Handle
More SA Numbers
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.
Saturday Notes
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.
California Jam
Why gadfly horse owner Jerry Jamgotchian is coming back to California:
… 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.
Reading the Numbers
Nick Kling on the first 11 days of racing at Santa Anita:
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%.
Odds and Ends
Blind Luck is raring to go for the El Encino Stakes next Sunday. She worked seven furlongs on Santa Anita on Friday in 1:25.20 and then galloped out another seven furlongs. “For a slightly built filly, she has loads of energy,” observed Jay Privman. On Sunday, it was The Factor flying over the Santa Anita dirt, going five furlongs in :58 flat. “He went a little too fast — he got away from the rider,” said trainer Bob Baffert of the 3-year-old colt.
Culture clash at the Big A? “I feel like I’m in an OTB! I feel like I’m in an OTB!,” LATG overhears an Aqueduct patron telling a security guard. Friday was the one month anniversary of NYC OTB’s closure. Funny, but the parlors already seem like something out of the far past, which I suppose says something about how removed from the mainstream life of the city they had become. (If you’d like to remember days at the OTB, here’s an unexpectedly poignant little video that captures the operation’s waning hours.) While there are some pains as the new element is absorbed into the track scene, NYRA’s efforts to attract displaced OTB bettors are paying off with higher ontrack handle and 2,434 new NYRA Rewards customers since December 8. On Saturday, the new Belmont Café took in a high point $137,889 in wagers from 325 players. “It just goes to show you that simple accommodations — a clean bathroom and a decent place to eat — can go a long way,” writes Jerry Bossert. There’s a still a significant shortfall in NYRA’s total handle, but the trend is positive.
So, the investigation into the l’affaire Life at Ten is ongoing, with the Office of the Inspector General in the Kentucky Transportation Cabinet being brought in “to have some independent review for certain aspects of it.” That’s KHRC executive director Lisa Underwood talking to Jennie Rees, who also reports that the KHRC has conducted 90 interviews regarding the Breeders’ Cup Distaff Ladies’ Classic fiasco. Ninety? Once this investigation concludes, how about another into what’s been a frustratingly opaque and slow process.
A New Year’s resolution particularly relevant to the above: “Protect the punter.”
Final handle numbers for 2010 were down 7.3% from 2009, to $11.4 billion from $12.3 billion. That’s the lowest annual total since 1995. “Obviously, we are losing bettors to other forms of gambling,” TRA executive vice president Chris Scherf tells Janet Patton. “We are in the midst of an unmanaged, market-driven contraction touching most aspects of the racing business.” Unmanaged is the key word, and nowhere is that more apparent right now that in the date dispute shaping up in southern Florida between Calder and Gulfstream. As for losing out to other games, sports bettors and poker players are pretty upfront about why they’re not paying much attention to racing.
Monday Notes
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.
One Way to Spin
The weather* continued to hammer Santa Anita on Monday, with total handle for the second day of the meet totaling $5,529,285, down 34.5% from the $8,443,017 taken in on the second day of last year’s meet. For the first two days of the meet, total handle is down 26.2% compared to last year. “There is no way to spin this,” Bill Christine quotes bettor Andy Assaro saying of the opening day decline. I’m a bit disappointed Santa Anita didn’t even try to give the numbers a positive gloss. (Were they not paying attention to Del Mar and NYRA this past summer?) After all, the first two days last year fell on Saturday (usually the best day of the week for handle anywhere) and Sunday, this year on Sunday and Monday. Comparing opening day Sunday 2010 to second day Sunday 2009 yields an increase of 38.7% in handle. Comparing the first two days this meet to Sunday and Monday 2009 delivers an increase of 22.2% in handle. A brazen publicist could really run with those percentages.
*There is no horseplayers’ boycott, comrades. In fairness, though, Monday was a snow day for much of the frozen northeast, with no simulcasting at several tracks, and no betting through NYRA’s online or telephone services. [Also, left out above, comparing Monday 2010 to Monday 2009 shows a modest decline of 2.3% in handle. That’s with one additional race on the card.]
11:20 AM Addendum: Here’s a question: How much of Santa Anita’s opening weekend interstate handle did NYC OTB account for in 2009?
Speed Up, Handle Down
So, was the horseplayers’ boycott a success before it even began? I was among those who thought that anticipation for the first day of racing at Santa Anita in eight months and pent-up dirt demand would lead to a surge in opening day handle. That’s not what happened. From every angle (opening day last year, the last opening day on Sunday, the last opening day with a dirt track), handle was down across the board. Compared to 2009, attendance was off 4% (from 35,292 to 34,268), on-track handle down 15% (from $4,531,236 to $3,851,594) and total handle down 21.5% (from $14,913,953 to $11,707,276). Several factors surely affected the numbers: The track ran nine races this year, 10 in 2009; all the turf races were moved to the main track; there was no handle from now-closed NYC OTB; rain in California and snow on the East Coast may have kept some bettors away. But it also seems likely that a notable percentage of players held back bets, whether to protest the takeout increase or to watch how the reconstructed surface performed.
Santa Anita gave a brave spin to the day’s numbers, issuing a press release in which track president George Haines said, “I think it’s safe to say that we again demonstrated in a very profound way that our fans will continue to support Santa Anita in a big way on our big days. We’re very hopeful we can build on the momentum we generated today and carry it through the entire meet.” That might be difficult, if there are too many cards like Wednesday’s nine-race 61-horse line-up ahead. For comparison, Tampa drew 100+.
The new track looked like the Santa Anita dirt of old on Sunday, with California speed back in style and favorites winning four of nine races (and finishing in the money in eight of nine). “Southern California racing has been a soap opera the past few years,” writes Jay Privman. “Sunday made it feel even more so, as if the past three years at Santa Anita, under a controversial synthetic surface, had merely been a dream.” Trainer Bob Baffert, who might be more inclined to call the past three years a nightmare, was in the winner’s circle after the fourth race, posing next to a freakishly fast 2-year-old named The Factor. “If he’d have lost today, I would have quit training,” said Baffert. Going gate-to-wire, as did the winners of all three six furlong races on the card, The Factor set a new track record of 1:06.98 for the distance while winning a maiden special by 8 1/4 lengths as the 3-2 favorite, his time good for a Beyer speed figure of 102. Switch, the first of trainer John Sadler’s three stakes winners on the day, bested the stakes time of 1:20.45 posted by Mamselle Bebette in 1993 by winning the G1 La Brea Stakes in 1:20.33. Twirling Candy, finishing a nose in front of Smiling Tiger, broke the track record of 1:20 for seven furlongs set by Spectacular Bid in 1980 by winning the G1 Malibu Stakes in 1:19.70. That the Bid’s record was in danger was anticipated early in the day, and not with much joy. “I kind of have a problem with that,” said one of the house handicappers on the track’s feed, talking about Santa Anita’s decision to restore the old dirt track records, ignoring the differences in the surfaces and the synthetic interlude, and I kind of agreed. Twirling Candy is no Spectacular Bid, even if he — like Sir Beaufort winner Sidney’s Candy — is now an Omnisurface Star.
1:45 PM Addendum: Jay Hovdey posts re: Sunday’s lickety-splits: “Meanwhile, up in his booth at the top of the stretch, track superintendent Rich Tedesco was banging his head against the desktop, knowing full well that too fast is just plain too fast when it comes to protecting the frail infrastructure of the Thoroughbred racehorse from his own natural instincts to flee. He also knows that horses like Spectacular Bid don’t come along every 30 years.”
Day 2 Post-NYC OTB
Aqueduct numbers year-to-year, week-to-week, and day-to-day:
On the second day without NYC OTB, on-track attendance was still up, and on-track handle spiked by almost 11% over Wednesday, 12.8% over the previous Thursday. Interstate handle declined from the day before, but was up a tiny 1.3% over last Thursday. The ugly number is intrastate handle, which was down 4.6% over Wednesday, and almost 39.1% from last Thursday. How much of that was money moving? The difference in on-track handle from Wednesday to Thursday is plus $53,125; intrastate handle minus $40,000. If most of the upped on-track dollars were formerly intrastate wagers, then NYRA made gains, even if small. Over on LATG, Alan Mann estimates that NYRA needs to “capture one-third of the wagers placed on its races at NYC OTB in order to break even,”* and it does seem as though they’re doing all they can to grab those bettors, if the flurry of press releases sent out today is any indication, offering double points to customers signing up for NYRA Rewards before December 31, opening up Belmont for simulcasting beginning this Sunday, and looking for a way to get the races back on TV in the city.
In a comment yesterday, EJXD2 said, “I wish people would stop lamenting the death of NYC OTB and instead celebrate that a corrupt system is no more.” Fair enough. Huzzah! NYC OTB is dead! But there’s not much time for lamenting or celebrating. John Pricci called December 7, “the beginning of the end of the modern era of racing in New York,” and while we may not look back on that as such a bad thing, given how troubled the era passing became in its latter days, there’s pain ahead due to lost livelihoods and inevitable structural changes. The bright side (really) is now that closure has come to pass, and action is necessary before the whole industry goes broke, New York has an opportunity to blow up the dysfunctional OTB system and replace it with a streamlined operation** better suited to supporting racing in the contemporary market, which means efficient management and an approach to customers that’s less get-your-fix and more have-great-fun. It won’t be easy, but it must be done.
*8:15 PM Update: Talking to reporters in the Aqueduct press box this morning, NYRA CEO Charles Hayward confirmed that’s about right: “Hayward estimated that NYRA has to try and make up for 35 percent of what NYCOTB handled at its parlors because only 2.4 percent of each dollar wagered at an OTB parlor goes to NYRA, compared with 10 percent of each dollar wagered ontrack.”
**12/10/10 Update: Writes Jerry Bossert in the NY Daily News: “I’m all for it, but it will never happen as there would then be only one President, one vice-president, one director of marketing, etc. It will never fly as there are too many patronage jobs out there currently occupying all those seats in the other five regions.” I fear he’s right — political considerations have held up past attempts at reform — but maybe NYC OTB closing was just the shock needed to make this time different. (Via @BklynBckstretch.)
Day 1 Post-NYC OTB
Crisis has a way of focusing the attention. And so it was that in a matter of minutes, during an emergency meeting of the New York State Racing and Wagering board held Wednesday in the wake of NYC OTB’s closure (audio), it became possible for New York horseplayers to sign up instantly for online wagering accounts instead of in person as previously required. The process was streamlined in an attempt to capture shut-out OTB players. “This is a crisis situation and we’re trying to react because people will find their way to a barber shop or the corner bar [to bet], and that helps no one, not the racing industry or the state,” board chairman John Sabini told the Associated Press. (The silver lining to this mess may be that things get a little easier for horseplayers, although it doesn’t sound like that will be so re: streaming video of races. Disappointing. And dumb.)
David Grening reports in DRF that 61 new NYRA Rewards accounts were opened on Wednesday, presumably by OTB customers who made their way to the track. Aqueduct attendance figures were up, compared to Thursday, December 2 (NYRA canceled racing on Wednesday, December 1) and Wednesday, November 24; handle numbers were down, according to figures reported by the Thoroughbred Times. While average total handle decreased “only” 4%, no doubt aided by a lack of racing in California, Florida, and Kentucky on Wednesday to distract simulcast players, intrastate handle was down more than 36% over December 2 and almost 47% over November 24. A number that didn’t show much of a change was on-track handle. Despite a 26% spike in attendance, on-track handle was up a mere 1.65% over December 2. One of those attending, and probably not betting, was Jesus Leonardo, an NYC OTB stooper profiled in the New York Times earlier this year. In a phone interview with the Times on Wednesday, Leonardo said he plans to keep on stooping, at Aqueduct and other tracks in New York, New Jersey, and Philadelphia.
“OTB was horrible, and horribly run, in many many ways. But the OTB parlors were places like no other and I, for one, will miss them,” writes the blogger Fat Al on The Half-Empty Glass. I will too. There’s no getting around that the storefront parlors were often as unpleasant as their critics alleged, but OTB was a distinct New York City subculture and — this probably reveals something about me I’d rather conceal — the dingy little shops with their oddball collection of characters were some of the few places I ever felt at home in the four years I lived in the city. On particularly unhappy days, I’d slip into a parlor downtown, and enjoy the anonymous companionship of others staring intently at programs and talking horses and hoping for that one big win. “I liked to watch people come in,” Bill Barich wrote in his classic horseplayer’s memoir, “Laughing in the Hills”:
They were intent, blind to their surroundings, and they all looked terrific, at least until the first race had gone off. Optimism put a bloom in every cheek. Anything might happen, could happen, probably would happen, that was the notion being entertained at OTB.
No longer.
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Jessica Chapel writes and edits in Massachusetts. Railbird is a Thoroughbred horse racing blog published from June 2004 to July 2019. More / Contact
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