Youbet/TrackNet: Bettors Shafted/Trouble brewing
 

Youbet.com, Inc. (NASDAQ:UBET - News) said today that unless TrackNet Media drops its requirement that Youbet forego other premier races to carry the 2007 Kentucky Derby and other TrackNet controlled content, customers of the industry's largest ADW will not be able to use its website or phone facilities to wager on the first leg of this year's Triple Crown. TrackNet Media is a joint venture of Churchill Downs, Inc. and Magna Entertainment Corp.

"Instead of the broader, more inclusive distribution formula the industry has been promised, TrackNet presented us with an unreasonable either-or scenario," said Youbet CEO Charles F. Champion.

"To carry this year's Kentucky Derby and its other content, TrackNet wants us to forego races from, among others, Aqueduct, Belmont, Saratoga, Del Mar, Keeneland, Oak Tree at Santa Anita, Saratoga Harness, Turfway Park, Turf Paradise, and Los Alamitos.

"It ought to be obvious to everyone with a major investment in horse racing that we should not have to choose one content group over another when we are prepared to pay fair prices for both," said Champion. "Under these circumstances, we think the industry needs to assess the ramifications of the two most dominant content providers in our business coming together to dictate content alignment and economics by forcing choices on us and others that are sure to limit competition, thwart innovation, frustrate customers and stifle growth."

Can you copy the link for this?

Thanks.

NT

this is directly related as well to Ameritab's decision last week to go ahead and get the derby but lose all those tracks........take the derby, i will walk to my OTB and bet, but I dont want to lose EVERY track that runs this summer. Good decision by Youbet but they may pay for it.

Here we GO....

customers/players be damned....apparently:mad:

Time to get multiple accounts juiced up....my wife will be thrilled...

I am just going to stop gambling, my handle alone will make all these f'ers rethink their practices. I doubt their are many doing $100 straight exactas at CAL-EXPO :)

IN all honesty, this looks like a situation where it will get real tense within the AWD industry and just explode and some serious discussions will happen once companies start losing out.

Just means I can go to trackside and talk to Bill Downes Sr more often, which is a real treat.

Brutal news.

Customer screwed...again.

Bettors get the shaft again!!
 

http://news.bloodhorse.com/viewstory.asp?id=38575

CD and Magna are strong arming already

you bet...no you dont...

I don't think NY racing needs Magna or CD.

yea just the big guys trying to muscle away business.:eek:

Last time I was on the Youbet site (and it was a long time ago)
their attitude was basically

USE IE (Internet Explorer)

or GET LOST


now, isn't this IRONIC

boo, hoo, hoo, Youbet

there's always a BIGGER BULLY around

yep the fans and players look to be getting the we don't care about you:mad:

Just plain stupid. Handle drives the game. Making it difficult to play helps no one.

The next year or two is going to be really interesting when it comes to this game...

I picked a good time to live in Europe. I can tell you I won't EVER be opening a bunch of accounts to play all the tracks.

Tracknets response
 

TRACKNET MEDIA RESPONDS TO YOUBET ANNOUNCEMENT
ARCADIA, Calif., / LOUISVILLE, Ky. (April 23, 2007) - Scott Daruty, chief executive officer of TrackNet Media Group, LLC (“TrackNet Media”), today responded to the announcement of Youbet.com (“Youbet’), an advance deposit wagering (“ADW”) company based in Woodland Hills, Calif., that negotiations between Youbet and TrackNet Media have reached an impasse.
“Since its inception, TrackNet Media has sought broad distribution of its horse racing signals through a wide variety of wagering outlets and platforms, including ADW companies not affiliated with Churchill Downs Incorporated or Magna Entertainment Corp., the joint owners of TrackNet Media,” said Daruty. “We believe ADW companies should differentiate themselves based on innovation, customer service, customer satisfaction and the quality of their wagering platform - not based on exclusive content agreements. Unfortunately, for almost a decade our industry, and the growth of ADW, has been encumbered by exclusive content arrangements held by Television Games Network (“TVG”).
“In order to achieve our goal of broad distribution, TrackNet Media is seeking an agreement with TVG that would provide for a content exchange between TrackNet Media and TVG. Such an agreement would, subject to receiving appropriate horsemen and regulatory approvals, allow all responsible, regulated ADW companies to offer all major U.S. racing content. We strongly believe that such an arrangement is in the best interest of the racetracks, horsemen and wagering public. We are awaiting a response to our proposal from TVG.
“The Youbet management team is aware of the fact that we are seeking a content exchange agreement with TVG. Nevertheless, Youbet elected today to issue a public statement that mistakenly accuses officials from TrackNet Media and its joint owners of failing to keep their word to horsemen, customers and the industry as a whole. Youbet is the only large national ADW provider with a sublicense agreement in place allowing it to accept wagers on the TVG exclusive content on a going-forward basis. Youbet now seeks the right to accept wagers on TrackNet Media content as well - leaving Youbet as the only national provider able to offer its customers all major U.S. racing content. Such an arrangement would put all of Youbet’s competitors, including TVG, AmericaTAB, XpressBet and the yet-to-launch TwinSpires account-wagering service at a disadvantage, and it would unfairly penalize customers of those ADW platforms who want access to a broad range of content.
“We sincerely regret any inconvenience the present impasse between TrackNet Media and Youbet causes racing fans. However, we believe the ultimate solution we are trying to achieve is in the best long-term interest of the industry. To that end, TrackNet Media remains committed to its efforts to make all horse racing content available to all responsible, regulated ADW platforms on fair, market-based terms.”
TrackNet Media Group LLC (“TrackNet Media”) is a venture of North America’s premier horse racing and entertainment companies, Churchill Downs Incorporated (NASDAQ: CHDN) and Magna Entertainment Corp. (NASDAQ: MECA; TSX: MEC.A), which each holds a 50-percent interest in the company. TrackNet Media sells horse racing content from its stable of racetracks to a variety of domestic and international wagering outlets, including racetracks, casinos, off-track wagering facilities, and advance deposit wagering companies. TrackNet Media also purchases horse racing content from other content producers for distribution to its member racetracks and to advance deposit wagering platforms, including XpressBet Inc. and TwinSpires. TrackNet Media employs the highest standards of wagering security and integrity when licensing horse racing content to third parties to reduce the chances of signal piracy and ensure content producers receive the compensation they are due. TrackNet Media is headquartered in Louisville, Ky., and also has offices in Arcadia, Calif.
- END -

I like it how they try and make it sound like they are being victimized and then in the end admit that really it all comes down to them not wanting to allow Youbet to have an advantage over them and that they are willing to make the industry as a whole suffer in order to not allow Youbet that advantage.

Which is smart business, why would you allow your competition to hold an advantage.

I get the feeling that TVG will be taken over by twinspires.com. Youbet is the largest ADW and they have some power. When TVG tried to strong arm them, Hawthorne told them to GFY and said your handle sucks, so I will sign an agreement with YB. What do you think when tracks like Del Mar and Belmont start losing handle? They are going to tell TVG/Tracknet to stop F'n around and get something done or lose our business relationship. Keeneland is the same way. Not having Youbet in their pools will hurt them significantly.

Short term, this ends up f'n the bettors, but long term, I think we will end up with 3 providers and all of them will have the same tracks, and they will differiate by what they provide as far as software.

This is the smartest thing that he said.

To think positive about this, do you think that Tracknet was possibly just trying to eliminate some of these exculsive contracts to end up leveling the field. I think the above quote signals that

And you think these turkeys will allow coolers and such into the NY tracks. They'll shake down the fans for every last dime and kill the attendance.
http://tcm.bloodhorse.com/viewstory.asp?id=38568

Strong-arm tactics
 

Surprised no thread has mentioned this. From the TB Times Today:

The contract extension [of a subsidiary] comes just one day after Youbet went public with its dispute with TrackNet Media, a new media management
and content sharing venture between Churchill and Magna Entertainment
Corp.
TrackNet wants the advance deposit wagering company to drop
all content sublicensed by Television Games Network (TVG)—including
the New York Racing Association, Keeneland, and Oak Tree
at Santa Anita—in exchange for Magna and Churchill content.
If the two companies do not reach an agreement, Youbet will not
offer wagering on the Derby.

Some have already capitulated - from my favored site, Brisbet:

Effective Thursday, May 3, there will be changes to the AmericaTAB racetrack lineup. These changes are due to a recent decision to enter into an agreement with the newly-formed TrackNet Media Group LLC, a joint-venture between Churchill Downs, Inc., and Magna Entertainment Corp. AmericaTAB recently became the first account wagering company to sign a content agreement with TrackNet Media, making it a preferred TrackNet partner and giving our customers access to wagering on all Churchill Downs and Magna racetracks.

At the time of this writing, effective on May 3, the following racetracks will not be available for wagering through AmericaTAB for the month of May:

Through May 31, 2007:
Domestic: International:
Calder Race Course Japan Racing
Emerald Downs
Hollywood Park
Arlington Park (until early Aug.)
Los Alamitos
New Jersey (Med, Mth)
New York Racing Association (Belmont Park)
Prairie Meadows

In other words, no TVG contracted tracks.

Yeah, I'm still steaming from that e-mail from Brisbet last night. Hadn't been following this that closely so didn't realize they were involved, thought it was just a Youbet/TVG thing. Is there anywhere else that give free past performances for tracks you wager on? That is what I really loved about brisbet. I'm really considering pulling everything out of my account and only betting on track until they straighten this mess out. I wish Congress would step in and tell them unless they straighten this out that they will lose their exemption from the internet gambling ban.

I'm not happy -- Brisbet is what I use and I had fully planned on sitting around Derby Day and playing Arlington's opening weekend. No dice now.

This steams me to no end, these all or nothing tactics being used.
Screw and annoy loyal players in a stupid attempt to exclude other tracks.
Dolts!

Wonder what would happen if CDI/Magna had the bomb? YouBet and Brisnet headquarters would be effed.

Interesting that's it's only for one month. Is that the deal - we'll give you the Derby and you dump these racks for the month? Wierd...

Trying to let us down easily, I think. They will continue to negotiate, I presume, but no promises.

Magna, on its own, was the first to do the 'exclusive' thing, as I recall - when it launched its own betting site, it wouldn't let anybody else on-line get their signal. Several years ago. TVG's contracts, I think, were a response to Magna's tactic. Magna wasn't big enough to make it stick back then. But now it is, after the alliance with CD (which has disppointed me - I thought their management was more dedicated to the fan than Magna.)

Just makes me go to the most beautiful track in America more now, which means less firing because I will have too much going on, which means more money for Scav

These ADW's must not like compulsive gamblers

i haven't figured out what i'm going to do yet. have to see how it shakes out.
but my goal will be to keep my wagering dollars away from those that seek to limit choices. i won't forget this strongarm play just before the derby.

So after reaping the benefits of having exclusive wagering on May 5th,
their not going to have Hollywood, Belmont or Arlington (amongst others) for the rest of the month (and possibly, entire summer)?

Talk about selling your soul.

You guys have to realize it isn't just because of the Kentucky Derby, it was just tactical. Ameritab wouldn't have access to Calder/Arlington/Churchill/Magna if they didn't do this agreement. Would you rather not have ALL those meets and the TVG tracks? I think not.

As far as Belmont is concerned, I think you will see that fly back to everyone real fast, no way those NY boys are going to handle a decrease in handle because of political BS.

If there was some sort of unity between people that wager, the tracks, online companies, etc... would all come to an understanding much more quickly. Its too bad people cant hold back from betting at one track or thru one provider for a week. The pocket hurting has a beautiful way of making things work out.

And it does not seem like a great sign that, with two days to Opening Day at Churchill Downs, that Twin Spires site is still not up and running.

That is just downright dumb by them, Youbet used to CRASH all the time on big days, (not anymore)...Do they think they are just going to be running smoothly on the highest wagering day of the year...crazy thinking going on right there by CHD

They're dreaming if they think at this late date to get it up and running and people converted over and learn to use their interface etc. It takes time.
Screw them, for betting the derby i'll use brisbet since they sold their soul.

after that i'll be loyal to youbet. at least they had the balls to stand up to this nonsense.

Used to have to bet way early just to make sure you could get 'em in.

I'm sure TS is Beta testing and with a handfull of people and everything is smooth, but come Derby Day, watch the crash happen....

They should have been up and running for a month or two before the Derby. They are arrogant and naive to think they can launch this thing Derby Week.

I'll be at the 2nd most beautiful track on Derby Day, because I'll be damned if I am going to give Magna my business and juice my Xpressbet account to play Churchill.

I just got off the phone with XpressBet. That place is an ADVENTURE.

They told me that I need to reactivate my account (ok, I understand this) and that for the first three months, I won't be able to withdrawal via electronic check until I become a VIP member (1,000 wagered a month, um that is like 5 wagers for me). She had to put me on hold three times until she could tell me if they had a reward program.

DOWN GOES THE AWD industry......