You’ve got to be a part of the problem before you are asked to help solve it and that’s a coincidence I’ve been able to avoid for nearly a half dozen years now. Complicity is normally a requirement when failing businesses invite criticism. By asking people co-opted in whatever you’re analyzing to engage in the process of improving it, you automatically reduce the possibility of change and increase the continuance of policy.
New courses are hard to identify by people who’ve set the established path. On the other hand, sooner or later something other than what’s been done seems imperative. Yet, two industries caught in similar dilemmas are approaching their plight differently.
Tomorrow in New York, the Fragrance Foundation, a loosely-held body of leading companies in the scent-selling business, will gather board members to hear experts from the burgeoning wine industry explain how they managed to fend off ideological enemies, fit in with a changing trend that wasn’t especially friendly to their interests and raise prices and sales despite a faltering economy.
It’s been several decades since business has grown more than the cost of living, but basically the beauty business was believed to be recession-proof. Sound familiar? Gambling, too, has usually picked up when times are tough and risk-takers have nothing to lose when pursuing a jackpot, but this hasn’t been the case since last fall.
There’s a prevailing opinion that something’s drastically amiss in the Pink Jungle with how consumers are thinking about the product. Young consumers no longer view perfume and cologne in terms of a mandatory personal statement that completes a wardrobe or defines personality. The concept of scent as aphrodisiac is as silly and dated as a middle-aged man with a pony tail.
After Calvin Klein took the first step to de-mystify the category with a unisex fragrance presented in a plain cardboard box and simple glass flask, prices plummeted and distribution expanded to areas previously considered unsuitable. In the wake of the brand’s consequences, retailers replaced manufacturers in the driver’s seat, advertising money was used to promote pricing instead of image and, in effect, the dream was destroyed.
In a parallel universe, thoroughbred racing expanded its season, made betting on horses a pastime the customer could engage everywhere and thumbed its nose at the $2 bettor. It was déjà vu all over – two products, that nobody needed but people found desirable, falling on hard times simultaneously. Regardless, a day at the track seems no longer of interest to thrill seekers while a spray of eau de toilette appeals somewhat to style-conscious shoppers. Moreover, the market for fragrances still seems susceptible to marketing; the market for horse racing doesn’t.
Nevertheless, today (on Yom Kippur, the Day of Atonement) and tomorrow, the NTRA will pretend there are ways short of starting all over that can urge people back to the grandstands. With a nod to its first purpose for existing, horse racing’s coalition of racecourses, owners, breeders, trainers and affiliated associations will invite five prominent participants from the sport to join six NTRA officials to present formal presentations.
Unlike last year, when the NTRA compromised the reputation of popular bloggers’ objectivity by luring them into the act, there’ll be no input from anyone remotely interested in joining the insiders or by anyone skilled in the marketing profession. Already, the members of HANA have their dander up. Who on the Red Rocks Resort podium, where the speakers will sit, has been formally educated in the discipline, created a brand from scratch, built an audience or left a lasting impression?
Although Peter Land, the Breeders’ Cup’s heralded chief marketing officer, will not participate owing to his resignation in late August, John Della Volpe, a Harvard Web guru, will be the Summit’s moderator. For those unfamiliar with Della Volpe, here’s what he wrote on his own Web site about himself: “SocialSphere (Della Volpe’s company) has helped to change the face of the ‘Sport of Kings” and lay a foundation for a brand new fan base.” He sounds just like the guy the sport needed – not.
Granted, the sport has become amazingly interactive in recent years. In particular, the New York Racing Association has close to a dozen sites that computer users can access for information and respond to. Nevertheless, there are drawbacks to this progress, the least of which being that some people mistake the Internet for advertising. It isn’t. As a matter of fact, to date, it hasn’t increased attendance one iota.
By the way, speaking of Land, I’d like to take a peek at the resume that he wrote to earn his new post at PepsiCo – 1. Oversaw the marketing activities of North America’s fastest declining sport; 2. Managed to survive the frustrations of interference, second-guessing and procrastination of bosses and colleagues; 3. Was a key member of the team that gave us two days of Breeders’ Cup races and back-to-back years of synthetic track Santa Anita.
Cheap shots aside, Land’s exit interview would provide deeper insight than the NTRA's Marketing Summit into how horse racing should market itself. But from one man who owes all that he has to the profession, the sport shouldn’t spend one penny more in trying to bring people back until it develops features and benefits that some stranger wants. Real growth will only result from the recruitment of new customers and, for myriad reasons, despite all the Internet flak, that hasn’t happened.
No amount of advertising, sales promotion or public relations will convince disinterested people to like horse racing. The NTRA is hosting a confab where some of its own will analyze the problems that exist and offer ways on how to correct them. This is like people with poor manners playing host to a hobo in the hope that they'll change him.


28 Sep 2009 at 01:57 am | #
Great commentary, Vic.
These bozos don’t have a clue how to market
the game.
Except for “destination” meets, the fans are NEVER coming back to the grandstands.
We need a central authority (think Kenesaw Mountain Landis or Pete Rozelle) who realizes we need to significantly lower the take, standardize rules and regulations, and promote handicapping as a GAMBLING game of SKILL.
No other sport is so well suited to 21st century technology and, yet, the current powers that be refuse to embace it.
I’ll lay 100/1, there were no PLAYERS invited to this summit. We are just the economic engine that drives the whole industry.
Shame on the NTRA.
28 Sep 2009 at 03:40 am | #
I feel sorry for marketers of horse racing. It is a gambling game, yet marketers can’t market from that angle because the cost of the game (the takeout is so ridiculously high). It would be like marketing a $1500 refrigerator on the same flier page that a fridge of equal quality but a different name sells for less than half.
No, they are told by their higher ups that by almost totally ignoring the gambling aspect, that there are ways to get new customers.
Horse racing is gambling. How many new bettors were created thanks to Rachel Alexandra? Probably less than a handful. If her story couldn’t create new gamblers, than nothing outside of reduced takeout will.
What the game needs to do is advertise winning horseplayers? Is the NTRA going to advise to advertise the rebate shop winners? No chance. Beyond those who get rebates, it is next to impossible to beat horse racing substantially in the long run thanks to ridiculously high takeouts. This fact prevents growth.
The fact that players don’t last also prevents growth. The less a player gambles, the less time they handicap and watch races, the less likely they are to expose friends, family and coworkers to the track.
Also, what would motivate ANYONE to learn the game from scratch (and as everyone here knows, the art of handicapping is something that can’t be learned overnight) when there are NO WINNERS to be seen? Pretty majestic horses that run fast just doesn’t do the trick.
28 Sep 2009 at 04:35 am | #
Cangamble: Gosh, you are starting to mimic my commentary: that it is all about gambling. Good man.
You have been commenting in abundance at this site of late, your subject takeout. Look, you, I, and every serious gambler would benefit from lower takeout; however, takeout rates have nothing to do with why racing is declining in popularity; how can it, when you even agree that the vast majority of bettors do not understand the pari-mutuel system and careless? Thus, the casual bettor and novice are not staying away from racing because of takeout rates; it is only the hard core gamblers that are grumbling, yet they (me included) continue to gamble on the ponies.
-------
Why isn’t the NTRA summit being held in Lexington instead of Las Vegas? Seems like party time to me. I recall when Tim Smith was the commissioner of NTRA; every gathering of any sort was held in Las Vegas or a 5-star resort/spa where Tim could see the first tee and/or putting green from his room. Yup, Tim holds the number one spot in the Classic Statement Hall of Fame when he uttered “racing is a great spectator sport, with the option to gamble”; number two is the former speaker of the house in Maryland, who said “all the horseplayers in Maryland are dead”; number three is a comment from a former Magna executive who said “how can Ping-Pong balls be more popular that horse racing”.
And the beat goes on ....
28 Sep 2009 at 04:46 am | #
Dear Cangamble: By now you realize that I’m a proponent of publicizing “pretty majestic horses that run fast.” And that I believe the social component that a good racecourse provides is at least one-third of the sport’s attraction. But I like your idea of featuring people who win money at the races in ads.
Education in the game is the most over-rated requirement for being a horseplayer, in my opinion. I’ve been with too many winners who can’t tell a furlong from a filly and by force-feeding tutorials on newcomers the sport merely calls attention to one of the reasons the uninitiated stay away.
The NTRA should promote the fact that anyone can win, that the game is easy and fun, and the rewards are great - and, yes, that means that I favor lowering the takeout.
Yet, that alone won’t get it done. Before more money is thrown at the problem of poor attendance, horse racing needs to get its house in order and the presentation must change.
28 Sep 2009 at 04:53 am | #
Einstein said it best—
“We can’t solve problems by using the same kind of thinking we used when we created them.”
28 Sep 2009 at 04:54 am | #
WmCorrow, I’ve replied to you a few times, yet you are ignoring my answers or not reading them.
Gamblers don’t have to be cognizant of takeout rates in any form of gambling for takeout rates to affect their action or desire to play or come back.
If takeout rates were 50%, players would last even less than they do today, and they wouldn’t even give the game a spin around the block eventually.
Players gamble based on perceived reward and their bankroll. If they go home with less money, they are less likely to care or come back.
I don’t understand why you willfully refuse the fact that takeout affects everyone even if they know it or not.
Most slots players don’t understand house edge or care about house edge in slots, but slots operators know that if they raise the take any higher from 10% or so, they wind up getting less net revenue. Why not raise the take to 20%, that would mean they only need half the money bet on slots to make the same money? They know they will wind up with less than half the money bet in total.
And it isn’t because of slots player’s knowledge of house take. It is because they won’t last long enough to put slots on their priority list anymore.
Personally, I will benefit from a lower takeout but not how you think I will. I get nice rebates on most of my action, so a takeout reduction will only cause an equal rebate reduction. But I and the industry will benefit from lower takeouts because other players will last longer, and they will be likelier to spend more time handicapping, devoting more of their gambling money to horse racing, and will also get friends, family and coworkers exposed to the game in many instances.
28 Sep 2009 at 05:20 am | #
Anyone interested in seeing the old arguments about why takeout doesn’t matter be totally refuted please check out my latest post on my blog:
http://cangamble.blogspot.com/2009/09/why-not-increase-takeout-to-40.html
I’m not flogging my blog here, but these old takeout doesn’t matter arguments when it comes to growth in the industry are becoming mind boggling and tedious.
28 Sep 2009 at 07:05 am | #
Pingback
http://blog.horseplayersassociation.org/2009/09/marketing-summit-you-can-beat-race-but.html
Thanks for stimulating this discussion Mr. Zast.
28 Sep 2009 at 10:57 am | #
I would like to have commented on your Facebook entry on my own page, but when I tried, I was told I was not allowed to comment on my own page.
You might enjoy our photo album; you will see at least one we like in common on both my wall and that of Racing International.
28 Sep 2009 at 11:33 am | #
One of the reasons why so many racetrack managers don’t know how to market the game is very simple—they don’t understand what makes their own customers tick.
28 Sep 2009 at 11:36 am | #
And Vic, I have to disagree with your comment, “The sport has become amazingly interactive in recent years.”
It’s always been interactive. It was interactive before the word “interactive” was even coined.
Horse racing is the original “interactive” sport.
28 Sep 2009 at 01:07 pm | #
Another one leaving the sinking ship is Alan Marzelli, retiring as CEO of the Jockey Club. And to add to Tim Smith’s resume, there’s the story of the failed bid for the NY racing franchise by Empire Racing.
Yes, takeout matters. If bettors don’t go home with at least some money, they don’t come back. But marketing matters too. Some 10,000 extra fans turned out to see Rachel Alexandra in the Woodward at Saratoga.
The solutions aren’t that hard: lower takeout, fewer racing days, night racing during the week, daytimes on weekends, modern marketing, a single computer platform, taking the breeders out of the driver’s seat.
28 Sep 2009 at 01:39 pm | #
Those hand-picked racing “leaders” will travel in style then preach to the choir and defend their fiefdoms however delinquent, irrelevant and devoid of authority they may be.
They will play golf, wine and dine extremely well, schmooze, defend their jobs, big salaries, fancy perks and junkets without changing a damn thing because power, control and perks are most important.
Will lame and devaluated horses on drugs continue to crash daily after their Las Vegas junket? Yes. Will those grand poobahs keep on keeping on in luxury resorts? Yes. Is a single one of them giving a damn about horses and their welfare or is it all about them? It will be interesting to see if the word “horses” is even be mentioned once during that meeting and if equine welfare and safety will be covered though it should be top priority in order to effectively market horse racing.
Will these grand poobahs be willing and able to draw a direct line between racehorse welfare, our increasingly urban society with its higher values concerning animal welfare and successful marketing of horse racing?
Transparency, integrity, welfare, safety achieved with banning drugs up to a race, need to be front and center in order to improve and market racing. Despite what Alex Waldrop said following Eight Belles’s death, the welfare of our race horses is NOT Priority #1. Action speaks louder than words Mr. Waldrop & All.
Instead of going to Vegas in style, this group should have taken a bus --a luxury one of course-- trip in any direction out of Lexington. They should have stopped in small and big towns and interviewed people to come face to face with reality, take notes then reform horse racing as it should be before wandering about how to market it.
28 Sep 2009 at 04:28 pm | #
Wow. Someone is saying the things which I have been thinking for a decade. Racing, as a whole, doesn’t see the sunshine. The emphasis on betting, the race to racinos, the reliance upon drugs, and a long day spent standing in lines at the track, all have portended doom for a long time.
It’s the horse, stupid.
Once, people knew horses, as they used horses. Now, they are considered a companion. The horses don’t care. Thank the Lord that they will not curl up on your lap. They do not purr. They run.
Now, in these times, just keep them sound (use whatever pharmaceutical that it requires to appear sound), and mocking Al Davis of the Raiders, just win, baby. Or, is it “Go Baby Go”, the phrase escapes memory, as it was truly not worthy of memory. So, to win, drug them. To get fans, give them gambling ease. Pull a lever, over and over, at a racetrack. Racing is so dominated by gambling interests that it is doomed. Gambling is now coast to coast, riverboats and casinos everywhere, but that is not, and has never been, the point of racing horses. The NTRA wants to sell a spectacle, with celebrities, and Hollywood is so close to Santa Anita. We should have an inflatable race track, just like at the children’s birthday centers, and Paris Hilton, too!
The horse will give it all, exhaust itself, and still try to win. Who knows why, perhaps to be ahead of its peers, an extension of its evolution. This is what makes fans out of bettors. They have raced on dirt, and on the grass, but not on shredded tennis shoes: until now.
It is the horse, stupid.
28 Sep 2009 at 04:40 pm | #
My point was obscure. of course, racing depends upon betting, and bettors.
Promoting the horse and its efforts will bring to the track all the people who care about the animal. They will bet. Promoting betting, without the show girls, will bring no one to the races.
The sport is too intricate in its betting schemes to attract new people. The action is slow because the horses require time to be ready to race.
So, promote the horse and its efforts. This is unique in these times. That unique relation between man and horse is the mystique. That mystique is the sizzle to sell. Anyone can buy a steak, and anyone can bet somewhere. Only at the racetrack can you see an incredible athlete give everything in order to win.
It is, still, the horse.
28 Sep 2009 at 04:49 pm | #
Michael, the days of seduction of the horse over the public is long gone. There is only one way which will help the bottom line and that is to reduce the cost of betting through a takeout reduction.
Rachel Alexandra was the best thing to happen to horse racing in years, sure she intrigued some fans, but in the end, betting is down 10%, and you can blame the economy, but betting went nowhere during the boon years.
The game fails to compete to attract new gamblers. This is the information age, and when people get interested enough to look something up, they wind up with no reason to become a horse racing bettor.
28 Sep 2009 at 05:23 pm | #
Some good points, as already made by you, Cangamble; your last statement gets us together on this reason. “The game fails to attract new gamblers.”
Gambling does require more skill in horseracing than in any other of the varied formats in which gamling is offerred. That is why a skilled person can do very well at the window. Reducing the takeout will free up more money, and this should be done, to give more to the bettor, and this may initially result in a larger handle. Yet, without new fans, and thus more people, even a greater takeout would lead us right back to where we are today.
It is a tough nut to crack; it is still, the horse which makes the sport. While Rachel Alexandra is very popular, the universality which greeted Secretariat or Affirmed has been missing. We have already, as a sport, been relegated to the obscure. My assumption has been that people cannot relate to a non-cuddly animal, and that learning how to bet a trifecta box, or to wheel the favorite, is too complicated for the xbox/wi mentality extant in our society.
Racing is not accessible, despite all the claim to interactivity made above.
People respond to emotion; sell the emotion. Not the emotion which makes me tear up tickets, but the emotion evident in the longshot winner’s face after it has stared down three rivals for a quarter mile, and won, despite the fact that those other horses were probably faster.
Still, Cangamble, the observation that racing went nowhere in the boom years is the key dilemma presented in your observations. That should not have happened, and that it did indeed happen is dismal.
Thus my conclusion: sell the sizzle. It is still the horse, the rest (larger takeout, etc.) are details compared to the decrease in fan base. A larger takeout is needed; a larger fanbase is mandatory.
28 Sep 2009 at 05:35 pm | #
That is why a skilled person can do very well at the window.
**********************
Not at today’s takeout rates. A skilled person can win with a nice rebate, but horse racing doesn’t want to tell anyone about that.
Reducing the takeout will free up more money, and this should be done, to give more to the bettor, and this may initially result in a larger handle. Yet, without new fans, and thus more people, even a greater takeout would lead us right back to where we are today.
******************************
Most players will have more money, only temporarily in most cases, but it is that extra time they spend handicapping and watching races that may get friends, family and coworkers intrigued or at least exposed to horse racing....and this will eventually create new fans.
Selling the sizzle just won’t work. Horse racing has been trying to do that for years, and they have lost sight that their customers are bettors not those who fill some of the stands during Equestrian events.
28 Sep 2009 at 05:55 pm | #
You are correct, horse racing has been trying that for years. Where are the ads in primetime? Nonexistent. Calvin Klein did sell stink in a bottle--in primetime.
Customers are bettors, and the point has been made that they are all dead, at least in Maryland. Bettors go to casinos; spending time handicapping, and watching races, is pretty solitary, unless you are selling a sheet. I do agree that reducing takeout is key, but the guys I know who bet are more interested in the spread. Where they bet, there is no takeout. They love March Madness.
The sizzle is too hard to sell. The betting is too hard to learn. The industry is too entrenched, and controlled by those who are too involved in the status quo. The same industry wants to keep all the money. The past couple of years have had far too many people who have received suspensions. The created perception for bettors is to stay away, in other games.
I just don’t know. But, the thirty head in my barn want to win.
28 Sep 2009 at 06:28 pm | #
One of the things holding The Industry down is paying for Past performances.
Do you think some young guy at the Poker table is going to pay $6 for a DRF that looks like Chinese to him?
The Horseracing industry has to either buy the DRF or Brisnet or do there own Past performances.This will help bring in the younger crowd and allow the regular bettor to spend that money on the Horses.
The day of the Horseplayer paying for PPs needs to stop.
Free PPs.
Lower Takeout.
Less racing/Bigger fields/Quality racing.
Then you Advertise.
29 Sep 2009 at 11:28 am | #
Horseracing is still marketed as if it has a monopoly on legal gambling, where the need for a cohesive voice and long term strategic planning was not required to be successful. A racetrack would be built and people would come and bet!
The industry has generally been run by Horsemen who have viewed wagering as a necessary evil. They have little understanding of the gambling component and thus little understanding for their current and potential customers. In some cases racetrack board members are prohibited from wagering.
Those who remain in the Horseplayer choir believe that horserace wagering offers unique components that make it the most exciting, exhilarating and challenging form of gambling. The industry will continue to decline until racetrack operators can identify and embrace their customer, the HORSEPLAYER, and conclude that Horseracing must be marketed as a ‘GAME ABOUT GAMBLING’ and not a Sport of Kings!
Horseracing’s Day of Atonement is long overdue.....
EP
30 Sep 2009 at 03:33 am | #
I still believe this. When horse racing was in its heyday, most of the fans and almost all of the participants remembered a time when horses were a part of everyday life in America. After that time passed, and cars had replaced horses in our memories of everyday life, NASCAR came to life and horse racing began its decline in popularity.
Even today, the place of the horse in everyday life drives the sport in the form of jockeys who come from cultures where the horse was a routine part of their lives when and where they grew up.
Not that this is an answer to the issues at hand; it isn’t. It’s just an observation.
I do think that casinos give players more personal attention than tracks, and that it would help if players at tracks were somehow made to feel more welcome with some personal attention.
30 Sep 2009 at 04:30 am | #
Dick Downey makes the point clearly; horses were used in daily life in the past, and a general knowledge of horses was widespread. The public attended races because they could relate directly to the animal. We don’t have data to support this, but that is a very logical conclusion.
While at the track, they bet, but that is not why they attended, in general. In the comments above, we see the horseplayers’ perspectives concerning the internal dynamics of the betting game. This game is essential, it pays the purses and drives the sport, and the dynamics of money flowing to the varied entities are holding back racing.
Yet, the fanbase is shrinking as the distance from the horse is growing. Mr. Downey correctly states that his observation is not an answer to the above issues. It is an answer to the overall problem.
It is the horse which attracts and keeps us at the track. The dynamics of betting, and the money, will not attract new players. Attendance is shrinking while betting promotions are increasing.
That said, raising purses by controlling where the money goes is essential; the gamblers do spend the money which goes to purses. Purses pay the owners, and the owners don’t do this just for grins and giggles.
30 Sep 2009 at 04:43 am | #
Just a short aphorism:
I gamble because I go to the track. I don’t go to the track to gamble.
30 Sep 2009 at 05:15 am | #
Michael, good luck to that. There have been real studies that prove that doubling purses only increases handle by 6%. Conversely, by reducing takeout from 20% to 13%, handle doubles.
Betting promotions are increasing, but they aren’t enough, in many instances they are piddly in comparison with competitive gambling venues. Bettors are not attracted by the horse anymore. Bettors are attracted to the possibility of winning. Just like owners, they don’t do it for the giggles.
It is betting that drives the sport, not the track and not horses.
Keep up forgetting that horse racing is driven by the bettor, and the game will continue to die. That is a fact.
Isn’t it funny that the fan base is growing in poker and sports betting. Do you think it is magic? In England, horse racing is huge, thanks to Betfair. Take Betfair away, and it would be as dead as it is in North America.
And I’m speaking from a pretty good perspective. I used to own horses, I know all about that side of the industry. I have a close family member who is a trainer. And I know many large gamblers who laugh at the high takeouts and either bet offshore, or at onshore places that offer large rebates.
Keep thinking that it is the horse that attracts the bettor, and this industry will continue its swirl down the toilet.
30 Sep 2009 at 05:26 am | #
It would be great to lower takeout significantly but what people don’t take into account is all the simulcasting. If NYRA lowers takeout to 10% and someone wins, is that money then bet back at a NYRA track? Maybe, maybe not. If I hit a $1,000 late pick 4 at NYRA on the west coast, good chance I’m betting that money back that day- but at a SoCal track.
Until there is a true governing body with one tote system, one ADW, and one set of Rules, lowering takeout will never even be seriously considered.
30 Sep 2009 at 05:34 am | #
Jason, I agree 100%. It isn’t beneficial to any one track to lower takeout significantly at this time because like what happened when Ellis did their Pick 4, the extra money won by those who hit it, wasn’t necessarily bet back at Ellis.
If Magna would have gone 12% at all their tracks when things were going OK, instead of planting trees, it would have attracted bettors to Magna tracks, and it would have forced other competing tracks to do the same.
Woodbine, who virtually have a monopoly on Canadians could do it, but they are just too old school and suffer from Willmotitis. Until the old guard leaves there, there will be no real growth at Woodbine.
Racing is unlikely to become unified because of state laws, track execs who don’t understand bettors, and horsemen groups who really don’t understand bettors.
The only bright spot now, and the near future is rebating. And if that gets more costly, the game might as well be dead.
05 Oct 2009 at 11:52 pm | #
Alex Waldrop, NTRA CEO, asked after the summit:
How would you answer these fundamental questions? Are we selling the right product to the right people? Why have most track experiments with lower takeout failed to generate new handle? Do you pay attention to takeout when you play? Let me hear from you.
============================================
My comments fit there and here:
Dennis (10/01/2009 9:04 PM)
Gambling of any kind involves price; that is odds. And; equally; integrity. Horse racing has severe problems in both areas. They refuse to admit it. They refuse to accept the path that must be taken to correct it. So, decade after decade, they have meetings and discussions that always lead to the same results.
Nothing is done. More events involving bobble head dolls, 50 cent hotdogs and $1 beer. The class of gambler attracted by this offering bets very little and does not return very often. They play, they do not think or invest. Your thinking pros and semi-pros always consider price.
The direct affect of take/breakage on pools is always smaller odds. Small odds means one of two things to your real player. Wagering only when you are provided with the rare case of value. Or wagering with an entity that provides a percentage of return that offsets playing lower odds due to take/breakage. Neither of which increases churn. Your $2 bettor could care less.
Consider that, with less take/NO BREAKAGE, odds increase which in turn increases perceived value opportunities which increases wagers. More opportunity equals more churn. I also believe this provides tracks/ADWs a chance to compete with the offshore’s rebates.
Experiments, and that is all they were, in this area have been isolated, short lived and hidden. If you are going to do this, make the numbers real, make everyone do it, and advertise the hell out if it well before starting it. I played seriously for more than 30 years and quit after the pic-6 scandal when only lip service was paid to correcting the ancient system that is racing’s wagering system.
My opinion, racing has to die before it will make any real attempts to adapt. They must choose survival or extinction. $2 bettors will not replace serious players. And your serious players are dieing or wagering somewhere else that allows them to survive as well. A poorly publicized trial at some cheap bottom claimer track for two weeks with only WPS wagers reduced 1 or 2 points will NOT prove anything but what the tracks want to believe now, that less take/no breakage will not increase churn. They have a death wish and it is coming true for them.
I would return to racing if I saw cheating trully punished rather than overlooked/encouraged, a modern flow established for wagering info that instantly updates all outlets as each wager is placed (think wall street) and my own areas, WPS reduced to 10% with no breakage. That is my opinion.
For now, I continue to play poker and a few handicapping contests where I figure to have an edge. I see no value in racing as it is today, for anyone, tracks included…
23 Sep 2010 at 09:07 pm | #
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