Quite a bit has been written about the dynamics of wagering. Historical evidence is abundant with the fact that reduced takeout, and hence higher payout, results in increased revenue.
One study of 24 racing jurisdictions done over 15 years shows conclusively that the profitability of track operations varies inversely with the takeout rate, because a lower takeout rate "stimulates a larger handle of which the track retains a fixed proportion".
That study concluded that at the average takeout rate of 15 per cent track revenues would be 60 per cent greater than if the take out were 20 per cent.
Other studies have shown that a decrease in the price of wagering tends to increase race track attendance and, therefore, "the total amount of dollars available for distribution for purses, etc"
H/T Pull The Pocket
Execs Analyze Racinos
Nick Eaves of Woodbine Entertainment said that racing created the problem it now faces.
"Racing relinquished control of its pari-mutuel product," he emphasized. "We abdicated our responsibility. Five percent of our customers make up 60 percent of our wagering. We have to regain control of our product distribution, product pricing, and to whom it's sold to make sure that the whales [major bettors] don't beach offshore."
Note to Eaves: If you don't want the whales to go offshore, you have to offer the same pricing they receive from offshore houses. But more importantly, if you want to create more whales, you need to decrease the criminal takeout rates immensely. Maybe you'll attract a few Betfair and online poker gamblers along the way...not really maybe. Definitely.
Racing economist and long-time major bettor Maury Wolff noted that the horseplayer today has "quite a few more options" than in past years. He stressed that the price of betting, or takeout, is a driving factor in determining where those wagers are placed.
"Pricing is everything," said Wolff. "You cannot consistently beat that 25 percent takeout on a Trifecta."
You got that right Maury.
New York task force weighs fate of old horses. Looking to prevent allowing retired horses from being slaughtered in Canada or Mexico.
Oregon Set To Welcome Two More ADWs
Blood doping harness driver Eric Ledford not welcomed back, but is back anyways. Bill Finley calls this a progressive attitude.
Ross Morton was the only announcer Finger Lakes knew
Older horses winning at Aqueduct
Drunken groom-to-be tries to run with horses during a race, in Australia:
The day before the wedding in Canada, guys generally go crazy by hanging with a naked women instead of naked horses.