Cali tracks get free hand to tinker with takeout..
 

This story emerged late Friday... Very problematic...


California law allows takeout increase
By Matt Hegarty

http://www.drf.com/news/article/108410.html

California Gov. Arnold Schwarzenegger signed a bill on Friday that would allow racetracks in the state to seek approval to raise takeout rates for any bet to up to 25 percent of the handle, according to state records.

The bill opens up the process by which takeout rates are set in California, gives racetracks the opportunity to dramatically increase existing takeout rates, and allows the racing industry to petition to redistribute portions of the takeout, according to officials. Under the legislation, any changes to the takeout rates or the way the takeout is distributed must be approved by the racetrack, the state's horsemen's association, and the California Horse Racing Board.

Reminds me of an old Three Stooges bit:

"There's a hole in the boat!"

"Hey, let's shoot holes to let the water out!"

This sport is so hopelessly dumb that it really is...hopeless.

Extremely problematic to people who still play those circuits and aren't getting rebates.

Steve,

I am sure you were re-assured just as I was when the track official said they were not looking to raise takeout, track officials care about the very people who provide the money that makes the industry survive and would be completely honest with us!

yea, I am sure no one else would think of making a move like this if someone sets the precedent.

Ostensibly, it appears that the bill is more for allowing re-distribution of existing takeout generated money as much as anything... California has low takeout rates as Hegarty points out (@15.5% on straight and @20.75% on exotics).

The CHRB would have to approve any actual increases that a track/fair/association may want... And while their track record is awful, you would sure hope that they would be made to understand the lunacy of wholesale takeout increases right now on their already beleaguered business.

I would vote with my wagering dollars. Higher takeout, less play.

Now here's an idea.....handle is down so let's up takeout to offset the losses. The only people hurt are those damn gamblers.
The wrong measure at the wrong time with impact felt by the wrong people....their customers.

Exactly doc, but look at states raising taxes and fees at the same time. Gross.

I'd prefer that this conversation not to turn into a pitchfork march on the 'ol Frankenstein place, (as is going on elsewhere.. ;) )...

But obviously, the concern here is that the CHRB, which has historically shown itself to largely be a tool of track management, simply is powerless to do the right thing. If the tracks are smart about it and sensitive to the realities, there probably is room to achieve whatever goals they are hoping for with this, while potentially GROWING business. That is of course wishful thinking, but I'm a wishful thinking kind of guy..

Makes perfect sense to me.. Might as well finish what the Cal Racing Board started.. Belmont, Philly Park, and Woodbine are looking for good Owners, Trainers, and Horses.. All are welcomed..Has Santa Anita announce a closing date or are the mules, quarters and paints lookin to fill the void?

he is right. at this rate there might not be racing out there for long. maybe that why the breeders cup is there again, its the last time. (or its a partnership to try to salvage each) i hope NYRA learns from these morons. keep the tracks dirt, takeout should be REDUCED. the breeders cup will be next to fold if it does not wake up. del mar can't fill a card and has to cut days. saratoga has trainers and owners fighting to get in(but the poly tracks are safer.....lol). they did great things for cali racing with their great ideas (yeah right). the nicest weather in the country and they put in poly thats 130 degrees at race time, its just brilliant. i heard hollywood is having an open house to pick your lot for a townhouse. that should tell you how much i bet there and if you think i'm the only one you are nuts!

Again, it may benefit everyone to read some of the details involved in this. I know it's more fun to call track management, state governments and racing regulatory bodies fools and morons, but let's all try to pretend they may be people looking to improve situations...

A few more tidbits about this bill and what it was intended to do from people I spoke with in California... This measure apparently was designed to assist the Fairs first and foremost. They were receiving support from the state via agricultural-related budgets, and that money is disappearing. Allegedly in the $30-40 million dollar range annually. By being able to ask CHRB for approval of various re-applications of revenue from takeout and maneuvering of some takeout rates, the fairs are hopeful they can 'find' that soon to be missing revenue. Otherwise, they may not survive.

As for the DMR, GG, HOL and SA, they get the option of trying to change some currently state-mandated distribution of revenue towards things they need including capital improvements. The state has percentage directives that the bill makes easier to change.

The sky is falling crowd may want to wait until something actually falls before putting on the tinfoil hats. California has some of the lowest takeout rates in the country as a reminder. There may be possible positives from this bill, as hard as it is for anyone to conceive of that.

Oh I agree Steve. I'm simply saying if they do raise takeout, it is a negative. I'll wait and see. But I don't play certain places based on the take.

My comments are directed to those that are eager to expect the worst.

But what if they were to drop WPS takeout to 14% from 15.43%; drop 2/3/4 horse exotics to 18% from 20.18%; BUT raise P3/P4/P6 to 24% from 20.18%? That would be felt less by players on the multi race side but still raise revenue and perhaps also raise churn on the reduced takeout wagers? Is that a viable approach to test the waters on reduced takeout?

New York and Illinois take 25% on P3-P4... I don't hear any screaming... I also don't hear a peep of praise for California having been kept at 20% all this time on those wagers...

The bill is designed to provide flexibility. The basics of the existing takeout system in CA isn't immediately affected. Is there potential for everyone involved to do the wrong thing? Yes.. Does it have to be assumed? No..

1. Given racing's track record why should I expect anything but the worst?
2. I know your using a hypathetical, but do you honestly believe they would lower takeout and raise others to offset that?
3. You dont think serious players in NY are upset with the 25% take? I certainly have always heard loud protest when New York raises the take out, I am surprised you don't recall those discussions.
4. Yea it is more flexibility, someone that is not comnforting to me, frankly because the State of California, the track owners, and the CHRB in the majority of cases give me little reason to think it has a positive outcome.

I guess I would compare it to the current discussions about using the "nuclear option" in the US Senate to bypass normal procedure, until it happens no ne should be concerned the loopholes are in place that it could happen? Sorry, if there is a problem I think its best to voice your concerns before you have to take it in the shorts.

If they don't get dirt back on the main tracks @ SA and DM, it won't matter what the takeout policy is.

Like Crist said in his latest DVD, "When it comes to takeout, it's heading in one direction: up."

Steve i'm primarily exotics/multi race bettor and i love playing CA tracks b/c the takeout is lower, what you suggest here would put CA tracks in line with everyone else. Is there anyway you can get somebody from CHRB on ATR to discuss this? I believe it would help to here their side.

I will have Ron Charles (SA), Joe Harper (DMR) and Jack Liebau (HOL) on between now and the BC. Perfect chance to address this while I broadcast from Santa Anita next week.

CHRB less of a concern really. They rubber stamp whatever the track managements tell them too.