Hidden Handle - By Eric Mitchell

re: Hidden Handle - By Eric Mitchell

Ted Levis — Tue, 29 Jun 2010 16:04:15 GMT

I have read BH articles on the decline of the sport and handle etc. each week as I am an avid thoroughbred fan-it is my favorite sport. That being said it is getting increasingly difficult to stay interested for two reasons.

First, I have an account with Philadelphia Park which is grandfathered due to my state of residence, no longer can residents of MO obtain an account. But due to the inability of the racetracks and Philly Park to agree to takeout sharing I never know what track I can bet. So, I don't bet. Simple as that. It is turning me off and I don't want to spend time handicapping and find out this signal or that signal are not available today. So if the industry could get its act together and allow fans to bet then I think we would see handle grow. But until then fans like me will gradually lose interest. I have two good friends and we used to meet all the time on weekends to have fun and wager. No longer. I am sure we are not alone.

Secondly, the medication issue needs to be resolved. Different states different rules. Top trainers slapped on the wrist for violations and convicted cheaters like Patrick Bioncone allowed back in the game to train in CA but nowhere else. It is a joke.

Simply the industry needs to go drug free to be able to overcome the image ingrained in the public. I push the sport everywhere to anyone who has interest. The first question anyone asks me is: Is the sport fixed? What kind of sport can overcome this image? The answer is simple-None. Get the drugs out of the sport so a new marketing effort can begin and the sport can compete.

Thanks,

re: Hidden Handle - By Eric Mitchell

EJMitchellKy — Sun, 20 Jun 2010 23:36:38 GMT

Bruce, I cannot speak to the original source of the "If you don't know where you're going quote...," and I'll have to take your word that it was a favorite of Zen Master Ikkyu. But I have to believe that Kissinger was well aware of the original quote since it is one of the most often quoted sentences in Lewis Carroll's "Alice in Wonderland." Kissinger was an intensely logical person who seemed to be taking a jab at people who believed--regardless of their circumstances--that things would always just work themselves out in the end.

Kissinger also said: Intellectuals are cynical and cynics have never built a cathedral.

There is another quote from Carroll that I think also applies to the options the Thoroughbred industry has in front of it today to begin correcting past missteps, adapt to the changing entertainment market, and grow the sport.

"Door: Why it's simply impassible!

Alice: Why, don't you mean impossible?

Door: No, I do mean impassible. (chuckles) Nothing's impossible!"

— Lewis Carroll

Industry leaders cannot look at potential solutions and immediately think of all the reasons they cannot be accomplished. Change is possible if the will to implement it is strong.

re: Hidden Handle - By Eric Mitchell

barry k schwartz — Sat, 19 Jun 2010 19:47:38 GMT

I really hope someone examines take-out rates in this series as it is the single most important factor in driving handle. After lobbying state legislators and OTBs in 2001 NYRA was able to make a meaningful cut in rates. The next 12 months saw a $150 million increase in handle.We will never grow handle with 20++% rates. It amazes me that no one seems to address this issue anymore

re: Hidden Handle - By Eric Mitchell

rlm — Thu, 17 Jun 2010 22:19:34 GMT

Are the tracks being told the correct amount of money wagered by the ADWs in their specific areas. They should be getting a percentage of that handle and I don't believe anyone is auditing that money. I have tried to confirm and am told it's not for public release. Something is not right.

re: Hidden Handle - By Eric Mitchell

Elizabeth — Thu, 17 Jun 2010 21:14:47 GMT

I am no expert on the racing industry but I think that there is no interest because it is basically boring to go to the track. I have a horse website that is more interesting than sitting with nothing to do in between races. The chance of winning any instrument of betting is pure luck, in horse racing their is the added element of betting on a horse that goes lame. Besides I can sit in my living room bet on television and be more comfortable so why should I go to the track? Horse racing has to be made exciting again and I'm afraid that won't happen until another Secretariat comes along. The closest we've come is Barbero and we all know what happened to him.

re: Hidden Handle - By Eric Mitchell

claimer booster — Thu, 17 Jun 2010 17:20:35 GMT

The question is how to get people to the track. Racing always has been a sport where there is no skill level that guarantees even proble success. Experts are blantantly wrong many times and people's perception of the mystery of racing and uncertainty of a return makes the lottery or just plain gambling more attractive, and patrons can stay home or drive a few miles to a casino for that. If pagentry, jockey's stories, and horses aren't highlighted more, there is little hope of connecting the public to physical track attendance.

re: Hidden Handle - By Eric Mitchell

David — Thu, 17 Jun 2010 15:46:28 GMT

My quote of the day is "many involved in Thoroughbred Racing look at things the way they are and ask why . . . some even dream of things that never were . . . unfortunately, nearly all readily explain why not." If nothing else this business is a legitimate expert on the science of small thinking and articulating why change won’t work.

re: Hidden Handle - By Eric Mitchell

Bruce — Thu, 17 Jun 2010 05:48:03 GMT

Leaving aside the other important issues, the author's reliance on the Kissinger quote as a framing device overlooks Henry's own misappropriation and re-working of an axiom reportedly favored by Zen Master Ikkyu:

"If you don't know where you are going, any path is the right one."

re: Hidden Handle - By Eric Mitchell

dgrayone — Thu, 17 Jun 2010 02:54:02 GMT

Recently the San Antonio Express News printed an article on Retama Race Park in Selma, Tx. It appears our track will close live thoroughbred racing next year (2011).I'm not in favor,but, I can't stop them if no money is available. Texas horsemen need to make a stand to their politians or whoever to vote in slots at all race tracks. Just in case, maybe the Texas State Lottery could apply all race tracks to the Lottery System, like they did for Education System. Even a special lottery scratch ticket representing thoroughbred horse racing could be published, sounds like a good idea. Thanks, Go Texas racefans !!!!!

re: Hidden Handle - By Eric Mitchell

David — Wed, 16 Jun 2010 21:29:49 GMT

The math says about 78-80% of the people should be happy or at least revenue-neutral following each race. We all know that’s not entirely true any more than (about) 94% of slot players walk away winners. The dynamic of churn, average win payout and degree of difficulty makes for far more losers than winners. Ironically, I believe, the advent of account wagering has aggravated the problem. A visit to the track means being with friends and witnessing color, athleticism and pageantry. Moreover, most fail to audit purses and wallets even though they intuitively know there’s less than when the day started. With account wagering there is no escaping the black and white result of playing the horses. The graphic that illustrates withdrawals versus deposits is something you will not see reported by an ADW operator. In short, while the industry is smart to develop internet-driven channels, I fear the nasty secret may be revealed – betting on the horses is a losing proposition.

re: Hidden Handle - By Eric Mitchell

Bill Liberty — Wed, 16 Jun 2010 20:54:03 GMT

To say that track handle is porprietary may be in error, depending what state the track is located. I know in New York and here in Florida, handle is public record and the public has a right to know. If you call Calder or Gulfstream, they refer you to Louisville or Toronto. The public be damned.

re: Hidden Handle - By Eric Mitchell

Chris McConnell — Wed, 16 Jun 2010 19:14:36 GMT

There were several areas that need to be addressed in regard to the decline of the overall wagering of the horseracing industry.

The year on year comparison is correct, but to truly represent the actual reasons lie in further scrutiny.

Track closures is just one parameter... if tracks close and don't reopen, that revenue is lost. Weather is also important...loss of racing days affect that...is the total number of racing days declining. Just those two areas could show a large portion of the decline.

In regards to ADW reporting...every track knows exactly where each dollar comes from that is bet into their pools.

The question is the VALUE of that wager...

Racetracks that take wagers from different sources such as live track, OTB, ADW, Off-Track and simulcast wagers all have a different value for each dollar wagered and the percentage that goes to the track and whether the horsemen share in any and all of those wager.

The other factor is the proliferation of other gaming opportunities, especially tribal and regional casinos.

Understanding the whole landscape first will lead to a better and truer reason of the decline in wagering for the horseracing industry.

re: Hidden Handle - By Eric Mitchell

C Bea — Wed, 16 Jun 2010 14:33:05 GMT

Another example of where our Industry leaders have failed us! How can NTRA, TOBA, TRA, etc. help guide us if they don't even know where we are definitively?

Much like Congress in Washington racing industry leadership is blind and clueless and in desperate need of replacing.

re: Hidden Handle - By Eric Mitchell

rwwupl — Tue, 15 Jun 2010 20:30:11 GMT

Yes, the business model is broken,and we need full accountability with review authorization (CHRB)of all income for California Horse Racing...everyone must get their fair share,including purses, no deals off the books ,and unaccountable.

I will be reading this with interest,and thanks to Eric Mitchell and Bloodhorse.

re: Hidden Handle - By Eric Mitchell

Steven McCoy — Tue, 15 Jun 2010 20:03:05 GMT

You have already identified the problem. To quote, "no one knows how much money is collectively being wagered through ADW companies or how much U.S. handle is being lost to offshore bookmakers." What we do know is that patrons of racing who used to wager at their local racetrack now do so on-line, and the percentage of those wagers that flows back into the purse pools is less than for on-track wagers. And in many cases, the ADW companies use that difference to offer rebates to our former patrons and reduce on-track handle even more.

The ADW model was sold to us in the racing industry as a way of tapping into an expanded base of bettors. What has really happened is that wagering is likely to have remained no worse than level, but purses have declined because of the reduced percentage that the ADW companies pay to the purse pools. We in the Standardbred industry in Ohio believe that ADW's have been the scourge of live racing, not the saviour that they claimed to be.

re: Hidden Handle - By Eric Mitchell

Ken Woodall — Tue, 15 Jun 2010 19:30:22 GMT

Usefulness of knowing track details on how much total handle was recieved from each type bet by be slightly useful, but mostly for the track. Overall handle industry wide by type of bet would be much more useful. But a major reason for this and other secrecy is for the track, its owner, the local horsemen, the local community, and the state to keep local control of racing and to keep it fractionalized for supposed financial gain.

Unfortunately one of the myths of racing that "horsemen" buy into is that a financial, legal, promotional, and cunsumer fractionalization results in more money for the local track.

Protecting home territory as opposed to wider cooperation causes racing to lose ground yearly on a per capita basis in handle, following, patronage, public perception, and otherwise stronger control of legal and rules issues and enforcement.

And,i n my opinion, it is the perpetuation of some of the myths that surround the actual running of races that keeps some prospective new new patrons from "contributing" to handle!