slots the magic bullet, and a bit of waxing poetic

[ShadowRoll]

Originally Posted by Cannon Shell

SR
I have no idea if racing has expanded or shrunk its fanbase over the last 10 years or so. I'm not sure how to even measure it. As I have stated before, racing "fans" have a much different relationship to our sport than other fans have with mainstream sports. Being that we our main (only?) stream of revenue comes through wagering, it makes more of a gambling hybrid than a traditional sport. The fact that less people are coming out to the races is not a new or surprising trend. But handle nationwide has been pretty consistent over that time. Obviously many people have moved to betting using account style, offtrack betting. I recall a poll done by ESPN a year or so ago that said that 25% of the population had at least some interest in horseracing which I thought was high and think they quoted it as being up from like 11%. Of course they were starting to do more horseracing so maybe they doctored the numbers? I think just the fact that ESPN wants the Breeders Cup and more big races leading up to it is a positive sign, but thats another topic.

Of course I as a horseman I am concerned that the racino tracks will/are focusing much of their marketing efforts on the slots. But I also recognize that because of the tremendous competition for the gambling dollar, that I would rather deal with greedy racetracks focusing on making money from slots than a closed track with zero dollars for purses. Of course if the slots tracks in conjunction with the states would make a concession and lower the takeout to a reasonable rate, I believe that handle on the races would surge, not in a small part due to the fact that the players simply would have more money in their pockets. I would trade all the marketing in the world for a 50% reduction in takeout.

The possibility that racinos will move to eliminate racing altogether is a possibility but unlikely for the reason that it would bring them a lot of grief and lawsuits. It is simply easier to subsidize racing than eliminate it.

I believe that Penn National going private after the takeover especially in light of the possibility of a PE Blackstone tax increase and all the fallout over it, may take a while before things are different.

I am always skeptical of stories like this that seem to have no general public interest other than to try to sway opinion by trying to paint a picture using half the canvas.

A few things: you make some very good points, especially regarding takeout reduction. It would be an interesting experiment but I doubt anyone has the balls to implement it. As a fan and a gambler, primarily, and not so much as someone involved in the business (except, of course, with SWLY), I am very concerned with fan base rather than just total handle. Fewer gamblers with the same overall handle probably means better informed gamblers, which of course means tougher competition during my occasional weekend at the park, as well as less people to commiserate with when I lose.

As for Penn National, we'll have to see. I've been buying shares for years but I think that gravy train has reached the end of the line for small-time investors like me. I'll vote in favor of the takeover and then whatever happens happens.

You seem very skeptical of the media in general (re your comments about ESPN as well as the Sun). As someone with an undergraduate degree in journalism, i have to say that...I agree with that sentiment completely. I assume you exclude from your skepticism people like Byk, who has proven himself to be a paragon of integrity. (I know it's a heavy responsibility, but remember, Steve, that when I hear news on your show, I assume that it's from God's mouth to your ear).

Finally, let me say that when I first read your reply above, I thought you began it with the word "SIR", before realizing that you wrote "SR", and I nearly spit my drink out my nose.

[Cannon Shell]

Originally Posted by ShadowRoll

A few things: you make some very good points, especially regarding takeout reduction. It would be an interesting experiment but I doubt anyone has the balls to implement it. As a fan and a gambler, primarily, and not so much as someone involved in the business (except, of course, with SWLY), I am very concerned with fan base rather than just total handle. Fewer gamblers with the same overall handle probably means better informed gamblers, which of course means tougher competition during my occasional weekend at the park, as well as less people to commiserate with when I lose.

As for Penn National, we'll have to see. I've been buying shares for years but I think that gravy train has reached the end of the line for small-time investors like me. I'll vote in favor of the takeover and then whatever happens happens.

You seem very skeptical of the media in general (re your comments about ESPN as well as the Sun). As someone with an undergraduate degree in journalism, i have to say that...I agree with that sentiment completely. I assume you exclude from your skepticism people like Byk, who has proven himself to be a paragon of integrity. (I know it's a heavy responsibility, but remember, Steve, that when I hear news on your show, I assume that it's from God's mouth to your ear).

Finally, let me say that when I first read your reply above, I thought you began it with the word "SIR", before realizing that you wrote "SR", and I nearly spit my drink out my nose.

Thank you, sir!

[Port Conway Lane]

Thank you all. Very informative and I haven't read the article in question. I recall 6-8 years ago as I was standing in the admissions line at Laurel the slot topic came up and I was all alone in my viewpoint that it made no sense to offer competition for the gambling dollar. After listening to the viewpoints of others I was swayed slightly there could be some positives. As time went by I became more adamant that Maryland needs slots to keep up with the nearby states.

What has been discussed in this thread made me realize I've been remiss. How often has any horseplayer reading this had a casual conversation with a stranger and the topic of horseracing comes up and the stranger replies "Oh I've always wanted to go to the horseraces but I don't know anyone or anything about it."

Well it's happened to me often enough and I've never taken the time to pursue the opportunity. What better way to bring fresh money into the game and at the same time share a passion that these people may never otherwise experience.

The next time opportunity knocks I'll be there to answer and I'll reflect back to this thread and thank you again.

[phystech]

A very interesting Letter To The Editor written to the Baltimore Sun:

http://www.baltimoresun.com/news/opi...pinion-letters

You'll need to page down to the bottom - entitled "Slots shift dollars to racetrack owners".

Written by a former CFO of the Maryland Jockey Club and acting CFO of Magna.

There's got to be some rumblings about a special legislative session being called in Md to address the slots issue via the state's structural deficit that has caused this recent Balt Sun story. Makes me think it's becoming more likely that one will be called by the end of the summer.

But even if one is called, slots are far from a done deal. If you are interested in reading some input/discussion on them from the Balt Sun's talk forum, go here:

http://www.baltimoresun2.com/talk/sh...d.php?t=105867

Growing sentiment is why should a dying industry be propped up by slots just so a foreign company can be given a financial handout by the taxpayers of the state. I've argued for slots for a long time but it is getting increasingly hard, if not impossible, to support Magna and DeFrancis being handed a huge windfall.

[Cannon Shell]

Originally Posted by phystech

A very interesting Letter To The Editor written to the Baltimore Sun:

http://www.baltimoresun.com/news/opi...pinion-letters

You'll need to page down to the bottom - entitled "Slots shift dollars to racetrack owners".

Written by a former CFO of the Maryland Jockey Club and acting CFO of Magna.

There's got to be some rumblings about a special legislative session being called in Md to address the slots issue via the state's structural deficit that has caused this recent Balt Sun story. Makes me think it's becoming more likely that one will be called by the end of the summer.

But even if one is called, slots are far from a done deal. If you are interested in reading some input/discussion on them from the Balt Sun's talk forum, go here:

http://www.baltimoresun2.com/talk/sh...d.php?t=105867

Growing sentiment is why should a dying industry be propped up by slots just so a foreign company can be given a financial handout by the taxpayers of the state. I've argued for slots for a long time but it is getting increasingly hard, if not impossible, to support Magna and DeFrancis being handed a huge windfall.

I guess Franks severance package was a little short. I love when they break out the old "it going to cost the taxpayers money" reverse-psychology. If the license it "worth" $1 dollar and they sell it for .50 then the naysayers say they lost .50 instead of saying that they gained .50 which is the real world truth. Imagine if Michigan offered huge tax incentives to foreign automakers to move there? There would be outrage! But when gambling is concerned, the tracks and their long years of creating jobs and providing tax revenue to the state are forgotten.
Someone is going to make a windfall off of the project. Like them or not, Magna has made a big investment in Maryland racing. And frighteningly enough, they are probably the only hope MD has.

[SentToStud]

Originally Posted by Cannon Shell

I guess Franks severance package was a little short. I love when they break out the old "it going to cost the taxpayers money" reverse-psychology. If the license it "worth" $1 dollar and they sell it for .50 then the naysayers say they lost .50 instead of saying that they gained .50 which is the real world truth. Imagine if Michigan offered huge tax incentives to foreign automakers to move there? There would be outrage! But when gambling is concerned, the tracks and their long years of creating jobs and providing tax revenue to the state are forgotten.
Someone is going to make a windfall off of the project. Like them or not, Magna has made a big investment in Maryland racing. And frighteningly enough, they are probably the only hope MD has.

Imagine indeed! Granholme and the Michigan legislature have been actively recruiting the Japanese automakers. Toyota is opening a new tech center near Ann Arbor that will employ 500. Guess what? The state of Michigan sold them the land. The deal is heavily tax advantaged. Hyundai and Mitsubishi are building a $400 Million plant just outside Detroit in a venture with Daimler Chrysler. Guess what they got? $100 Million+ in tax incentives.

[Cannon Shell]

[quote=SentToStud]Imagine indeed! Granholme and the Michigan legislature have been actively recruiting the Japanese automakers. Toyota is opening a new tech center near Ann Arbor that will employ 500. Guess what? The state of Michigan sold them the land. The deal is heavily tax advantaged. Hyundai and Mitsubishi are building a $400 Million plant just outside Detroit in a venture with Daimler Chrysler. Guess what they got? $100 Million+ in tax incentives.[/QUOTE]
Just as a venture between a racetrack and casino to create a racino should be welcomed, not criticized.