NY rake gets extra rollback after earlier opportunity missed

[Kasept]

Here's Matt Hegarty's thorough piece: http://www.drf.com/print/news/nyra-o...-correct-error


For those piling on NYRA, the NYS RWB completely forgot about the sunsetting of the increase as well and supposed 'Franchise Oversight Board' likely had no idea about anything related to this:

And not even the racing board was aware of the error, since it signed off on documents throughout the past 15 months that described the superexotic rate at 26 percent. Under New York's laws, the board is required to review and approve NYRA's business plan every year, and the plan that was approved for 2012 listed the superexotic takeout rate at 26 percent rate. The board also approves NYRA's simulcast contracts, which list the takeout rates applied to all wagers.


As soon as this came out yesterday, in the back of my mind I recalled the 1% provision involved in the NYC OTB wrangling between Bloomberg and Albany. But like every other member of the media I had forgotten about it and the 2 year rollback timestamp. From Hegarty's 2008 article on the increase which came at the time of the NYC OTB crisis involving Bloomberg dumping it into Albany's lap:

The provision is one of two takeout increases contained in the bill, which passed Monday night. The other increases the takeout by 1 percent on all wagers made on races run at the three tracks operated by the New York Racing Association. Both takeout increases will take effect 90 days after the bill is passed, or just shortly after NYRA wraps up its upstate meet at Saratoga Race Course. The provisions sunset after two years.


Everyone should recall that NYRA vehemently argued against that Albany-generated 1% and increased rebates to NYRA Rewards members to try and offset it. The bottom line here is that the extra 1% decrease to 24% being instituted will stick around longer than the 15 months when it could have been 25%.

[parsixfarms]

Originally Posted by Kasept

Here's Matt Hegarty's thorough piece: http://www.drf.com/print/news/nyra-o...-correct-errorEveryone should recall that NYRA vehemently argued against that Albany-generated 1% and increased rebates to NYRA Rewards members to try and offset it. The bottom line here is that the extra 1% decrease to 24% being instituted will stick around longer than the 15 months when it could have been 25%.

I appreciate that NYRA argued against the increase when it was instituted. As a proponent of lower takeout generally (a stance for which NYRA deserves to be applauded), all the more reason to assume that they would have calendered the date on which the takeout increase was supposed to sunset.

[Kasept]

Originally Posted by parsixfarms

I appreciate that NYRA argued against the increase when it was instituted. As a proponent of lower takeout generally (a stance for which NYRA deserves to be applauded), all the more reason to assume that they would have calendered the date on which the takeout increase was supposed to sunset.

No doubt.

[Kasept]

Originally Posted by Cardus

I tend to forget that you are a member of the media.

Yeah.. Those inclined to attack are attacking RWB, the Oversight Board & NYRA, but where was a single member of the racing media (including me) or the horseplayer watchdog crowd to ask about when the rollback was going to happen at an appropriate point?

[cmorioles]

Originally Posted by Kasept

Yeah.. Those inclined to attack are attacking RWB, the Oversight Board & NYRA, but where was a single member of the racing media (including me) or the horseplayer watchdog crowd to ask about when the rollback was going to happen at an appropriate point?

There were a few that asked about it at the time on another message board. Apparently emails were sent but were ignored. This thing is a big cluster of incompetence. Surely you aren't excusing those that should have caught it because nobody else did either.

[Kasept]

Originally Posted by cmorioles

There were a few that asked about it at the time on another message board. Apparently emails were sent but were ignored. This thing is a big cluster of incompetence. Surely you aren't excusing those that should have caught it because nobody else did either.

No. Not excusing. Just easy to recognize how it was overlooked given the variety of interested parties that overlooked it.

[pmacdaddy]

It happened. The "overlooked due to the complexity of the takeout provisions in the Racing Law" part is kind of lame.

You are talking about 4% revenue difference on a big portion of the business. Should have been on a lot of parties radar.

[pba1817]

I am pretty sure if they were taking out 1% too low, that this would have been caught rather quickly....

[OTM Al]

Originally Posted by pmacdaddy

It happened. The "overlooked due to the complexity of the takeout provisions in the Racing Law" part is kind of lame.

You are talking about 4% revenue difference on a big portion of the business. Should have been on a lot of parties radar.

Gee, especially since increases in takeout are supposed to reduce profits. So you would think that if their revenues were down by 4% they would have noticed their take was too high....

[parsixfarms]

Was talking to someone about this last night: where were the folks at Getnick & Getnick? Aren't they being paid a seven figure retainer to make sure things like this don't happen? Other than a political payoff to Spitzer friends (when NYRA got franchise renewal), they never struck me as having a single bit of utility, even when they were court-appointed monitor. If some heads are going to roll, isn't this a good place to start?