What happens when you lower takeout?
Balmoral Pick 4 handle is up 84% since they lowered their takeout from 25% to 15%.
Want more evidence? At the beginning of the year, Tioga Downs horsemen allowed the track to lower the takeout, as low as the state would allow them. Vernon Downs voted NO. So far, Tioga Downs is up on the year when it comes to handle, while Vernon Downs is down 13%.
Lowering takeout does take time for the results to kick in, and Tioga is starting to notice a nice ramp up lately. Export handle was up over 20% in July.
It is key to keep takeout down, so existing players won't leave, but by dropping them, new players will be created as existing players last longer, come more often, and are more likely to introduce newbies to the game.
Speaking of evidence. What evidence is the CHRB using when it comes to their desire to increase takeout in California? I'd love to know. How could they possibly think that taxing their customers more on each bet will result in more revenue for them? What studies are they using? What empirical evidence do they have?
The reality is they "think" that they must be selling a necessity big ticket item. The fact is they are not. Gamblers only have so much money to lose collectively. Pay them off less, and they will come back less, or quit, or find a competing form of gambling. No matter how you slice it, up the takeout, and the result will be less revenue bottom line. And more importantly, negative growth when it comes to future horseplayers.
Even the guys at Bloodhorse are laughing at California's stupidity:
The last time California increased takeout, they "thought" it would be the answer to their short term woes. Empirical evidence proved otherwise.
New Anti-Gambling Laws Come To Canada
Whoa, does this means that office football and hockey pool participants and organizers risk a minimum sentence of five years in jail?
Well, at least she gambled legally
...but the way she acquired the funds to play with, well that is another story. I guess with her in jail, casino revenues are bound to drop a bit.