New Illinois Board rule limits ADW access for IL players

[Scav]

Mike Campbell holds court almost every morning right in front of the big screen. If I can get a couple minutes I will talk to him

[analyizethis]

A business meeting just got in the way of my attending the rcaing board meeting si I can't attend. I'll still monitor the minutes but if someone else makes to meeting that would be great.

[Scav]

Illinois Racing Board response to Advance Deposit Wagering customers



The Illinois Racing Board is aware that last week some out-of-state programs were removed from internet wagering sites by virtue of a statutory cap imposed on interstate simulcast fees. A limit on the amount of fees that may be paid to an out-of-state track by an internet wagering site is required by the same Illinois law that authorizes internet wagering on horse races. The exact same cap has existed in Illinois for almost 30 years on interstate fees paid by Illinois off-track wagering facilities to out-of-state tracks for their simulcasts. These interstate fees come largely from revenues that would otherwise be paid to Illinois horsemen in the form of purses on Illinois races. The purpose for the cap on interstate fees is to preserve and promote the interests of Illinois horsemen and Illinois racing relative to other states. Such caps are common in other states for the same reason. For example, the state of California has a cap which is far more stringent than Illinois’. It is important for internet customers to understand that some internet sites operating in Illinois, such as TwinSpires, Xpressbet and Youbet.com, are owned by public corporations that own a multitude of out-of-state tracks which regularly simulcast into Illinois. These tracks are primarily interested in seeking higher fees for their simulcasts in order to maximize their own revenues irrespective of the interests of Illinois horsemen. These sites have vigorously opposed the cap on interstate fees, have threatened to have their sister tracks and others withhold simulcasts into Illinois, and are now encouraging their customers to complain to the IRB about the limit on their fees. The cap on interstate fees was established based on the desire of a majority of Illinois licensees and Illinois horsemen in accordance with a legislative mandate to protect Illinois racing. The IRB will continue to monitor and adjust the cap as the interests of Illinois racing warrants.

[dpkovalesky]

I have read about this 100 times and its still confusing me.

Can anyone dumb it down?

[Scav]

Originally Posted by dpkovalesky

I have read about this 100 times and its still confusing me.

Can anyone dumb it down?

What i take from it is that the IRB is capping the amount of profit these corporations can make. Corporations are trying to increase their profits by taking away from the horseman's 'profit'.

[onebadbeast]

yes, i am an illinois horseman and i am tired of eating hot dogs every night......what a bunch of b.s.

Originally Posted by Scav

What i take from it is that the IRB is capping the amount of profit these corporations can make. Corporations are trying to increase their profits by taking away from the horseman's 'profit'.

So instead of receiving anything, the IRB & ILL. horsemen have decided to block the signal to ADW's thus amounting to NO income from these sources. BUT they allow the same signal to be streamed into the ILL state OTB parlors. These antiquated brick and mortar facilities will not work in today's environment competing with ADW's for the horse wagering dollar. So I see this as some of last ditch effort to get consumers to OTB's to bet on the product which has been denied.

So instead of betting through an ADW where I receive a nice rebate and full track prices, the IRB & Ill. horsemen would like me to bet at an OTB where I get a hamburger for every $1000 I put through the windows. PLUS if I happen to win I pay a surcharge of 2.5% - 5% on a winning wager. Sounds like a great deal to get people to continue to play the horses in ILL.

All of this at time when the economy might be heading for a double dip recession, unemployment at record levels, ...etc. These people are f'n morons. Do they understand that some piece of the pie is better than no pie at all?

[analyizethis]

I attended the meeting of the racing board on Tuesday and the issue was not on the agenda. The chairman acknowledged during the meeting that it was a "hot" issue and he requested that the parties (many of whom had representatives in the meeting) meet and hammer out an agreeable settlement that might restore the signals to Illinios ADW customers. Absent that, he said it would be on the agenda for the next meeting (scheduled for August 31).