Quote:
Originally Posted by ScottJ
Steve,
You have been a voice of reason and passion amongst those in the racing industry for years. Eventually however, the time comes when a solid stance needs to be taken to send a message into the sport's leaders and their board rooms.
The Churchill Downs take-out rate increase boils down to a question of what is more important, [a] or [b] :
[a] The visibility and importance of the Kentucky Derby to the health of the game.
[b] Keeping the remaining players in the game (outside of racino/casino subsidies) engaged by providing the best possible rates on take-outs.
At this point, there are no longer any sacred cows in the sport that cannot be sacrificed for the long-term survival. If the Kentucky Derby were to continue without any audience ([a] over [b]), the event would not matter. Conversely, if the bettors continued to support events with lower takeouts ([b] over [a]), other major racing events can and will emerge.
Following this second path, perhaps the Triple Crown, a salute to an era gone-by, will be seen as what it is : a collection of three random races at three random racing associations. To underscore the point, why should California not include a triple crown race? Or Florida? Or Arkansas? If the Breeder's Cup can be called upon for a rotation, why not the Triple Crown itself.
My point is simple. With these increased rates, I will pass the Derby - first time in decades. I will pass on all CDI events - period. There comes a point when I need to think about my pocketbook first and send the message with my $100.00-worth of Derby wagers.
Now, to your role : Please push the envelope on this issue with your radio show and your connections. It is time that these continued rake issues gain more visibilility - and challenges - from the market.
Sincerely, Scott
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Scott,
Appreciate the passionate response to the situation but as Chuck laid out, this isn't the usual takeout case scenario. There's a much bigger backdrop to this regarding Churchill's long term interests in Louisville specifically and their unhappiness with the gaming atmosphere. They are a corporate entity that has made many successful business decisions that has resulted in a substantially enhanced value for their shareholders and that's their appropriate mission.
The state of Kentucky has failed repeatedly to deliver on their promise of an enhanced gaming opportunity for Churchill, Ellis, KY Downs, etc., and this is Churchill's message to Frankfort. It isn't dissimilar to how they demonstrated to the state and city they could take or leave Breeders' Cups when officials fully expected them to bid and host in 2010/11.
Frankly, they should be frustrated. Steve Beshear got himself elected on the platform of expanded gaming in 2007 and then could not harness the political power needed to beat out of state casino interest muppet David Williams. Meanwhile, even Ohio, which seemed utterly opposed to any gaming expansion was able to leapfrog Kentucky.
This increase sadly puts Churchill on a par with industry averages when they were below which is too bad. As with any 'price increase', as a consumer we have options to shop elsewhere. Beef prices have hit all time highs. Are we going to stop eating it altogether? Eat it less? The choice is ours/yours.
As we saw today with Santa Anita bringing back the rolling doubles, we can get messages across and get the desired response. Not only are the rolling doubles back, but they are retaining the lower 18% take. Churchill believes they need to do this to achieve longer term goals. They are fully aware of how it was sure to be received. Remember that there's been as many additions of lower take bets like the P5's of late as there have been assorted increases like this one.