JC / Railbird

Takeout

Why Not?

Steven Crist on extending the Pegasus World Cup concept:

The central idea of the Pegasus is to raise purse money from owners rather than through an extraction from the parimutuel handle. Horseplayers have been told for generations that they must pay an exorbitant 20 percent takeout on their wagers because of the need to pay purses as well as to staff and maintain a racetrack. Now, however, we have a rare case where the purse has already been funded.

So, why not eliminate the takeout on the race entirely, or at least slash it to a low, player-friendly rate such as 10 percent? That would make this a revolutionary race for the customers as well as the owners.

(I think I hear someone muttering, “to hell with the bettors.”)

The other Steve of the turf trade press proposes a Pegasus reality show.

Posted in Racing on June 3, 2016 / Tagged Gulfstream Park, Pegasus World Cup, Starlight Racing, Stronach Group, Takeout

Increased Purses, Reduced Takeout

Citing the success of their September 5 program, Suffolk Downs announced the addition of a stakes race, purse increases for Mass-bred stakes, and promoted reduced takeout of 15% for all wagers on the October 3 card.

Posted in Racing on September 12, 2015 / Tagged Mass-Breds, Purses, Suffolk Downs, Takeout, Wagering

Saturday’s Suffolk Return

Live horse racing returns to Suffolk Downs this Saturday, the first of three days scheduled this fall at the East Boston track, with a 13-race card worth $507,500 in purses that drew 111 entries. One race is over hurdles, five are on turf, three are Massachusetts-bred stakes, and two are written for horses who started at least once at Suffolk Downs in 2014. First post is 12:30 PM ET.

Horses with local connections fill the fields — a full 77 starters are state-breds, ran at the track last year, or are owned or trained by familiar names, including Jay Bernardini and Bobby Raymond. Last year’s leading rider David Amiss is back, as is jockey Tammi Piermarini, who has 10 mounts, including for trainers Christophe Clement, Gary Contessa, and David Jacobson.

In the state-bred stakes: 2014 Rise Jim winner Victor Laszlo returns to defend his title, as does 2014 Isadorable winner Doublicious in that race. Plausible, winner of the 2014 Norman Hall, starts in the African Prince.

The Massachusetts Gaming Commission approved on Thursday a reduction in Suffolk Downs’ takeout rates. All wagers on the October 3 and 31 cards — but not on this Saturday’s card — will be 15%, down from 19% on straight bets and 26% on exotics. Matt Hegarty raises the possibility that simulcasting sites may balk at the drop. “It’s certainly a concern,” Lou Raffeto told him:

… when asked whether simulcast sites will bite the bullet. “I think they will, because it’s in the best interests of the horseplayers. And really it’s not like we’re Saratoga or Del Mar, running all summer. It’s two days. It shouldn’t be a big deal.”

With luck, this little horseplayer-friendly experiment will goose some interest.

Posted in Racing on September 4, 2015 / Tagged Horseplayers, Suffolk Downs, Takeout, Wagering

Pricing

Tom LaMarra on simulcasting fees and Churchill’s recent takeout hike:

I’m no math whiz, so correct me if I’m wrong. In the case of Churchill, if its host fee remains the same, a rebate shop and its customers get to keep the extra 3 percentage points when the exacta takeout goes from 19% to 22%.

If you operate a rebate shop or are a large importer of simulcast signals, higher takeout is money. That may explain why racetracks, rebate shops, and [ADWs] don’t complain about 30% trifecta rakes: If they pay the sender 3% for the signal, there’s 27 cents per dollar to play with before taxes.

Matt Hegarty on how those cents might get shared:

If simulcast rates do not go up at the same rate as the takeouts, then some players may not feel the full impact of the hikes. Many account-wagering operations, including Churchill’s mammoth twinspires.com and an offshore site the company bought several years ago, offer rebates to players, and some sites may elect to forgo the additional revenue to increase the rebates to their players on the Churchill signal. Many rebated players, including those who use automated systems employing algorithms to determine their wagers, are highly sensitive to takeout rates.

Posted in Industry on April 16, 2014 / Tagged Business, Churchill Downs, Handle, Price Discrimination, Rebating, Simulcasting, Takeout, Wagering