Daily Racing Form article by Matt Hegarty on Slot Subsidies (Aug. 18,2011)

[4thehorses]

http://www.drf.com/news/slots-racetracks-who-are-top-performers

Slots racetracks: Who are the top performers?
By Matt Hegarty
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Racetracks that received subsidies from slot machines in 2010 generated on average only two-fifths of the betting that non-subsidized tracks generated even though they distributed nearly equivalent levels of average daily purses, according to unofficial statistics assembled by Daily Racing Form.

The statistics were developed for 28 subsidized tracks and 37 non-subsidized tracks in North America for 2010 only.

Gulfstream Park outside Miami was the leading subsidized track in average daily betting handle at $6.88 million, followed by Oaklawn Park in Hot Springs, Ark., ($3.26 million), Fair Grounds in New Orleans ($2.97 million), Woodbine Racetrack outside Toronto ($2.36 million), and Calder Race Course in Miami ($1.93 million). Average handle at tracks with slot machines was $1.28 million, about 40 percent of the average of tracks without slots, $3.26 million.

Woodbine was far and away the leader among subsidized tracks in average daily purse distribution, at $536,789, but its average handle was $900,000 less than the average handle at tracks without slots. The average daily purse distribution at subsidized tracks was $195,524 – at least half estimated to be coming from the subsidies – compared with an average of $200,177 at non-subsidized tracks, a difference of 2.3 percent. Average field size did not vary greatly, 8.48 horses per race at subsidized tracks and 8.02 at non-subsidized tracks.

Perhaps most tellingly, subsidized tracks generated an average of $5.77 in handle for each dollar of purses they distributed while non-subsidized tracks generated an average of $14.35 in handle for each purse dollar, a difference of 249 percent. The ratio of all-sources handle to total purses is one measure of a track’s betting handle, and the accompanying table on page 4 lists tracks by this formula.

DRF assembled statistics in three basic areas – field size, purses, and handle. Though handle figures are maintained by Equibase, the company declined to disclose the figures, citing a provision of its charter that characterizes wagering figures as proprietary information. Equibase is owned by a partnership of the Jockey Club and the Thoroughbred Racing Associations, a racetrack trade group.

DRF used a variety of sources, including state racing commissions, racetracks, and horsemen’s groups, and attempted to verify the handle data by using two sources for each figure. In some cases, DRF could only obtain one figure.

The 28 subsidized racetracks distributed $584.1 million in purses in 2010 compared with $420.7 million by non-subsidized tracks. The figure for subsidized tracks would have been higher if DRF included purse distribution at three tracks that did not neatly fit into the slots or no-slots categories. The three tracks were Monmouth Park, which used a one-time $19 million subsidy in 2010 to double its daily purses for an average of $657,662; and Tampa Bay Downs and Canterbury Park, which receive revenue from card clubs.

Story continues:
http://www.drf.com/news/slots-racetracks-who-are-top-performers

[Round Table]

Presents interesting facts and figures and draws interesting conclusions.  


Here is a way for the staes to make $$$.  Let anyone post an insurance bond, pay licensing fees etc., and file state taxes in return for a license to run a gambling casino or sports book out of their living/rec room. Of course they must keep a decent set of books, or else,  just like the casinos.

How do you think existing casinos and racinos and owners will react to that ?

[clockerbob]

http://www.clockerbob.com/chapter8.html


"The slot machines have absolutely given this industry a future in Delaware," said Charles Lockhart, the executive vice president of Cloverleaf Standardbred Owners Association, which represents Dover's horsemen. "Without them, there'd be no more racing."

     The draw of winnings in the upper 90S percentile range of coinage return to slot patrons seems lost on horse racing management. An expert slot patron can bathe in a return as high as 99% on a full pay video poker machine, and even more as a casino's slot club card member. The blinking, colored, lighted action whirls endlessly amid free drinks, short-shirted cocktail waitresses, free parking and no admission.

     Horse racing has a return of around 50% after a patron is roughed up for parking, admission, racing program, clockers, chartman, writers, handicappers, NTRA, stewards, individual tracks' hand-picked testing labs, racing mafia shake, federal take, the state's cut and mis-information. More of the days net winnings leaves through the informationally privileged owner-trainer-jockey parking lot (e.g.Valhol's Arkansas Derby, Cielo Canosa maiden win 8/13 at Del Mar) than the general parking lots in horse racing. In comparison, 100% of the days net winnings leaves through the slot patron's free parking lots.

[laurajean]

I had a dream last night where I went to the slots and it paid off in shredded mozzerella. 

[cubfan]

Speaking as an owner, we are most greatful that we received the 3% money. It's "wonderful" that we are racing for $200,000 per day now at AP vs. $150,000 just a week or so ago. Fact is, we were racing for $250,000-$275,000 3 years ago at AP.

Speaking to other owners, it seems to me that those who own several Illinois breds are happy with the added money and I would be as well if I went from $27,000 TO 33,000 in some of the races. However, let's face facts....those owning KY, IN or NY and CA breds are not as sold on the new purses since we can run in those states for much more.

So what's my point? WE NEED SLOTS AT OUR TRACKS...to provide incentive to BUY ILLINOIS BREDS and to keep our out-of-state breds at Illinois tracks.

Period.... End of the story!