Please Close Delaware Park

[Scav]

Originally Posted by mik9872

Please but this grand old track out of its misery. Today, a new low. FIVE races. One of the Arabian

This is pretty hilarious, you would think that it would cost more to open up when run 5 races.....

[blackthroatedwind]

Originally Posted by Scav

This is pretty hilarious, you would think that it would cost more to open up when run 5 races.....

They are open for slots regardless.

Delaware is a beautiful track and a great place to spend the day. That being said, I have to wonder how much they are now falling victim to their specific years old program of essentially running a closed club for the few trainers that populated the place. They have basically discouraged outsiders, denying stalls or awarding few stalls to some who wanted to race there, in an attempt to distribute the purses to a very few. Many believe this was a somewhat backroom deal to appease the local horsemen so that they would not campaign for a bigger or better cut of the slot dollars through purses.

You reap what you sow.

[Scav]

Originally Posted by blackthroatedwind

You reap what you sow.

Unfortunetly that seems like the industry motto right now

You have been around a long time so you gone through bad and good within the industry, what is your opinion on what is going on with the ADW mess and Tracknet???

[ShadowRoll]

They've pumped an awful lot of money into the facility -- you'll be impressed if you've never been there before. However, the small fields and large number of scratches are terrible. I always go to opening day, including this year, but never again. If you wait until around DelCap weekend, on the other hand, the Florida and Maryland horses will have returned and they'll start to have larger, more competitive fields again (I hope).

[Cannon Shell]

Originally Posted by Scav

Unfortunetly that seems like the industry motto right now

You have been around a long time so you gone through bad and good within the industry, what is your opinion on what is going on with the ADW mess and Tracknet???

Not answering for Andy but his first comment has a lot to do with this

[Scav]

Originally Posted by Cannon Shell

Not answering for Andy but his first comment has a lot to do with this

I know, and I guess simucasting is still fairly new to the industry.

I just get the feeling, in regards to the industry, that new ideas, new innovations are not carefully planned out or tested.

I'll give you an example, Arlington has these new tote machines that are cashless, how much you want to bet that these machines are absolutely the most ridiculous things ever and cause all sorts of problems.

I would rather have a ticket as proof and then I can calculate exactly what I am getting, and then go up to the tell and get hosed on the 2% winning ticket takeout....

[Scav]

Originally Posted by Cardus

It might take a couple of years, but they will be accepted. And the lines are shorter than going to humans, because the old, old timers do not use the machines.

Actually Arlington draws quite the older crowd. They are not too much of the problem, they just sit outside and go to the outside machines. Arlington's issue is dealing with the newly turned 18 year old that is trying to bet for the first time, but luckily we have $100 windows (like most tracks)

[mes5107]

Originally Posted by Cannon Shell

Not answering for Andy but his first comment has a lot to do with this

Chuck, I would love to hear your comments on the CDI/THG battle being waged. From what I hear, the horsemen are asking for 1/3 of gross takeout from ADW providers, but the ADW's seem to be saying this is not economically feasible.

I'm not completely clear on the details, so I'm not sure if you're on the front lines, or know anybody who is.

[Cannon Shell]

Letter to Horsemen from Rick Hiles, President KHBPA.



Recently, I am sure you have heard rumblings about our decision not to send the simulcast signal to the various advanced deposit wagering companies until horsemen receive a more equitable share of the revenue. This decision was reached after careful consideration regarding the overall health of the racing industry.



To every horseman it is all too familiar. “Handle is up, yet purses to decline.”



If a racing jurisdiction has not been fortunate enough to pass legislation providing a supplement to purses from slot revenues, inevitably purses will remain stagnant or decrease.



Quite often we are asked to explain how wagering can substantially increase while purses do not keep pace. It is simply due to the changing betting patterns of the wagering public. Where once people interested in betting came to the racetracks to watch and wager on horses, now for the most part they bet from remote locations or via the computer.



Initially, horsemen and racetracks were encouraged with the broader distribution of the racing product. Eventually, horsemen began to notice an alarming trend, the influx in betting did not result in appreciable purse increases. The dramatic handle increases from remote off track locations where horsemen do not receive an equitable share of wagering has created quite a dilemma.



Most notably, advanced deposit wagering (ADWs) companies, an innovative concept where betting patrons are encouraged to wager via the internet or by phone and view the races on television is the fastest growing segment of the racing industry.



Since its inception, ADWs recognized the distinct possibility that there would be a significant downturn in wagering at racetracks. Early on they initiated “bettor poaching fees,” later referred to as “source market fees,” to address the erosion of betting at the racetrack where horsemen receive a larger share of the wagering dollar. Later ADWs decided to increase the host fees as opposed to source market fees, but in the end while ADWs enjoyed immense profits from siphoning off betting patrons at the racetrack, horsemen continued to experience a decline in purses.



Experts continue to lament that the model is broke, but no one seems to have an answer on how it should be fixed. Exacerbating the problem is that now several racetracks have entered into the national ADW business. Therefore, while the ADWs flourish and racetracks profit from their ownership of the ADWs, horsemen’s problems with a lower share of the wagering dollar are compounded. With this backdrop, horsemen have decided that the time has come to restructure the model to assure that horsemen are receiving an equitable share of wagering revenue.



It was never our intention to alienate the betting public, we are simply attempting to assure that horsemen can continue to provide the quality of racing with reasonable purses that everyone richly deserves.







Rick Hiles

[mes5107]

Thanks Chuck. So basically, the major ADW's need to completely change the way they are structured. It sounds like this will certainly not clear up before this weekend.