Penn National chairman Peter Carlino and CHRB vice chairman David Israel don’t agree on the value of supplementing purses, but they do on racing’s demographic. “There aren’t sufficient numbers of racing customers in the world anymore because they died,” Carlino said today in an investors and analysts conference call. “The average age of our ontrack customer is deceased, and the average age of our satellite customer is decomposed,” Israel told attendees of the UA-RTIP symposium last December. At least Israel went on to talk about reaching out to potential un-dead fans.
HANA president Jeff Platt, a racing customer very much alive, talks to Jack Shinar about the month-long players’ boycott of California. “Right now I believe there are a number of people in track management that are considering going to the CHRB to ask that it rescind the takeout increase,” said Platt, who took part in recent meetings with track executives. “The TOC is being very tight-lipped about this. This was a horsemen’s idea, after all, not a track idea.” No comment on the boycott from the TOC to Shinar. (Are they just considering, or have they already had discussions about rescinding the takeout increase? That’s an interesting question, considering the depressed handle and what must be growing concern re: the purse account.)
The equine California makes his debut
in race eight at Gulfstream on Saturday in the first race at Gulfstream on Sunday. Trainer Todd Pletcher scratched the Madcap Escapade colt from a race that included barnmate Cal Nation, a half-brother to graded stakes winner Bluegrass Cat, and re-entered him in a race that came up a little less contentious. John Velazquez is named to ride on Sunday, instead of Ramon Dominguez, who had the mount in Saturday’s race.
2/7/11 Addendum: California finished third in his first start.
Santa Anita and Del Mar executives recently met with horseplayers to discuss the January 1 takeout increase and other concerns. Art Wilson reports:
A HANA-backed boycott of California races is believed to be a factor in Santa Anita’s declining handle numbers this meet. HANA president Jeff Platt and the group’s California representative, Roger Way, met with Santa Anita president George Haines and Allen Gutterman, the track’s marketing director, on Sunday at Santa Anita and with Del Mar president Craig Fravel and marketing director Craig Dado on Monday … Aaron Vercruysse, hired recently by the Thoroughbred Owners of California to advise the group on betting matters, attended Sunday’s meeting …
The meetings are evidence that horseplayers, as represented by HANA, have gained the clout to compel conversation about customer issues. And while conversation isn’t action of the sort that’s going to end the players’ boycott, it is a start, one that went over well with Andy Asaro, a California horseplayer who attended both meetings. I talked with Asaro last night and he was positive about the discussions, describing the Santa Anita and Del Mar executives as “very interested” in the bettors’ perspective and open to making adjustments. He was less appreciative of the TOC, represented by Vercruysse. Although Asaro found Vercruysse pleasant and knowledgeable, he felt his presence was perfunctory. “He was there for the TOC to be able to say they talked to us,” said Asaro, suggesting that wasn’t enough. “They need to show goodwill.”
1/31/11 Addendum: HANA president Jeff Platt answers questions about the meetings. Noted: “However, I think there might be at least partial support at this point within track management to rescind the takeout increase. I say that because they reached out to us. They are looking for solutions.”
Santa Anita executives went on the offensive over the weekend, releasing figures showing the handle decline isn’t as bad as numbers bandied about in discussing a horseplayers’ boycott suggest. Art Wilson reports:
While cold, hard figures show Santa Anita’s overall handle was down 17 percent through Thursday, track officials contended Saturday their handle was down only 8 percent if you use “comparable days” rather than “calendar days.”
According to Santa Anita director of mutuels Randy Hartzell, it’s “not fair,” for instance, to compare opening weekend last year to the meet’s first two days this year (something I brought up, somewhat in jest, last month). Handle on comparable days totals $97,086,816 for 12 days of racing this year, said Hartzell, down from $105,784,974 last year; that compares to an overall total of $79,085,032 this year, down from $95,191,018 last year.
I asked Wilson the source of the article’s totals, and he replied that the numbers are derived from DRF data, not the CHRIMS data recently referred to by Scott Daruty on the Paulick Report, which gave rise to questions about how the track’s total handle figures are determined. “I am told by more than one person (Santa Anita and the CHRB) that according to CHRIMS daily average handle is only down about 8.2%,” wrote a California bettor seeking an explanation of the differences in an email I received this morning:
If that is true then Equibase and DRF are putting out false handle numbers to the public and have been for years…. How do DRF and Equibase come up with the handle numbers they disseminate? Can someone from Equibase and DRF respond to this please?
Good question. But — and I write this as someone who would also like to know how the figures are derived and their accuracy confirmed — it’s a tangent here. I mean, hey guys, you’re arguing about how much your handle is down. Your handle is down, at the same time that Tampa is booming and Gulfstream is reporting gains. Aqueduct isn’t up, but that’s because NYRA was especially hard hit by NYC OTB’s closure, and they’ve admirably met that challenge so far by treating it as an opportunity to cultivate new customers, take over the OTB TV channel, and get live streaming video on the NYRA Rewards site.
Santa Anita’s handle is down, and track executives are debating by how much? Instead of admitting that customers might have a point — that maybe the product is overpriced, or not all that enticing — and considering how they might respond positively to reverse the slide, they’d rather defend how they’re running the business. The way things are going, that’s right into the ground.
Oaklawn Park opens today. Trainer Larry Jones, refreshed by semi-retirement and recovered from aluminum poisoning, is back. So is Lady Giacamo, one of the first winners for her sire Giacomo and one of the first additions to my juvenile watchlist last year. After going 3-for-3 at Lone Star early in the summer, the filly was brought to Del Mar, where she didn’t race, and returned to the work tab at Remington in November. The six-furlong Dixie Belle Stakes will be her first start since winning the TTA Sales Futurity last June.
Square Eddie, returned to training after a year at stud, set a track record of 1:13.11 for 6 1/2 furlongs winning at Santa Anita on Friday. It’s just the latest record set over the new dirt track, prompting Brad Free to wonder, “when horses run as fast as they have been running this winter at Santa Anita, one has to ask again — at what expense?” I very much hope not at the expense of aggravating the physical issues that sent Square Eddie to the shed. “He had a high suspensory strain and I’ll be very interested to see how he looks in the morning — if he’s knocked out or body-sore,” said trainer Doug O’Neill after. “Hopefully we’ll find an empty feed tub and a bright, happy horse.”
The chipmunks are attacking! How could they not, when provoked like this? According to Santa Anita executive Scott Daruty, handle on Santa Anita was up 5% on the first official day of the horseplayers’ boycott, not down more than 15%. Numbers from the CHRIMS database — numbers not publicly available or reported by Equibase, DRF, or the California stewards, and therefore unverifiable — say so. I’m not a member of HANA, and even though I’ve bet less than $20 on Santa Anita since the meet started, I’m not boycotting. (Short fields dominated by speedballs and favorites bore me.) I’m an observer, and my interests lie in having access to accurate numbers and trying to understand what those numbers mean. If the track handle numbers reported on charts and treated as standard by every trade publication (including the one Daruty is speaking through) are inaccurate, then we have a bigger problem than trying to determine whether Thursday’s Santa Anita handle was up or down — the quality of handle data, as well as all reportage based on it, is compromised.
… Jamgotchian said he feels California is a better place to race now because the “purse structure is higher” and smaller stakes fields increase the chances of his horses acquiring black-type than, for example, at Gulfstream Park.
“There are less horses in California to compete against. The new dirt track at Santa Anita is also an impetus,” he said.
At least someone sees a silver lining in the horse shortage plaguing SoCal. More than 2,400 horses stabled at Santa Anita and Hollywood, and Saturday’s Sham Stakes, the first of the track’s Kentucky Derby preps, only draws five — all maiden winners, but for Clubhouse Ride. What is really going on? Foolish Pleasure would like to know:
Can anyone explain exactly what is the real story behind California’s so-called “horse shortage”? Reading Steve Andersen’s piece in the DRF this morning it struck me once again that all we ever hear out of that state in recent years is excuses why they can’t fill cards.
Field size, reports Blood-Horse in an article on the horseplayers’ boycott of California, “is averaging 7.69 horses per race, down from 7.91 from the same period last year.” That’s with one fewer day of racing a week.
I’m not sure how much longer the higher purses drawing Jamgotchian will be around, if the boycott succeeds. It does seem to be attracting attention. It also may be making a noticeable impact. Thursday was the first official day of the action, and compared to the previous Thursday, handle was down 15.26% (from $5,454,129 to $4,621,858), despite steady attendance, the same number of races, and a difference of five starters. The decline was striking, after a couple weeks in which figures were down, but difficult to interpret.
Five for the Sham, but eight for Sunday’s El Encino Stakes, which features certain 3-year-old filly champion Blind Luck making her first start of the year. She’ll be running against the new dirt’s speed-favoring profile and front-runners Champagne d’Oro (the other G1 winner in the field) and trainer Bob Baffert’s Always a Princess, coming off a fourth in last month’s La Brea Stakes.
Through Sunday, on-track attendance at Santa Anita is down 9 percent. Total all-source handle is down $11.5 million, a decline of 13.4 percent.
On-track and intra-state (within California) handle is down 7.8 and 6.7 percent, respectively. The most significant loss is in inter-state wagering, which has fallen 19 percent.
The trend: After the first seven days of racing at Santa Anita, average handle was down 18%, out-of-state handle down 21.9% over the previous year. After the first two days, total handle was down 26.2%, out-of-state down 32.3%.
Things are going great at Gulfstream: Five days in, total handle is up 17.2%.
What a difference eight months can make: An email arrived over the weekend pointing to this DRF interview that appeared with then-new CHRB chairman Keith Brackpool in January 2010. Brackpool opposed the Los Alamitos takeout increase, telling Steve Andersen, “It’s a slippery slope … I don’t like it.” In September, after California governor Arnold Schwarzenegger signed the law that included the statewide takeout increase that’s riled up horseplayers, Brackpool was quoted by the Blood-Horse as saying, “We offer in California the premier racing product on a year-round basis, but we were offering our first-class product at a discount price. We’re changing the pricing model.”
Whatever the reason for Brackpool’s shift in perspective, the board’s decision to accept higher takeout on exotic wagers so as to boost purses by $25-30 million seems to be backfiring just days into the Santa Anita meet. Ray Paulick beat me to the numbers: Wagering through the first seven days is down an average of 18% over last year’s winter meet; out-of-state handle is down 21.9%. One big bettor tells Pull the Pocket that he’s not playing California, and that others are either wagering less or looking elsewhere:
“Out of the guys who I have told you about before, two are just dabbling nickels and dimes at Santa Anita, one is betting much less, I have stopped cold turkey along with another. The last guy is looking for a new circuit to bet and tells me he has been studying for that. It’s unlikely he’ll come back, unless something changes there. The ones who are still betting obviously operate on very thin margins so if they see their day to day results dropping [e.g. with the higher takeout], I’m sure they’ll quit and just go for carryover pools and I’m pretty confident that will be the end result.”
Re: thin margins, Ed DeRosa has posted a chart clearly demonstrating how takeout affects bankrolls, and makes the point that it’s not only bettors harmed by raising takeout, but tracks. Short-term gains have long-term costs. One track that’s earning kudos for getting it right is Tampa Bay Downs, which actually out-handled Santa Anita last Wednesday and is posting double-digit gains daily. Tampa, which has had much success with its program for Churchill-pointing 3-year-olds over the past few years, may also draw the leading Kentucky Derby prospect this spring. Trainer Todd Pletcher is considering the March 12 Tampa Bay Derby for likely juvenile champion Uncle Mo, who’s about three weeks away from his first breeze of 2011.
1/4/2011 Addendum: Takeout math from Trackmaster, using a Pick 3 wager as an example. Originally posted last August, newly relevant.
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