Saturday, November 21, 2009

Higher Takeout Can Terminate California Racing

SARATOGA SPRINGS, NY, November 20, 2009--During the excitement of Breeders’ Cup preparations, a story appeared that had me outraged. I’ll deal with that when this is all over, my thinking went. Then, of course, I forgot.

But thanks to racing super-fan and Internet gadfly Andy Asaro, it was brought to my attention all over again in a recent e-mail. Now I’m angry all over again!

As everyone knows, California’s horse-racing industry is in the same boat as everyone else, struggling to compete with expanding casinos, other wagering alternatives while battling mounting horseplayer indifference.

And so Gov. Arnold Schwarzenegger thought it would be a good idea to sign a measure about 10 days in advance of Breeders’ Cup allowing racing organizations in the state to take a larger cut from wagers to update track facilities and offer bigger purses.

So, in the face of gloom, along comes doom in the form of higher takeout. Like Obama, Schwarzenegger didn’t inherit the fiscal mess that is the state of California, but he found a way to deal with the racing problem all right:

Help terminate it.

Here’s the kicker. You might expect as much from politicians, but Senate Bill 517 was backed by several racing organizations including the Los Angeles County Fair, Santa Anita Park and the Oak Tree Racing Association.

Mindless fools who simply don‘t understand the most basic laws of supply and demand. How can any of them justify being allowed to keep their jobs?

Indeed, must states including California can’t afford the time to invest in the future, to see how a reduction in takeout would generate handle growth. I get that. But raise the cost of a product whose market share is already shrinking?

And, please, I don’t want to hear about a decline in revenues. In the near term, yes, that‘s true. But a price reduction and additional low-cost wagering products are the only things that can save the racing as a wagering option in the long term.

The bill, penned by State Senator Dean Florez, would allow a thoroughbred racing association to increase the amount it deducts from horse-race wagering by an astounding five percent.

The legislation promises to provide groups with more spending flexibility for improvements and the purchase of new tracks and training facilities. Medical marijuana obviously has spread far beyond the borders of Venice Beach, and it must be pretty damn good.

According to the news release, this increase will allow for “ ‘winnings’ that are more competitive with those offered in other states.” You mean more than the tracks in other states that are going out of business, right? And by ‘winnings’ you mean taxing already overtaxed horseplayers. Where’s a Teabagger when you need one?

Here’s what they said: “Legislative analysts estimate that a 5% increase in the amount taken out of wagers would generate $200 million annually for the horse-racing industry.”

Florez also was quoted to say that the bill "is about self-reliance, reinvesting in California for growth, and protecting jobs for the future." Cue the orchestra.

I honestly don’t know why I’m surprised. Anyone who has paid the slightest attention to the health care debate and has heard the disinformation and lies being spread by both sides, especially opponents, wouldn’t be surprised by this, either.

It’s like the clever new Sarah Palin bumper sticker my daughter Linda forwarded to me on Thursday:
Here’s how Asaro assessed the state of California racing: “Guess what racing fans?” he begins. “It’s getting to that time of year when it’s all about the three year olds and the Derby picture.

“Too bad we still have Pro Ride at Santa Anita because it kind of messes things up for most horseplayers who normally love that time of year. How many brilliant three year olds will we never know about because they can’t handle the Pro Ride?

“Who’s this year’s Pioneerofthenile?

“It seems like just yesterday when maybe 5% of Horseplayers complained about the surface. Now it’s about 70%. I’m no David Axelrod or Carl Rove, but a 30% approval rating for synthetic surfaces in areas with good weather is pretty low.

“But then again maybe horseplayers are just stupid. Who cares about what they think anyway? They’re only customers, right? Stick with Pro Ride and raise the take 5% California. That’s a parlay for the ages!

“By the way, how did Pro Ride help racing with HOY? There should be no problem and we should have had a clear cut winner but now we’ll never know. That’s great, isn’t it?

“Other than the Zenyatta race (awesome performance), how good were the other main track races? Not so good in my book.

“Do you judge a surface by one good racing day, or by one good race a year? What about the entire season?

“Everyone can say what they want, but it’s hard to deny that California Racing has been let down by lack of competent leadership. 99.9% of people involved in California racing over the last several years are good people and don’t deserve this crap.

“The problem is that some of the people who have led us down this path still have influence. The CHRB isn’t strong enough or independent enough to put them in their place or call them out.

“Can you say Richard Shapiro? Why is he involved in anything (California Horse Racing Alliance)? If you’re gonna let him in the tracks after his bad decisions… why don’t you require him to bet 10k a day on the short fields and bad surfaces he helped create.

“How about a little poetic justice?”


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