare while corporations like GE actually get refunds.
This industry may be in the gambling business but it srefuse to bet on itself. Perhaps the only hope is for increased competition among the tracks whereby players frequent those tracks that give them a better bang for their buck. Horseplayers must show character in this regard.
SA and GP, in the same corporate family, have been clear examples of how this concept works in today’s racing world. No amount of spin can change that reality. Horseplayers MUST remain vigilant via the intelligent use of their betting dollars.
JP
04 Apr 2011 at 10:44 am | #
That’s a nice thought John, but most horseplayers are creatures of habit and have their “preferred” tracks. I’m no different.
I play SoCal and NYRA. SoCal because I’ve had measurable success over the years and NYRA for no other reason that I’m familiar with NY racing. Frankly if a circut deserved to boycotted it’s NYRA with their 26% take on exotics.
Tracks where I’ve had little success, I’m not going to play no matter what they do with takeout, because over time, I haven’t picked enough winners for it to matter.
04 Apr 2011 at 11:49 am | #
Hi Vic --
Always enjoy your articles and you make some good points here. But, when you say “not one high-ranking representative of the Breeders’ Cup, National Thoroughbred Racing Association or The Jockey Club, or any of the organizations that are supposedly at the center of power, was asked. Neither, for that matter, was the media”, I must take issue, and for a different reason than given by Eric Mitchell at The Bloodhorse.
I agree that the media should have been included. But why ask the people in power when they have no clue or no inclination to do what is necessary to revive the game? Their approach has been an utter failure. The power structure needs to be told what to do, not asked what to do. As for your “dearth of new ideas”, I’d settle for the industry actually IMPLEMENTING the ideas many of us have already proposed.
Did you read my story on the new Jockey Club study that appeared on this site? We don’t need many new ideas, we need ACTION on the ones so many of us (outside the power structure) have proposed. How about a 5% rebate for losing tickets bet at the track on the host track’s races),lower takeouts, and less racing which will lead to more liquidity in the pools?
Don’t blame the messengers. Blame the industry for not listening to its customers and running the game like a public utility rather than a business based on free market principles.
Best Wishes
CARY..
04 Apr 2011 at 09:18 pm | #
I’ve been a horse handicapper since the early 70’s. It’s a dying sport rigidly run by rich people in state fiefdoms all over the country. To survive, it needs to change to get out of the death spiral it’s in.
I live near Las Vegas. Many years ago, slot machines were the last thing casinos looked at to make money. The takeout rate was terrible, similar to what horse racing’s takeout is today. They “loosened” the slots, lowering the takeout rate to 1 and 2 per cent and advertised it. Slots are now their biggest money maker. They discovered that “churn” keeps people coming and not only playing at the slots but spending elsewhere in the casino also. I’m not suggesting 1 or 2 per cent for horses since the dynamics are different. However, lower the takeout to 10 per cent and the breakage to a nickel! Watch them pour in!
The other problem with horse racing is the archaic terms they use. It turns off the younger generations. They have to entice them in with concerts and other non-racing entertainment. Archaic? How about that tote board? They still use fractions! It’s 2011, for crying out loud. Ever see a kid (or my wife) who can do fractions? Let’s see… 9-5. Divide the right side into the left side, multiply by something and add something. Sheesh. Make all bets $1.00 and show what $1.00 will pay for all bets on the tote board. Make bet names understandable to the newbies. Place? Super 5? What the heck?
Sorry for the rant but I hate to see the sport that I love go down John Crapper’s invention.
04 Apr 2011 at 11:40 pm | #
VZ,
It’s hard for me to understand why someone who has multiple outlets for his “influential” opinion felt it necessary to complain and criticize when the “uninvited” got an opportunity to express theirs.
For several years now, commenters at HRI have regularly asked turf writers to lead the charge for reform. John Pricci has stepped up for horseplayers, and Bill Christine speaks out in the face of the most egregious offenses, but where have you been for racing’s customers? And where were your own five brilliant innovations to offset the “dearth of ingenuity” expressed in the Blood Horse piece?
It seems fo me that the only consistent target of your critical energy has been horseplayers – people who GAMBLE on horse races recreationally as well as professionally. Exactly how did you determine that the current livelihood of all three players to which you referred was dependent upon their alleged income from wagering?
Even recreational bettors – regular or casual—try to make a profit as elusive as they are. The non-betting fans at the bottom of your totem pole are not without value, but the biggest headline from Sunday was not that Dialed In won the Florida Derby, but that the Gulfstream card was able to attract $22 million in handle.
05 Apr 2011 at 02:18 am | #
NEEDED CHANGES (IMO):
Takeout dropped to 10% on W/P/S wagers…
Takeout dropped to 15% on all other wagers…
Legal theft of customer’s change (breakage) eliminated…
Exchange wagering for Americans legalized…
Wagering system modernized/comparable to NYSE software…
No drugs in the starting gates. NONE!!!
Final odds before the gate opens; not after the race ends…
All information displayed in REAL TIME…
Enforce all rules/laws across ALL jurisdictions…
3 strike rule; NOT hundreds of chances…
Guilt by association for those working with cheaters; use (Federal RICCO model)…
Who are we kidding? Staus quo maintained until it dies completely in the middle of some “new” round table meeting…
Like using an outhouse where everyone else craps on top of the lid rather than under it. This industry is putrid and its’ fate is completely in the hands of greedy, ignorant, shortsighted fools. RIP…
05 Apr 2011 at 05:57 am | #
Dear AndrewA, rwwupl, John Pricci, CFotias, GaryWalker, easygoer132.2, John Zenyatta, Indulto and simplyNotsureRU:
If you fellows had the authority needed to make the obvious arm’s-length changes needed, internally, and legislatively, I’m confident that if you were put in a room together to hammer out the particulars, this would once again become the Sport of Kings. Mr. Zast could supervise and tell you what you were doing wrong.
And I want assurance that we will always have a real horn blower that studied at Juliard, not a recording. Dahhhhh, dah dah dah dah dah dah, dah dah dah dah, dah dah dah dahhhhhhhhh.......
TTT
05 Apr 2011 at 07:36 am | #
So, is anything going to change this year? Now into April it’s the same ol’ same ol’: Commentary on the Kentucky Derby’s possible entrants, then it will be on to the Preakness, then the Belmont, then the Travers/Pacific Classic, then the Breeders’ Cup; with the same usual suspects training the current supper horses. This so-called ‘sport’ is in actuality all about gambling, isn’t it? So where is the money, honey, when wagering on these deemed superior races for us gamblers who crave lower takeout, rebates, et cetera?
Uncle Mo is coming to New York. Wow! What is the race worth to me, except maybe including this huge purse race in a pick three or four? Or, should we all be playing the game of trying to beat the heavy favorite by defying handicapping skills and logic and wager instead on another entrant in the race?
Year after year turf writers and racetrack managements’ emphasis is on a handful of horses and stake races, when the emphasis should be on gambling and the money that can be won.
Indulto: I read that the handle Sunday at Gulfstream was $19.7 million and the purses totaled a ridiculous $1,841,000. Think Gulfstream operated profitably Sunday? According to track management it was a terrific day - it’s the new math! And where did the money come from for the purses ("Yo, seven’; “hit me”; “double zero, double zero”; “black jack")?
And the beat goes on ....
05 Apr 2011 at 10:26 am | #
wmc,
Thanks for the correction. Indeed the DRF reported $19.7 M. Wherever I got the other figure from, it was either corrected since or else I experienced another senior moment.
05 Apr 2011 at 10:34 am | #
A point of clarification, if you will.
Vic states: “Yes, he (meaning me) admitted that the chosen respondents might have offered nothing different. But that they were asked seemed sufficient to him.”
What I recall saying is that we expected to see a lot of the same recommendations that had been circulating for a while: uniformity in medication and licensing, more stringent penalties for medication abuses, and more national marketing of the sport. What I also noted in my column is that we got 50 different suggestions from this group, including what I thought were some very pointed and specific recommendations I had not seen before. Such as, lowering the stakes purses for 2-year-olds and 3-year-olds and increasing the stakes purses for older horses as an incentive to keep horses racing longer.
It should also be noted that McKinsey and Company, which is doing the current state of the industry study for The Jockey Club, is compiling editorials and commentaries as part of its research and intends to interview a couple hundred industry participants. The company is not limiting its research to executives with the NTRA, Breeders’ Cup, or The Jockey Club.
To easygoer132.2; I’ve reviewed all the comments that were submitted for the “Sounding Off” blog post. All comments have been posted but I don’t see yours. I would encourage you to try submitting something again...remember nothing libelous or profane.
Eric
11 Apr 2011 at 09:09 am | #
MA$TER PROMOTOR???...PLEASE...ty…
01 Jun 2011 at 10:16 pm | #
It should also be noted that McKinsey and Company, which is doing the current state of the industry study for The Jockey Club, is compiling editorials and commentaries as part of its research and intends to interview a couple hundred industry participants. The company is not limiting its research to executives with the NTRA, Breeders’ Cup, or The Jockey Club.
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