Ontario HBPA and Fort Erie EDTC To Buy Fort Erie?

From The HBPA Site
February 13, 2009

The H.B.P.A. of Ontario, the Town of Fort Erie, and the EDTC will be offering a non-refundable down payment for the purchase of Fort Erie racetrack from Nordic Gaming.

A brief outline of the offer is as follows:

The above named parties will make a non-refundable deposit for the purchase of Fort Erie Racetrack in the amount of $2,250,000.

In exchange, Nordic Gaming must agree to run 78 days of live horse racing in 2009 commencing the first Saturday in May. They must also allow the parties involved till August of 2009 to review with the Province of Ontario the formation of a not-for-profit corporation. This will allow all concerned to perform due diligence to secure a permanent solution for Fort Erie.

Several prior meetings with Nordic Gaming made them aware this offer could be forthcoming. We were awaiting approval from the Province to use EDTC funds.

This information is for horsemen's use only, please do not make it public as there is a long way to go yet.

We anticipate a timely response from Nordic Gaming. More details will follow.

Sue Leslie, President
HBPA of Ontario
**************************************************
No offense to Sue Leslie, but the HBPA site doesn't require a password to view, so this is now public information. And besides, Jen's Thoroughblog and there is an article in The Thoroughbred Times by Perry Lefko on the subject.

Obviously, this isn't a done deal yet. Nordic still has to say yes, and the government has to approve using the use of the left over $1.5 million that the EDTC has in its coffers, from the $2 million handed over to them last year to do a feasibility study on that $300 million expansion project (that made no sense from the get go).

The $2.25 million falls around a million short of what Nordic states they need to break even. Though there is very good reason to believe that Nordic doesn't lose as much as they state they are losing.

Also, there is no mention of an actual price on Fort Erie. I highly doubt the $35 million first offered, will ever happen. The business appears to lose money, slots numbers are still on a slow decline, and with a Buffalo casino around the corner, they could take another hit. And the land isn't worth $100,000 an acre. Not even close. Realistically, a fair price for the track is somewhere in the $7-$15 million area, and that is only if the people buying the track are confident that they can grow the business, and at least make it break even.

I do commend James Thibert for his creativity, and initiating a deal in the first place (though his buying price was ridiculous), and a lot of praise must go out to Sue Leslie for persevering on this issue. However, even if this deal does happen, I really don't like the idea of the horsemen running the track, especially if this tracks viability and future is still dependent on the track making money.

I'll give a couple of examples. Horsemen believe that the higher the track takeout, the more money they get for purses. This is totally wrong, as I've explained many times on this blog. Worse, they think a takeout reduction means less money. And again, that is completely wrong as well.

Secondly, they think that the more race dates they have, the better off they are. Again, this is wrong. The purses need to be enough so that owners don't have to win three races in a year just to break even. Minimum purses need to be $10,000, and racing dates need to be set with that in mind.



What can Fort Erie do to get to break even?

They tried Friday racing and a 3 o clock post time a while back, and neither worked out. But things have changed since then. For a track like Fort Erie to get handle, they need to race when there is little thoroughbred competition.

Management does know that from 4:40-5:30 PM on Monday and Tuesday that their biggest handle happens. Outside of putting up lights (which wouldn't be a bad idea if they can get it to happen without disturbing the harness people too much), they should start the first race those two days at 1:30 or even 2:00 and run until 6:00 or 6:30.

On Sundays, handle sucks big time, but they need Sundays to attract new business and to allow for owners to come to the track on the weekend to watch their horses. There is way too much competition from A tracks on Sunday though. They should start racing at 12:15 or 12:30 so they can get the bettor's first dollars.

Many players go to the track with a certain bankroll, and they tend to bet heavier to begin with (and many don't last passed the third or fourth race). The same is true of bettor's betting through the internet. You want the weekend players to possibly handicap Fort Erie because it is the first race to go off, and to get their day started betting Fort Erie.


Also, Fort Erie could easily set up their own ADW (internet betting hub). I know how they can do it with no set up cost. Instead of sharing with Woodbine's HPI, they can directly market to their home market (400,000 residents in the Niagara region). There is very little, if any, marketing to get players to open up online accounts that goes on in the Niagara region today. I think if Fort Erie gets an ADW they can increase profits by at least $500,000 a year.

They also can draw in Americans with sports betting. Parimutuel sports betting would work, as long as the takeout is equal to the commission charged by bookies. Lots of Americans may venture over the border to play the Bills and Sabres.

I have quite a few more ideas as well. But I'll wait for the deal to happen and my phone to ring before I give out any more advice:)


Nordic's owner is looking to acquire a 5% ownership interest in Israel's biggest bank. And his company just had a major gas discovery. I'm sure, that he wouldn't mind getting rid of Fort Erie. Now if his ego would just get out of the way, he could put a realistic price tag on it.



Epilogue on Track Ratings by HANA



Committee Transcripts: Standing Committee on Government Agencies - February 10, 2009 - Agency review: Ontario Racing Commission



Great resource again this year thanks on Equidaily. The lifetime past performance charts of all the Kentucky Derby contenders. For free! 94 pages, yikes.

HANA'S Number One Rated Track? Hint: It Isn't Woodbine

Keeneland is number one out of the 65 rated tracks. Their brass took the results pretty seriously too. Keeneland President and CEO Nick Nicholson seems very pleased that his track was rated on top:

Nice field sizes, but more importantly, the lowest takeouts in North America pushed Keeneland to the top. To put things in perspective, a triactor at Keeneland that pays $810 for a deuce would pay $717 at Woodbine, if the betting on each were proportionally the same.

If you are a horseplayer who wants the biggest bang for your buck, please join HANA, it is free.


Fort Erie Update
Tim Hudak was adamant that slots should go if Fort Erie doesn't have live races.
No slots and no racing at Fort Erie would make the racetrack almost worthless. The land can't be worth that much if Woodbine sold it for $10 and the transfer of a $3 million debt just over 10 years ago.
'The Ontario Racing Commission (ORC) appeared before the Standing Committee on Government Agencies Tuesday.' I watched most of it on TV (channel 67 on Cogeco). Rod Seiling seemed to be optimistic that racing would happen this year at the Fort. Only he knows what he knows.
There is a lot of quiet optimism happening right now. Is a deal imminent? Will Fort Erie be saved?

Also, OHRIA will probably be getting more power soon and take away some of the pressure from the ORC. But if they think that they can go ahead and campaign against what they call "illegal offshore betting," good luck to them.
OHRIA, WEG, and every other racing entity in Canada had better learn that their days of monopoly are over. It is time they compete for the bettor's action.


Andrew Beyer Gives Maryland Hell For Raising Takeouts

'Executive 1: "The economy is killing us. Customers are deserting us. Our business is terrible. What are we going to do?"

Executive 2: "I've got an idea. Let's raise our prices!"

Executive 1: "Raise prices! Brilliant!.....

....Whenever I visit tracks in other countries, I observe the relationship between the takeout and the health of the sport. Gambling-mad Hong Kong and Australia produce per-capita wagering that dwarfs the United States. Their takeout rates are around 16 to 17 percent, and in both places I met pros who bet astronomical sums and make a lucrative livelihood beating the game by a couple of percentage points. By contrast, when I visited Argentina last spring, I did not hear of a professional horseplayer in a country with a rich horse tradition. The takeout rate of 28 percent made serious betting impossible. Somewhere between 17 and 28 percent is a crucial tipping point.'

New York Breeding Program Finally Paying Dividends
Hey, don't they have state bred claiming races? How come Ontario doesn't?



Maryland Rejects Magna Entertainment's Slot Proposal
H/T The Paulick Report


Speaking of Magna and Frank Stronach, this is one of the funniest pieces having to do with horse racing that I've ever read:
Economy Hits Magna: Stronach Announces Jockey Layoffs

'Magna CEO Frank Stronach announced in a teleconference held yesterday that the latest cost cutting measure by his beleaguered racetracks and company will include the layoffs of jockeys.

“The economy has adversely affected out bottom line at Magna, and we are forced to make some tough decisions, including the layoffs of all jockeys at our tracks as of Feb. 18,” Stronach said.'

Read the rest:)

At Woodbine, The Monkeys Run The Zoo

Nick Eaves, President of Woodbine Entertainment, must be Willmot's puppet
At a recent gaming conference held in Reno, Nevada, Bill Eadington, a prominent gaming authority, stated that racing is in trouble, and that current models are not the way to go. Nick Eaves said "I'm not sure there is a problem. I think we're overstating the problem. The discussions should be about solutions and realities......
between 1990 and 1998, pari-mutuel wagering at Woodbine went from $930 million to $770. "In 2008, it is at $870 million."
**********************************************************
No problem? It looks like Woodbine has developed an aim low and always be satisfied philosophy. Lets look at gambling in Canada and compare it to parimutuel wagering at Woodbine: $13.6 billion in gambling money was lost by Canadians in 2007. In 1992, only $2.7 billion was lost.

And lets not also forget the fact that anyone in most regions in Canada can now bet through HPI. And thanks to their collusive contracts with most ADWs in the US, Woodbine has held a near monopoly on Canadian customers who want to wager on North American race tracks.

Of course, I stated "near" monopoly. Customer friendly sites that offer much lower rakes and takeouts have come along to spoil things for Woodbine and their culture of entitlement (a term that pops up in the Sadinsky Report).

Woodbine has failed to compete for new business, and has slowly lost their regular customers. One of the reasons their betting has somewhat stabilized is because of the secret deals they offer their biggest customers. All that does is increase the handle and keeps that customer playing at Woodbine. It does not create new business.


More from Eaves: “You have to invest in your product, too, and not only in the brick and mortar sense of the word, but invest in the customer. Keep the ones you have and get new ones.”
*****************************************
How is Woodbine keeping old customers? By having a 28.3% takeout on triactors? By offering a piddly rebate to their HPI customers? How are they competing for not only their old customers, but new customers? Glitz doesn't do it. The reality is that 1 in 1000 HPI accounts show a profit over any 365 day span makes playing at HPI a joke. There is absolutely no buzz created, and no reason other than convenience to play there. And convenience by itself doesn't grow the business in the long run, especially in today's internet age.

Eaves said it is more difficult for racetracks to keep the customers they have when there are other gaming options at the facility. He said that more racing customers bet on other forms of gambling versus casino players who try racing.
***************************************
D'uh. Thanks for finally stating the obvious. Give Eaves a banana, he has earned it. So how will expanding casino gambling increase the amount bet by customers on parimutuel horse racing? Lets face it. Woodbine is now in the casino business. They've given up on trying to grow horse racing, but they will never admit it.


Eadington on the other hand knows his stuff as he states facts about slots and horse racing, and basically explains what is happening at Woodbine, without mentioning Woodbine: “Racing is overshadowed by the revenue that slots generates...This is the challenge racing has. It has to overcome that fundamental that the racing customer is diminishing in importance. Over time, you will see management who are specialized in managing a gaming operation."

Eadington also brought up this point: (contrary to the general perception that horses, horsepeople, owners and breeders are the foundation of the industry), "the demand from customers is what is essentially important. That is the essence of the argument that must be dealt with or else you are swimming upstream and the current will push you back ultimately....Legislators are going to look at racing and say, 'is this worth saving?' The vulnerability is very, very strong. Especially under these harsh economic times, you'll see a lot of revisiting of this whole model."



Fort Erie Update
Dalton McGuinty lent Fort Erie Mayor Doug Martin an ear yesterday
Martin came out of the 45 minute meeting optimistic, but he has been optimistic about just about everything in Fort Erie lately, so I take with a grain of salt.


Another article states Fort Erie Needs More Horses.
George Smitherman, Ontario's Minister of Energy and Infrastructure, said "they need to focus on finding ways to attract more people to come and watch them race."
**********************************************
To get more horses at Fort Erie, you need more owners. To get more owners, you need bigger purses. That is why the government needs to increase what Fort Erie gets on slots from 10% to Nordic and the horsemen each, to 17.5%-20% for each.

That keeps Nordic breaking even, and the increase in purses will get more owners to bring horses to Fort Erie, and get more owners into the business again.

Small owners and partnerships need a better chance of breaking even. The more small owners there is, the more of a chance they will bring friends and family back to the track.

I want to add that the rule where you don't get the full purse on Ontario breds once the horse is claimed is another huge deterrent to potential owners. It also helps create less owners in the long run.

That rule needs to re examined by someone who understands how to grow the industry. It really isn't very well thought out.

For example, what incentive does a new claiming outfit have in claiming an Ontario bred over an American bred? None (unless it is good enough for Ontario sire races). And they feel like they are getting ripped off if they buy the Canadian bred on top of that.

Many outfits will buy try to buy the horse after the race if interested in order to bypass the rules, and that isn't what the game should be about.

And to stay on the point of growth and buying Ontario breds at sales, the more owners there is, the more likely yearlings will go for higher prices. The reality is that most new owners enter the game via the claiming route first. If they are successful or even break even, they may start dabbling in the CTHS sales.

What is needed is state bred claiming races which give yearling purchasers more of an out when risking money at a sale.

Increasing the amount the lower end Ontario breds are worth will push up what all Ontario breds are worth collectively. Why is Ontario one of the only jurisdictions that doesn't run state bred claiming races?

Back to Smitherman:
"It's not just about having a race track in operation for the purposes of subsidizing horses running around a track."
*****************************************
Reality check: Without slots Woodbine would be close to dead today, and probably every harness track in Ontario would be out of business. The industry needs subsidies to survive, much like many farming businesses do as well.

Not that slots are that great, I've seen studies that state where ever slots pop up, parimutuel betting decreases on average 30%. And that is a lot, considering that when two people go to a track and one person bets slots and the other horses, and they both lose $100, the track and horsemen only get $10 each from the slots bettor, but they get around $48 each from the race track gambler.

High takeouts which have persisted in the industry coupled with losing horseplayers to slots (unsophisticated bettors), has made it near impossible for sophisticated horseplayer to become long term winners or even allow them to break even. Thus the shift from horse racing betting to games that offer a lower rake or takeout like online poker sports betting and exchange betting.

This is changing as more and more players are clued in when it comes to rebating on horse racing. But will Woodbine or Fort Erie follow the trend and go that way?
Fort Erie doesn't even have their own ADW. That alone could make them another half a million plus a year.

Also from the article:

'Niagara Falls MPP Kim Craitor said some new opportunities have arisen that are being pursued.

"There are a number of players who have come on board and want to be part of the solution, so it's not just going to be the government," said Craitor, not wishing to go into further detail because things are still being worked out. "That track has to be made into an entertainment complex, a place where people want to go."

The property, he added, needs to offer a broader attraction. The days of going to a track just to watch horses race are gone. Craitor said the government is looking at the entire industry, not just what is happening in Fort Erie.'

*****************************************
Again, other forms of gambling can have a cannibalistic affect on parimutuel handle. However, if other forms of gambling bring in players who wouldn't have been there to begin with, that is another story.

Sports betting, even making it parimutuel, could work to get Americans to come over the border to bet on the Bills and Sabres, for instance. These bettors may also play horses as well, while waiting to see if they win their sports bets.

I'm leery of table games like blackjack and poker because of the proximity of the Buffalo casino and Niagara Falls. These games might just take away people's horse racing money, and if the government gets an 80% split on the money made, well that will hurt the purse accounts and what the track makes even more.


Reminder: the HANA bettor friendly countdown continues. Click here, as the Top Five are just around the corner.

It Was 40 Years Ago Today.....

It Was 40 Year Ago Today....
'Feb. 7, 1969: Diane Crump became the first woman jockey in America to compete in a parimutuel race when she finished tenth of 12 aboard a 48-1 shot, three-year-old Bridle n Bit, in the seventh race at Hialeah Park.' Also, on May 2nd 1970, Crump became the first woman to ride in the Kentucky Derby. More about Crump at her web site.

This leads to the documentary Jock The Movie. It is all about the history of female jockeys. To watch a very interesting trailer, click here and click archive when you get to the site.

I never had a problem betting on female jockeys. I was 19 when Valerie Thompson was the top apprentice in Canada. She completely owned Greenwood. And I remember cashing a lot of tickets on her during her apprentice reign.



Woodbine Give Fort Erie Trainers A Bit Of A Break

Woodbine has been granting temporary stall space to Fort Erie trainers, though they've been turning down applications for trainers who want permanent stalls in the 2009 season. They are playing it on the premise that there will be a 2009 season at Fort Erie.

It will be interesting if there is no season at the Fort. That would mean there is no such thing as a Fort Erie trainer anymore, not that it says "Fort Erie trainer" on the ORC license anyway.

News on the Fort
Not much to report, except a new article that states the Province in working hard to save horse racing (in Fort Erie). Click the link and watch the video showing George Smitherman's remarks.

I don't get "But the industry has to do it's part to make horse racing an attractive and financially viable form of entertainment." Woodbine can't even do that, nor can any harness track in Ontario. How does Smitherman expect Fort Erie to financial viability? Without slots, Ontario would be doomed, as the racing execs don't have the foggiest clue when it comes to competing for the customer's buck.

Since when does financial viability have anything to do with horse racing in Ontario?

Note to Smitherman, just give Fort Erie an extra 7.5% for horsemen and Nordic each from the slot revenues, and quit grabbing air. It is the only answer at this time, barring a miracle where Nordic decides they will sell the place for fair market value.


Ontario may make it tough on Super Trainers

The Canadian Pari-Mutuel Agency will begin testing for regulated anabolic steroids in horses beginning June 1, the agency recently announced.

'According to the agency's manager of veterinary services, Dr. Mike Weber, the testing program is being launched in June to give trainers and veterinarians time to adjust to rules that only allow for the therapeutic use of four anabolic steroids: boldenone, nandrolone, stanozolol, and testosterone. Like almost all U.S. racing states, the Canadian regulatory agency recently adopted rules banning all but those four anabolic steroids, which are permitted to be used only at least 30 days before a race.'

I'm not sure who is more nuts: California or Maryland?

Normally, I would put these stories at the start of my blog post, but the idiocy that goes on with horsemen groups and racing execs seems to be a daily event as they continue to drive the game to new lows.

We are in a recession. A big one. And racing interest and fans have been dwindling way before the economy turned to crap. Put on the news, and you'll likely hear one or two stories about stimulus packages. An economic stimulus plan in the real world is when consumers are encouraged to spend money. You know, like when taxes are decreased or other incentives are given by retailers (buy a car and get a fee trip to the Caribbean, where the trip is sort of a rebate to the consumer).

I'm not sure if racing gets it, but the bettors are the consumers. Racing execs, if you are reading this, write it down BETTORS ARE THE CONSUMERS.

So lets see how racing's top vizuzus stimulate betting:

Questions Raised on California Rebating

This was put on Bet America's (an ADW in North Dakota) web site:
*** Special Notice about our Santa Anita January Rewards ***
Our right to carry racing on Santa Anita requires that we receive the consent of the race track and of the Thoroughbred Owners of California, the horseman’s group at Santa Anita. The Thoroughbred Owners of California notified us this week that it is their policy not to allow any marketing incentives on a California thoroughbred race track in excess of 2% of the amount wagered. As a result, we have reduced our January Santa Anita Rewards promotion from 3% to 2% for the balance of January.

Why does the TOC care if an ADW rebates to its customers 2%, 3%, or 12% ????? California gets its signal fee cut no matter what the ADW gives back to the customer. What is with the anti-stimulus package that will result in less revenue for California horsemen bottom line?
Is the TOC (or one or two of its high up members) protecting Elite Turf Club and RGS which rebate between 10-12% on California racing? Is he protecting other ADWs like Youbet or XPress Bet which choose not to rebate most players more than a couple of points?
How does California monitor whether Elite or RGS is giving rebates to only those who bet over a million each? And again, why does it matter?
Something stinks (if it walks like a duck, and talks like a duck, it is usually a duck), but getting back to reality, this does nothing for the average consumer who might bet where they get a bigger rebate (therefore ignoring California), and lets not forget, the bigger the rebate, the more likely the player will continue to be a customer.

See also Pull The Pocket: No Sales Allowed


Now for some more maddening bs:

'(The Maryland Racing) Commission granted a request by the Maryland Jockey Club to raise the takeout on two types of wagers, the Pick 3 and the Pick 4, from 14 percent to 25.75 percent.'
********************************************
All I can say is that HANA is growing, but just not quite big enough YET. If we were, I could see us formally boycotting Pimlico and Laurel. I do think most of the members will do so anyway.

Is it any wonder why racing is dying in North America, but it is growing in Britain and Australia?

For more on this topic, Pull The Pocket once more. Also, ThatsAmoreStable.net sums up the decision to raise takeout in three words, Stupid Stupid Stupid



Just another reminder, the reality series Jockeys will debut on Animal Planet in Canada Saturday at 9:00 PM. Richard Eng calls the first show riveting.



North America's top 20 bettor friendly countdown continues.

Bloodhorse has picked up the Top 10 Countdown

HANA continues to grow quickly:) Sign up if you haven't already (it is free). You could also check out the HANA store and order something. We could use the dough to steam roll ahead.

Does Dutrow Know How Speed Figures Are Made?

Richard Dutrow upset over Beyer article
Yes, there are ways to improve horses, and sometimes they work, and sometimes they don't. But Dutrow looks like an idiot when he says, "And his whole premise was made on the basis of his numbers. Who said his numbers have to be right?"

Dutrow shows complete ignorance on how Beyer, or any other speed figures are computed. It makes me wonder about his overall knowledge of the game, which makes me tend to believe he is in fact a juicer. Then again, I believe anyone who hits consistently at over 18% as a trainer, is using something undetectable, or something that isn't tested for.

FYI, Brisnet and Ragozolin numbers confirm that This Ones For Phil ran between 12-20 lengths faster than he ever ran before.


Andy Beyer speaks about his controversial article on Dutrow and "super" trainers in general. The audio is around an hour long, but it is well worth the listen. He also gets into the $20,000 he got screwed out of, at the bankrupt New Hampshire ADW, at the end of the interview.


50 more layoffs at Fort Erie-many of them mutuel clerks
The government should just OK the $3.2 million Nordic is trying to extort. The economy is in dire straights, and unfortunately Nordic is in a position where they can basically negatively impact a whole town of 30,000 people.
If there is a workable solution, find it, but stop keeping the horsemen hanging. Giving the owner (Nordic) and the horsemen an extra 7.5% each of the casino winnings, seems to be a no brainer at this time. Even if it is for 2 or 3 years, and then open for review thereafter.

Wasn't slots put in to help the racing industry? And I just can't see slots remaining open if there is no racing. That means another 200 plus casino jobs in the toilet. And it also means that the government will be out the 80% profit minus expenses that the government rakes in from the $40 million in slot revenues.

The track isn't worth anything close to $35 million, and I think the EDTC made this issue worse by offering that price. It gives Nordic the idea that there are dupes out there who might pay an outrageous price for the joint, and it will probably keep Nordic hanging on to the track, when it would be to everyone's best interest if they just got the heck out of Dodge.



Missing cabbie in Dartmouth blew a lot of money gambling, racked up huge debts, went bankrupt in 2006


Veteran Alberta Horseman Rod Hennessy still has hope for the industry's future. He does realize changes must be made:

"Maybe we have to take 5% of our purses, or some amount like that, and spend it totally on promotions. We have to get younger fans and younger owners interested in what we do."

********************************
I feel sorry for the harness racing industry. It always will be in the shadow of the thoroughbred industry. And the numbskulls calling the shots in that industry are like captains of a sinking ship, who just don't want to come to the realization that they need a new boat.



116 year old race track in BC looking at eviction notice
H/T Equidaily



Reality show Jockeys set for debut on Animal Planet. Chantal Sutherland is one of the jockeys featured on that show.
Here is the longer version promo:




Canadian born comic Norm MacDonald is addicted to online poker



How the recession is affecting the gambling industry

"People have not stopped gambling, they just are not gambling in traditional casinos. They are gambling online."

Horseplayers Association of North America (HANA) continues with the top 20 bettor friendly tracks countdown. Today's featured track is Fairgrounds which comes in at number 12.

Betfair Buys TVG; Canadian Implications

First things first, I didn't do any reporting on the Eclipse Awards, there are plenty of thoughts by my American counterparts within The Thoroughbred Bloggers Alliance who are more into that stuff than me. Those who read this blog know I'm more into pointing out the cynical side of horse racing, while give suggestions, and predicting which way the industry is going.

I wanted to get more detail regarding the Betfair purchase of TVG which I reported as a strong imminent rumour in my January 23rd post. To date, I can only go with what a rep told me he thinks will happen, which coincides with what I think as well. Canadians will soon be able to make wagers on American tracks through TVG at the Betfair site.

Again, betting offshore from Canada is not illegal. If it was, there would be arrests made. Simple, either something is legal or it isn't. From my understanding, unless Betfair had a server in Canada while having no license to operate here, then Betfair would be doing something illegal.

In the USA, arrests have been made against principles who own offshore houses. Laws were passed making it difficult for Americans to transfer funds to and from offshore betting shops. Betfair isn't stupid. They deem the laws in the US powerful enough that they don't take American bettors.

I've written about the legalities of betting in Canada before. Read it.

Ok, so now about the acquisition. TVG with all their content will soon be available to Betfair players. This will be a huge boon for tracks on the TVG menu. What will happen happened in Australia when Betfair went into expansion mode. Betfair customers will mostly play low commission exchange bets, but will take advantage of betting directly at the track if they see better odds there. Also, players may be torn between a couple of horses, and then bet a few exactors or triactors, directly into the America pools.

I also expect TVG to start rebating more and more, because Betfair understand how to get customers to play. Finally, I expect this change to finally change the betting landscape in North America. Exchange betting with low costs to players will become accepted in most US states.



Sure, the best thing is for the dysfunctional North American racing industry to start their own exchange. But track jurisdictions can't even agree with each other on what drugs should be legal. Because they are so dysfunctional and so behind the times in their mentality, horsemen and tracks will get somewhat punished, as Betfair will get some of the profits that horsemen and tracks could have got if they had an ounce of foresight.

The game will finally grow, and more and more households will have betting accounts and be up to speed on North American racing. Which is fantastic.

Who will suffer the most? Woodbine will. And they deserve it. With slots, they've kept takeouts to the moon, giving customers no hope to make money in the long run. From what I understand 1 in one thousand HPI accounts show a profit in any 365 day span. How can you beat a triactor takeout of 28.3%? And betting has gone down, despite populations and availability going up. Woodbine has tried to bully a monopoly status by signing collusive deals with US ADWs trying to prevent Canadians from betting through them.

The tide has turned, and Woodbine is caught with its pants down, if Canadian Betfair customers can bet through TVG. And I see no reason at this time why that won't happen.

TVG doesn't have Woodbine in their menu, and is likely to never have it now. But who cares? There are enough tracks on the TVG menu to keep the Canadian gambler very busy, and lasting much much longer, while giving him or her a chance to make money.

Business of Horse Racing has reprinted an article that was written in 2004. The Woodbine brass along with racing execs everywhere must have closed their eyes to it:
Racing's Response To Betting Exchanges.

At the end of the day I think there are six possible responses to the challenges posed by betting exchanges.

1. Racing might do nothing.

2. Racing could form a committee.

3. Racing could rely on the “competition is illegal” response and pin its hopes on the Wire Act.

4. Racing could take Jack Ketterer’s advice and try to find ways of lowering the consumer price of its product.

5. Racing could change its business model by adding new lines of business that are unrelated to horse-racing–VLTs, for example.

6. Or racing could enter the market with a competing betting exchange–or with some as-yet unthought-of method of supplying competitively priced wagering on U.S. races to the emerging global horse-race betting market.

Pull The Pocket has lots of thoughts on the acquisition of TVG. Check it out.


Speaking of a dysfunctional game. Tracknet has indeed cut off signals to Las Vegas.



The ORC wants comments on proposed changes.



Harness racing betting Ontario may be close to bottoming out. Harness racing really needs to use exchange betting to avoid extinction.


South Carolina courts will be making a monumental decision next month regarding the legality of Hold em Poker.
"Is poker a game of chance or one that involves skill and therefore legal under the law?" Simple answer is that it is a game of chance that involves skill to be successful. But more to the point, a skillful player will win more or lose less over any significant period of time than a less skillful player. Luck will even out.



Interesting. Virtual horse racing creates a real millionaire.

The millionaire's stats:PillButt 74588 races 12078 wins 35545 seconds and thirds $1013306.05 (real money earned)

74588 races over four years? That is over 53 races a day. But at a quarter million a year in income, I guess it as good a job as any. Mind you, I don't know how much it has cost PillButt to play either.



And don't forget to go to the HANA blog as the countdown to the number one bettor friendly race track continues. Today's feature is Del Mar, which comes in at number 14.

Deadline Extended By ORC On Fort Erie's Fate; Horsemen Hung Out To Dry

The ORC has extended Fort Erie's licence to the end of March, making today's drop dead date null and void. Nordic has until mid March to announce whether racing is a a go or not.

The government needs more to time to assess the proposal set forth by the Fort Erie EDTC.

Concerns about the proposed slots deal where Fort Erie lends 200 machines to Woodbine has been mentioned as a cause for delay. Well d'uh. First off, the EDTC wants to dictate that the machines would be theirs, and that they would get more than the amount every track in Ontario gets on slots (they are proposing 33% for each the OLG, Woodbine, and Fort Erie). If it was that easy, why not let Nordic lend the machines to Woodbine under that proposed agreement? That would take care of Nordic's supposed $3.2 million yearly deficit. And tax payers wouldn't have to dole out $35 million for a losing business on land that was assessed at $21 million, that would be worth maybe $7 million in a fire sale.

I don't see much of a difference having Nordic still own the place or the EDTC, who have the audacity to overprice the track tremendously to meet Nordic's extortion demands. I could just see how quickly they could deteriorate the situation if they were in charge, or had anything to do with hiring the "new" people in charge.

The horsemen are rightfully upset, as they have no clue what to do or where to go with their horses. The season is scheduled to begin the first week of May, and they need the track open for training by the middle of March. But that is only part of the problem because they have to apply for stalls elsewhere and contemplate selling their homes and/or moving. It is ugly.

Again, the only real solution for 2009 would be the OLG giving Fort Erie a special deal of 35% of slot profits for both the horsemen and Nordic.

It doesn't appear Woodbine is interested in buying Fort Erie, and it isn't likely that Nordic will sell the price for a fair price (much lower than $35 million).

Creatively, if the government were to get involved, they could back a deal where they hire a turnaround management company (with no risk to the turnaround company) to lease the track for 3-5 years from Nordic for a dollar. The government would be responsible to pay the turnaround company and be responsible for any losses incurred by the operations (keep in mind, the government could rationalize that they are doing their best to make the business profitable). This might be able to get around the government loophole where they say they can't control losses, so they can't guarantee the track breaks even. In the meantime, Nordic can look for someone to buy the track that they obviously don't want to run anymore.



UPDATE FROM ONTARIO HBPA:
ATTENTION FORT ERIE HORSEMEN

Any person wishing to convey their personal situation or feeling regarding the Fort Erie Racetrack Situation should put it in writing and then call Cara Lee at 905-871-1332.

She will make arrangements to get it to the proper authority.

Thanks,

Sue Leslie


See also Perry Lefko's article on the extension.

Niagara Falls Review story.

Another article by Lefko, this time in the Star.



Just a reminder. Go to the HANA blog and check out the top bettor friendly race tracks in North America. The countdown from 20 to number one has begun.

HANA Begins To Unveil Top 20 Bettor Friendly Race Tracks

HANA presents the first annual HANA Track Ratings
65 thoroughbred race tracks in North America have been rated in order of how appealing they are to the average bettor. There is a countdown right now at the HANA blog, starting with the 20th rated track, Sam Houston.
If anyone expects Woodbine to make the top 20, let me put you out of your misery right now. It aint gonna happen. Not with a track takeout on triactors of 28.3%.
Check the Hana blog every day to view the top 20 countdown.
If anyone is interested how the ratings were calculated, read here.



Internet Poker Still Legal For Kentucky Residents
'The appellate court ruling said Kentucky lacks jurisdiction to block online gambling because state law does not define an Internet domain name as a gambling device subject to state authority.'



Betfair is rumoured to be buying TVG. They plan an aggressive marketing campaign in Canada as they try to lure poker and sports bettors.
They are also looking to sign deals with horse racing organizations in North America, which will give USA and Canadian tracks a chance to get some of the Betfair profits.
Woodbine will never sign with them unless they stop taking bets from Canadians, and that isn't about to happen I would think.



Federal Government To Give Summerside Raceway in PEI $1.5 million in funding


TrackNet about to cut off Las Vegas signals
Like Vegas gives a flying fark. They will still have the other tracks available for their customers, and lets not forget Vegas has a few other ways in which their customers can lose their money and still have a good time.
TrackNet is going to lose out big time because of their actions.

TwinSpires To Offer Free Video of this Weekend's Handicapping Contest In Vegas.




Long time Ontario trainer Norman Bowles, 69, dead of a heart attack. R.I.P.


Nick Kling asks if new steroid rules responsible for early speed horse's inability to win races at Aqueduct and Gulfstream
H/T Equidaily


Feds Say Buffalo Casino Can Remain Open
Not good for Fort Erie even if the track stays alive. This means slot revenues may continue to dwindle. Hopefully, the government will make the OLG change the revenue distribution, and somehow make Fort Erie an exception (border town yadda yadda the only other thoroughbred track in Ontario yadda yadda yadda).

Sources say that there will be a positive announcement come Monday regarding racing at Fort Erie.

All the government has to do is OK 3.2 million dollars if Nordic is still the owner for 2009 to keep racing going for at least a year.

A long term solution of course is sought.

Three possibilities.

A sale. EDTC $35 million? I doubt it. $100,000 per acre? Found a property near the track for $61,000 per acre (note: not sold). Woodbine, possibly.

Government gets Nordic to lease out the track for say 3 years to management that attempts to make Nordic profitable, where the government guarantees any losses in the meanwhile.

The OLG gives Fort Erie a different deal. 17.5% of the slot profits to the horsemen and 17.5% to Nordic would be acceptable and make sense.

Fort Erie EDTC Has Conditional Offer To Buy The Track; New Drop Dead Date January 26th

The facts as I know them:

The Fort Erie Economic Development and Tourism Corporation (FE:EDTC) has made an offer to buy Fort Erie Race Track from Nordic Gaming (El Ad Group) for $35 million and turn the track into a not for profit organization similar to Woodbine Entertainment Group.

Meanwhile, Nordic has given the government until January 26th to come up give them $3.2 million in bail out money (which will be part of the purchase price for the track if the EDTC offer is accepted). If the government does not give in to Nordic's demands one way or another, Nordic will withdraw their racing license for at least 2009. Apparently, if Nordic doesn't withdraw, the ORC will be in a position to take the license away from them, and then Nordic may never be able to operate a race track in Ontario again.

Right now, the ORC has given Nordic a license until January 31st. They can choose to extend the license to the end of February, for example, which will buy more time for Nordic to make a conclusive decision regarding the 2009 season.


The question of whether slots will be able to continue at Fort Erie without live racing is also debatable. Nordic has a contract to operate slots until the fall, however, as Sue Leslie (from the HBPA) pointed out on phone at today's press conference, slots were put into race tracks with the intent of propping up the race track industry first and foremost. Without live racing, it is her contention that slots will not be able to operate.

This whole slot situation is a gray area for racing in Ontario and the OLG. And it could wind up in the courts, as slots definitely benefit both Nordic and the OLG, and Nordic especially, if racing were not to continue.


About the proposed purchase

James Thibert, the executive director of the EDTC came up with a pretty inventive plan to try to save Fort Erie racing. However, there are a lot of ifs in the deal.

First, the government has to loan the EDTC the money to buy the place. A 40 year low interest loan underwritten by the Ontario government is being sought. The $35 million purchase price was arrived on what Thibert believes the land to be worth. He states the land is worth on average $100,000 per acre.

I think the price per acre is debatable because if Fort Erie were to close, industrial land prices would go into the toilet in the Fort Erie area, as people would be forced to move causing demand for industrial land to weaken.

Fort Erie race track just had its property assessed at $21 million for tax purposes. Assessment prices are usually on the modest side, but the current global economic recession may mean that the assessment could be considered inflated as real estate prices are dropping in Canada at this time.

Also, Woodbine (the OJC at the time) sold Fort Erie in 1996 or 1997 for $10 plus the assumption of $3 million in debt. Granted, Woodbine wanted out at that time. With slots not in the picture, they were struggling keeping Woodbine afloat.

However, Woodbine must have figured the land was worth something at that time. I have a hard time believing industrial land in Fort Erie has gone up that much since then. But I'm not into real estate, so what do I know?

Thibert did state that Nordic received a similarly priced deal in June by a group of businessmen, but they declined to make the deal because Nordic supposedly cares about horse racing (yeah right!). Most likely is that the deal was conditional on financing that never happened. Nordic knows $35 million is a great deal for them.

And the $35 million price doesn't factor in that the business according to Nordic is a losing proposition. Thibert estimates that the track costs $11-12 million a year to operate, while only taking in around $8-9 million in revenues (which includes $4 million from their share of the slots).

It is pretty much agreed up that the race track can't make too many more cuts to help decrease cost expenses. So Thibert has also proposed a new revenue stream. He believes that he can rent out 200 slots to Woodbine, who have a $900 net per machine, and run at 85% capacity right now. He proposes that Woodbine, the OLG, and Fort Erie split the profits from those machines one third each. For Woodbine, it isn't a bad idea, because they get 20% of profits per machine, and this deal would increase their take on those machines. And for Fort Erie, this could generate a few million dollars each year, which can be used to negate their losses, and even pay back the government loan by the EDTC.

One flaw though. The machines are property of the OLG and not Fort Erie. This deal would have to be approved by both Woodbine and the OLG, and could impact all slot machine deals in the province. It might be easier for Fort Erie to give back machines to the OLG, and receive a bigger slice of the profits (30-40% instead of the 20% they split equally with the horsemen), but again, every other track in Ontario will ask for a similar deal, though Fort Erie has a unique case being the only other thoroughbred track while also being a border track as well.

Another thing that could hinder the deal is that Nordic would have to stick around through 2009 because the licensing process takes quite some time, and the new owners also need to have clean records, really clean records. Sources say that the government wants Nordic out altogether, if they have any say in the matter.

My prediction is the ORC will extend to February 28th, and that the EDTC deal will be quashed, but the government will give Nordic the $3.2 million to operate for 2009 on condition that they actively try to sell the track at a reasonable price, or more preferably, the OLG will give Fort Erie a special deal on slots where Fort Erie gets 30-40% of the profits.

See also Offer Made To Save Fort Erie Racetrack

Provinces Help Key To Fort Erie Track Deal

Fort Erie Plan Needs Ontario To Pony Up


Is the Fort Still Alive

Also, Fort Erie Gambles On Loan Plan

Track Owner Wants Down Payment By Monday

Fort Erie development group offers to buy racetrack

Exchange Ideas

The biggest problem facing horse racing growth today is the fact that they fail to compete to gain new customers while also failing to compete to keep old customers.
The racetrack isn't the place to be anymore for the gambler and internet has made the world a lot smaller.

Gambling is growing worldwide, but gambling on horse racing has been on the decline, not just due to the global recession, but prior to that, betting on horse racing has dropped in real dollars, despite the fact that one can gamble from anywhere anytime today.

I expect 2009 to be way worse than 2008 when it comes to parimutuel horse racing. The economy is in the pits, more and more players are being turned off horse racing as it is perceived as strictly a losing proposition by the masses (at least those who don't bet at rebate shops), and credit card deposits are going to become scrutinized by card companies, while more and more addicted gamblers have no more room to deposit to an ADW. The other factor is that horsemen groups are demanding more of a cut, reducing the amount players receive from rebaters. More price sensitive players, who account for a large percentage of the handle, may just either cut back or continue to leave.

Horse racing is in dire need of a major pricing change. It needs to show the masses that the game is beatable in order to attract new young blood to play.

I've often said that horse racing needs a poster boy in North America, a big winner who bets horses and consistently wins.

Poker has quite a few, and new heroes are made every now and then as well. Like Poorya Nazari, a Canadian who recently won $3 million by becoming the PokerStars Caribbean Adventure Champion. How many gamblers reading this right now can't help but think "this could be me?" Anyone thinking of gambling will be attracted to poker and not give horse racing an afterthought.
And poker is easy on newbies as well, because the game has a relatively low rake (or takeout). The cost to become a poker addict isn't all that great. And the low rake gives the player much more time for the bankroll to last, than does horse racing.

Poker is a lot easier to grasp as well. Not nearly the high amount of nuances are needed to become good at poker. Horse racing takes a lot of work in order to become good at it. And even if you are good at, it is highly unlikely you will win. You'll might only lose 5-10 cents on every dollar bet, instead of the average 20 cents. Why would anyone new be attracted to bet horses under current conditions?


Horse racing does have poster boys though...say what?
Thanks to Pull The Pocket for discovering the fact that there are at least a couple of players doing more for horse racing than every marketing department in North America put together can. The problem for North American horse racing is that these players are exchange bettors.

First Poster Boy: Adam Heathcote. A 23 year old from across the pond in London, England. He has a goal to make 150,000 pounds (around $300,000 Canadian) in 2009 betting through Betfair. He has only been playing for around a year and a half. He has a blog (Horse Racing Trader) that he updates regularly regarding his quest. As of January 14th, he was up over 8,000 pounds on the year, which is slightly higher than needed to achieve his goal.

Then there is Betdaq and Betfair Racing Trader This anonymous player had a goal to make 100,000 pounds, while starting with 1,000 pounds in 2008. By mid December, the gambler went over the revised goal of 120,000 pounds.

Sure, we have the odd blog touts in North America, who give out their selections and bets almost daily, but what is sorely missing are anything that resembles goals with actual dollar amounts. Why? Because nobody wants to make a complete fool out of himself or herself. Every bettor knows that thanks to 20%+ takeouts, a goal of breaking even would be a difficult enough feat.

I just wonder how many new players have been inspired by the two exchange bloggers cited above. I'd say many.

Exchange betting doesn't mean people will win, even if they become good, but the possibility is really there, and that is what is important. Lets face it, most exchange bettors will lose. Betfair keeps around 3.5% of what is bet on average, and Betfair cannot lose, much like a track cannot lose taking a bet (except for the odd minus pool which I don't think happens at Betfair). Still, because of low commission and churn, players get a huge bang for their buck and are highly likely to continue to play, and tell others about it.

North America needs to do two things. Reduce the takeout to 10-12% everywhere. And secondly, it needs to set up their own exchange, where the tracks that get action get the bulk of the 3.5-5% commission lost by players.

See also, Interesting Winning Bettors-At Racing!



The North American Horse Racing Industry Can Blame Itself for It's Demise...
Good article, read it. Especially something us Toronto born horseplayers can really relate to.
Horse racing is a gambling product not an entertainment one. Racing execs either want to pretend this isn't the case or still "think" they can dupe the public into believing it isn't the case.

Here is an excerpt that is further proof that Woodbine Entertainment could do itself a favour by cleaning house:

In 1996 when Woodbine was to host the Breeder's Cup, the union that represented the ticket takers went on strike. David Willmot, the President of Woodbine Entertainment, considered withdrawing his bid to host the Cup. Upon hearing this I contacted Mr. Willmot and told him that if he did so he would pass up a golden opportunity to win a new generation of fans, and once again reclaim the families that would witness the great racing of the championship day. He in turn invited me to the offices at Woodbine to discuss the issue, telling me that he is indeed interested in the fans that became disenfranchised and that my demographic was exactly what they were trying to win over (20-30 something families with young children). We discussed numerous concerns, from lack of things for families to do, small field sizes, high takeouts, disassociation of the horsemen from the fans, lack of perks for larger horse bettors and many other issues. I mentioned about 20 issues, and he agreed with every single comment I made. In fact he told me of his grand plan to make Woodbine into the ultimate Entertainment complex. He envisioned family areas, slots for the single women who didn't want to attend the races, new betting options, perks for the regular attendees, lower takeouts for those who bet more and a better form of entertainment for all who come to the track. While off-track betting and racing on TV were starting to grow, Willmot agreed that the only way to get the next generation and those afterwards interested in horse racing again was to woo them back to the track. Only seeing the product live would win over those who aren't familiar with it. He listened to my arguments and comments, agreed with all of them, and implemented none. Yes, slots were added to the track, but those were already in the works prior to the meeting. Parking and admission prices, were dropped, but that was only because they couldn't charge people to play the slots. New betting options were added, but only ones that weren't winnable. I was talking about ideas such as horse matchups, and Woodbine instead opted for pick 7s and superfectas. As far as a place for women and children to enjoy themselves, Woodbine offers little; and on my travels to other tracks throughout the U.S., I noticed there was nothing for families there either. Plus, for the loyal race goer there are still no perks for them. In fact the only perks offered are for those who bet at teletheaters or by phone. Betting at the track gains the bettor nothing.

**********************************
Things have changed further since 1996, making the idea of attracting newbies by getting them to the track even more difficult. It is so easy to gamble on more competitive forms of gambling from home, lotteries have been growing in popularity, and slots has made the idea of family outings a near impossibility, as one of the parents is likely to be attracted to the slots, thus breaking up the family experience that was once found in the 60's and 70's.


New Horse Racing Time Waster from Addicting Games
A new easy to play horse racing game has appeared at addictinggames.com; Racehorse Tycoon. I like the part where you get to choose the horse's diet. Your choices include beers, cakes, burgers, or cheese:) I usually choose beer since vodka injections aren't on the list.
And the best part of the game is that you can play and after an hour or two, you haven't lost a dime.

Save Fort Erie Rally: And The Verdict Is "We Don't Know Yet"

A crowd of around 150-200 ready for the January 15th due date decision as to whether racing will happen at Fort Erie in 2009:



MPP Kim Craitor, not looking very happy, tells the crowd to blame him for the due date of January 15th, as he was confident he would have a deal done by today. He says he is still hopeful that a deal with the government will happen soon enough to give the horsemen enough time to make arrangements to stay at Fort Erie:


I think almost everyone is in agreement that Nordic needs to go. They can't have a clue how to run the business if their expenses are really losing $12 million a year (that is supposedly before interest charges on an alleged large loan). When tracks like Beulah and River Downs can run 100 days a year each without a $4 million buffer from slots, and most likely do not lose money (though I don't know for sure), either Ontario makes it impossible for businesses to make money, or the track is poorly managed.

Problem is that Nordic has allegedly asked too much for the place. If slots remain open without racing, they most likely would be profitable, so they don't seem to be in any rush to panic. If the slots close, then they have a white elephant, and they will still have to cut checks for things like property taxes. And right now, I don't think Nordic aka El-Ad aka Delek is prepared to write any checks whatsoever.

How much is a business, with no income and 300 plus acres of industrial land, in a community that will be partially disbanding, that can't even support 3 grocery stores right now, worth?

The only two answers to satisfy horsemen right now will probably come from a government bail-out. But Nortel didn't get a bail-out when they recently asked.


The other solution has David Willmot biting the bullet and buying back the track. He can ride in on his white horse, and show how much he really cares about racing in Ontario. Woodbine Entertainment is, after all, a non profit organization, right? They are supposed to be the leaders in HORSE RACING in Canada, not slots, not casino games, and not sports bars. A track that loses two or three million a year should easily become profitable under Willmot's fine team (OK, maybe that is asking a lot), but they can still afford to take a $3 million a year hit and still offer huge purses at Woodbine.

Lets not forget that when the OJC sold Fort Erie for $10 and assumption of a $3 million debt to Nordic, Woodbine was struggling themselves. The only thing Woodbine struggles with now is catching up to the 21st Century when it comes to competing for todays gambler's business.


One thing is for sure, lack of horse racing in Fort Erie will completely devastate the town's economy.

I know other solutions are being brought to the table. But their viability and the time it takes to implement any of these might not save Fort Erie in time for a 2009 season, at the very least.

For instance, Fort Erie Mayor Doug Martin is going to Toronto on Monday or Tuesday with some sort of plan, though he and EDTC GM James Thibert didn't elaborate on what it was.

See also Town Bringing Fight For Racetrack To Toronto

Horseplayers Association Of North America Starting To Change Industry Mindset

Two things are happening right now. The internet is allowing bettors to have a forum, to criticize, and make positive suggestions, that are in the face of racing execs.

The most important thing is that what members of the Horseplayers Association of North America (HANA) are saying and predicting regarding the state of the horse racing industry, are occurring, and very quickly.

Unfortunately, the industry seemed content with stagnant growth of late, but now we are seeing a real decline, and it isn't pretty. HANA has outlined the reasons why the decline has taken place, first and foremost has to do with horse racing's decision not to compete with other forms of gambling by keeping the cost to the player (the takeout) in the stratosphere.

Bettors, regardless of whether they understand or even care about track takeout, understand that they last a lot longer betting sports, poker, and even slots. The takeout makes the thought of betting on horses a complete negative.

Without winners (other than the winners who play with rebate shops), the industry has no meat to attract new customers. Unlike the days of old when winning was possible, when there was only 8 or 9 races to bet on each day, five days a week, and the bettor had to show up at the track to place a bet, and there were lower takeouts back then, and only one daily double and an exactor or two to possibly derail the churn bank roll, today, you can bet from everywhere, almost anytime, from noon until midnite, and there is a triactor with a takeout of anywhere between 20-30% enticing bettors to play, and there isn't just 40 races a week available either.

Mathematically, the game is as close to impossible to beat today, and the addicted are starting to die out, not being replaced. The young have already discovered poker and sports betting, to not only be possibly beatable but also they are games that allow bankrolls to last, much like bankrolls lasted back in the 60's and 70's for horse racing players.

I could also mention drugs which also add to the takeout the non insider must face. But I'm a very strong believer that if racing attracts more bettors, drugs will be scrutinized much much more than they are right now, especially if they get in the way of players who come close to beating the game for a living.

Right now, does it matter that much that trainers are cheating and ripping the public, when the public has next to no chance of beating the game because of the takeout drugs or no drugs. That is why I laugh at Woodbine's issue with the horsemen regarding drugs and integrity for their customers. They charge a 28.3% takeout on triactors, even though they have slots, and they have the nerve to mention doing something for their customers, or the word integrity? Cracks me up.

As for the decline in wagering, if we look at Ontario harness racing as a leading indicator, horse racing could be in huge trouble now, and we might see a rapid fall off from here if things aren't changed in a hurry.

But alas, the execs are taking notice. Nick Kling just wrote a piece called Lights in the tunnel?, that shows that execs are starting to get it:

Chris Scherf, executive director of the Thoroughbred Racing Association (TRA), acknowledged in comments made on the internet web sites of bloodhorse.com and the Paulick Report (paulickreport.com) that weakness in the economy is not the only reason for the wagering free fall.

The TRA is an industry arm which represents several dozen North American racetracks. Scherf told bloodhorse, “This should be a wakeup call to our industry that ... we need to keep focused on the issues of pari-mutuel wagering and the bettors.”

Scherf added, “The first voice we need to listen to are the bettors. If we are not meeting their needs, and obviously we are not, we need to figure out ways to address those.”

.....Scherf told the Paulick Report, “We’ve got to look into pricing (the takeout charge on pari-mutuel bets).

***************************************************
Drew Couto, President of the Thoroughbred Owners of California (TOC) also had interesting things to say, and seemed to be in complete agreement that changes are needed when it comes to takeout, even adding that new ways to bet (like exchange betting) need to be seriously considered. Read more here.


I realize I'm one of the most vocal members of HANA, at least on the internet, but KUDOS go out to the others who have blogged, and left fantastic comments on sites like Paulick Report, that have helped gain attention to our cause.

HANA is not out to wreck the bottom line for racing execs and horsemen, just the contrary as we know that by lowering track takeout, the bottom line will increase as more players will be created, existing players will spend more time playing, and money bet offshore will be placed into the North American pools.

We want more players as much as race tracks do because it is very difficult to have or maintain any advantage when pitting good handicapper versus good handicapper. We want the sports bettors, the slots players, and even the lottery players to bet horses instead.

HANA has around 500 members, and membership is free. The more members we have, the more power we will have, so if you haven't signed up as of yet, please take a minute or two and join by clicking this link.

HANA has a blog. We also have a website. You are free to make suggestions, and we will listen, or you can support us silently by just adding to are growing number of members. Also check out HANA's Facebook page.



FORT ERIE UPDATE
Looks like January 15th is going to be the make or break date regarding whether racing will happen in 2009.
Rumours have it that the government gave Nordic a take it or leave it offer, but there is a good chance that it won't satisfy Nordic. Lets hope this rumour is wrong regarding Nordic accepting it.

Why does Thibert keep saying Nordic is willing to invest??
Nordic has already suspended the $300 million nonsensical project indefinitely a few months ago, regardless of whether the government would go along with it. I just don't get what Thibert is thinking or what he knows or thinks he knows.
Nordic's parent company is getting hammered as well thanks to the global recession and they already postponed a project in Vegas where 1.25 billion was spent on acquiring land a year ago that today is worth half that.
Nordic is simply looking for a bailout where they can at least brake even "according to their books." That in itself isn't something I agree with, but I'm accepting to it if it means the survival of the racetrack.


David Willmot comments on ceasing negotiations with the OHHA.
But please Mr. Willmot, stop mentioning integrity for your bettors when you maintain one of the highest collective track takeouts in North America, and where is the integrity in having "secret" rebate deals with some of your biggest player?

I do think that high percentage trainers should be tested for everything, and I'm not sure if barring horsemen on hearsay evidence is the correct way to go about doing business.



THE BETTING ADVANTAGE
Got an email from someone who runs The Betting Advantage website. The guy who runs it is from PEI, and he gives what looks to be a analysis of his highlights each day, as he plays mainly Betfair.

Check out his Phoenix Rising post, where he shows that at one point in yesterdays Cardinal upset over the Panthers, those on Betfair could have got at least 99-1 betting Arizona.
He tells us he got out on the days after picking Baltimore to win the first game yesterday, but wound up betting poorly (too defensive), so that he actually lost money on his selection.