SYMPOSIUM: Betfair exec.. "Exchange format is U.S. future"

[Kasept]

Originally Posted by jms62

Steve, how do you feel about betting exchanges. I used to do quite well on IBETX laying against odds on favorites and getting juicy odds when going long a horse. Having said this , it is wide open for corruption as it is very easy to make a horse lose.

I don't have enough understanding of the concept to fairly judge as I didn't get involved when it was out there initially. I know it's too successful to ignore, and if it can be formulated to allow tracks/horsemen to share in the handle, it has the potential to entice a new generation of player and be vital to whatever is ahead in North American racing. But if it only siphons action out of the pari-mutuel pool, it's a problem.

[randallscott35]

Simply put, it would lower the takeout which would attract more gambling money....Horse racing needs to compete with sports gambling.

[Kasept]

Originally Posted by randallscott35

Simply put, it would lower the takeout which would attract more gambling money....Horse racing needs to compete with sports gambling.

The lowering of takeout is a bit of a canard though Rand... It absolutely can stand to come down of course to a level that's 'right' and stimulates handle to the point that offsets the decrease. There's numbers that make sense for everyone and are simply necessary to pay for the overheads of everything involved in putting on the show.

But more than takeout, the nature of the internal model demands adjustment. As has been discussed widelt in the "model is upside down" discussions, the bet-takers are getting too much... The source of the product deserves an increase in the share.

[randallscott35]

Originally Posted by Kasept

The lowering of takeout is a bit of a canard though Rand... It absolutely can stand to come down of course to a level that's 'right' and stimulates handle to the point that offsets the decrease. There's numbers that make sense for everyone and are simply necessary to pay for the overheads of everything involved in putting on the show.

But more than takeout, the nature of the internal model demands adjustment. As has been discussed widelt in the "model is upside down" discussions, the bet-takers are getting too much... The source of the product deserves an increase in the share.

10% on WPS should be a start just like sports betting. Breakage needs to be reassessed as well. I don't think its a canard. Bigger dollar players would play horses if they perceived it more as a beatable game than a hobby.

[Kasept]

Originally Posted by randallscott35

10% on WPS should be a start just like sports betting. Breakage needs to be reassessed as well. I don't think its a canard. Bigger dollar players would play horses if they perceived it more as a beatable game than a hobby.

Satish Sanan, who is as big a player as is out there, says those whales are still out there but are playing outside the pools.

How about...

10-12% WPS.
14-16% 2/3 horse exotics/multis.
18-20% 4-6 horse exotics/multis.

These numbers are OK as long as the distribution reaches the bricks and mortar origin of the bet properly...

[randallscott35]

Originally Posted by Kasept

Satish Sanan, who is as big a player as is out there, says those whales are still out there but are playing outside the pools.

How about...

10-12% WPS.
14-16% 2/3 horse exotics/multis.
18-20% 4-6 horse exotics/multis.

These numbers are OK as long as the distribution reaches the bricks and mortar origin of the bet properly...

Exactly, no problem with that. Horse racing always seems to forget it fails without gamblers.

[jms62]

Originally Posted by Kasept

Satish Sanan, who is as big a player as is out there, says those whales are still out there but are playing outside the pools.

How about...

10-12% WPS.
14-16% 2/3 horse exotics/multis.
18-20% 4-6 horse exotics/multis.

These numbers are OK as long as the distribution reaches the bricks and mortar origin of the bet properly...

Steve, what does it mean when you say "whales are still out there but are playing outside the pools". Are they using exchanges and off shore rebate shops?

[Kasept]

Originally Posted by jms62

Steve, what does it mean when you say "whales are still out there but are playing outside the pools". Are they using exchanges and off shore rebate shops?

Yup..

[Bigsmc]

Originally Posted by Kasept

Satish Sanan, who is as big a player as is out there, says those whales are still out there but are playing outside the pools.

Back in the day, Satish used to hang with us slobs in the Tampa Clubhouse, dude FIRED away. Something I had never witnessed before, or since.