New Illinois Board rule limits ADW access for IL players

[analyizethis]

Originally Posted by Cannon Shell

http://www.drf.com/news/article/114833.html


The Illinois Racing Board approved the cap in January as a way to protect the amount of revenue from account wagering that flows to Illinois horsemen and racetracks. Although many racetracks and horsemen objected to the cap, the rule went into effect after a 45-day comment period in which many racing industry officials said they would support the cap only if it were raised above the current market rate for premium signals.

So the horsemen basically agreed to a cap as long as it wasn’t set low enough to really impact pricing (so therefore was no cap at all). Now that a real cap was imposed what consequences do they anticipate and what actions do the horsemen plan to take?

As I said this morning on the radio, attempting to protect local product by putting restrictions on imported product does not work. (I misspoke this morning and should have referred to the “Smoot Hawley Act of 1930”)

Names , titles and some contact information of the powers that be are listed below:

ILLINOIS RACING BOARD

Chairman Joseph Sinopoli of Glen Ellyn, Angelo Ciambrone of Chicago Heights, William Farley Jr. of Oak Park, Tim Martin of Wheaton, Jon Metcalf of Indian Head Park, Allan Monat of Northbrook, Michael Murphy of Normal, Paul Smith of Plainfield and Robert C. Winchester of Rosiclare are the board Members. Officers are; Executive Director; Marc Laino (marc.laino@illinois.gov), Board Counsel Jennifer LaDuke (Jennifer.laduke@illinois.gov), General Counsel Shelly Kalita (shelly.kalita@illinois.gov) and Project Manager Mickey Ezzo (mickey.ezzo@illinois.gov).

The offices of the Illinois Racing Commission are located at the James R. Thompson Center 100 West Randolph Street, Chicago, Illinois 60601. The phone and fax numbers are (312) 814 – 2600 and (312) 814 – 5062 respectively.

The minutes of the January 26, 2010 meeting of the board reflect the following comment: “Commissioner Ciambrone moved to approve an interstate commission rate cap of 5%. An interstate commission fee is the fee a racetrack in another state charges an advance deposit wagering licensee to broadcast and accept wagers on its signal. Commissioner Smith seconded the motion. The Board approved the motion unanimously by voice vote. President Roy Arnold appeared on behalf of Arlington Park. John Johnston, John Walsh and Tony Somone appeared on behalf of Balmoral Park, Maywood Park, Hawthorne Race Course and the IHHA. Michael Campbell and Glen Berman appeared on behalf of the ITHA. Scott Duarty and Patrick Troutman appeared on behalf of TrackNet.” I don't know if this is a complete list of attendees but I see no memebrs of the media or representatives of HANA.

I would suggest that any interested parties contact any and all of the individuals named above. I will continue to hunt for more specific email addresses or phone numbers and post such information as found to assist in that effort.

The next meeting is scheduled for July 27, 2010 at 9:00 am in the downtown Chicago offices. Meetings are open to the public and as of right now I plan to attend.

The agency’s web site is http://www.state.il.us/agency/irb/default.htm and on that web site are FOIA (Freedom Of Information Act) forms, minutes of meetings and a variety of other pieces of information.

[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).

[dpkovalesky]

GOOD NEWS.

The Illinois Horse Racing Board voted earlier today to increase the cap on host fees. This will allow TwinSpires.com to offer you a full line up of racing including premium tracks like Del Mar and Saratoga. Starting Thursday (9/2) you will be able to log on to TwinSpires.com and enjoy every track offered.

We apologize for the inconvenience you may have experienced with the limited racing menu over the past weeks. We will do everything within our power to make sure you continue to be provided with the very best racing and the very best services from TwinSpires.com.

Again, we are pleased to announce that all tracks are now available to Illinois players.