Youbet/TrackNet: Bettors Shafted/Trouble brewing

[cmorioles]

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.

[rdgamblr]

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 -

[SniperSB23]

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.

[Scav]

Originally Posted by SniperSB23

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.

[Scav]

Originally Posted by rdgamblr

“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”).

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

[sumitas]

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