What Happens When Takeout Rates Go Up?

ECONOMICS 101: TAKEOUT
HANA has a link to a bizarre takeout increase that occurred at a now defunct dog track.
The legislation notes that expected revenues will decrease, including amounts that go to the government, thanks to the takeout hike.

"The bill is anticipated to result in a decrease in General Fund revenue of $27,000 per year and a decrease in revenue of $23,000 per year to the municipalities that host pari-mutuel and off-track betting facilities. This revenue loss is due to an expected decrease in handle of 4% from the Plainfield Dog Track, the Bridgeport Dog Track, and Connecticut OTB. Total handle is anticipated to decrease as a result of an increased takeout rate (1% on WPS, and 3% on exactors) because there will be less money returned to bettors for re-wagering."

I found this gem from Barry Schwartz:

Found this interesting tidbit from 2002:

The THOROUGHBRED TIMES reported, "Total commingled handle at the three New York Racing Association racetracks has surpassed $2-billion so far this year, increasing by more than $200-million, or 10.4%, over the handle registered at the same time in 2001." The handle on NYRA races has reached $2,128B, with NYRA Chair Barry Schwartz attributing the surge "to the takeout reduction that has been in place since July 25, 2001," which has "returned an additional $46.4-million to bettors." Additionally, Schwartz credited the NYRA's new media efforts, including wireless technology initiatives, for the increased handle (THOROUGHBRED TIMES, 9/28/02).

NYRA went ahead with a 1% takeout increase across the board in April of this year. The increase was planned well in advance, so they had a chance to stop it. The result of the hike? The last meets at Belmont and Aqueduct are down about 17% in handle, a much higher than the industry average.



Test for Mircera (CERA) has been developed

ADR officials said CERA was developed by the Swiss research-focused healthcare company Roche to help patients with certain kidney diseases and anemia. Like other blood-doping agents, it boosts red cells in the blood so they deliver more oxygen to muscles.

The drug lasts longer and requires fewer injections than EPO. Human competitors have recently tested positive for CERA, and it is widely believed the drug is being used as a performance-enhancer in equine sports, officials said.

I wonder if this means some high percentage trainers come back down to earth. Especially high percentage absentee trainers. They might wind up having to actually train horses again.

No time line is given on when testing for CERA will commence, or in what jurisdictions.



Chantal Sutherland to represent Canada in Hong Kong's Cathay Pacific International Jockeys’ Championship on December 9th.


Group of horse owners trying to keep harness racing alive in Quebec


CTHS Winter Mixed Sale see nice increase in gross prices
But before getting too excited, the average horse went for $5,364 compared to an embarrassing $3296 last year. How much does it cost to feed a horse a year?
And if you take out Kentucky Bear, who sold for $100,000, the average would barely be $4,500.

And lets not forget, this sales is totally propped up by sales vouchers which are accumulated by winning connections throughout the year. The actual new money pumped into the sales is laughable.


Last weekend, Woodbine informed the parking staff that they will be outsourcing the parking lot and that they will no longer have jobs comes early January.

Employees, many who have been around for over 7 or 8 years (some over 25 years), were given a severance check, and told their benefits, including their pensions would be toast.

They were also told that there might be an outside shot that the new company in charge of parking MIGHT hire them.

More cost cutting by Woodbine. Trimming jobs (so that executive bonuses can be intact?). Last year, Woodbine got rid of all talking heads on their HPITV channel.

Woodbine Entertainment continues to be an ineptly run old boys network, completely out of touch with their customer base.