Fee impasse threatening signal distribution (UPDATE: Deal in place)

[joeydb]

Originally Posted by jnunan4759

"Let's Go Racing" is an marketing vehicle for the PTHA (Parx Horsemen).

Quote from the web site:

**The Let's Go Racing TV Show was founded by Salvatore Debunda, VP of the PTHA, and Bruce Casella in 1992. Michael Ballezzi, the Executive Director of the PTHA, has since joined the team as Technical Advisor. These three individuals are dedicated to helping promote the sport of thoroughbred racing and the horseman at Philadelphia Park.

It is a good show that I look forward to seeing each week. Just ironic that when they talk about a big mutuel there is no way most people could have had it.

[jnunan4759]

I did happen to see it by accident yesterday prior to the Super Bowl. It's bizarre they never talk about the impasse, because that is what most horseplayers in the area are talking about. I'm sure they are told not to. It's like an elephant in the room. I did think it was kind of insulting showing GP race.

[ne to socal]

Is there anyone who can share what each of the Co-op's members do in terms of handle?

I'd be very curious about:

overall handle as a co-op
handle @ each member facility
handle at live venues vs. no live racing
etc.

[jnunan4759]

I had heard a statement earlier that said it was 1BN/yr, but I'm not sure I believe that. The gray-area is that neither the Co-Op or Monarch are under any requirement to disclose information. Daruty was very frank when on with Steve and I learned more about these deals than ever. I think it's a thing that as long as the state gets it's tax on the bet made, whatever goes on behind the scenes is ok. The racing is not occurring in that state, so the racing commission really has no jurisdiction. It's all part of the interstate wagering federal law. In the state's view, it's just like a sales tax.

I think in the Co-Op, some entities could put several grand a day and some might only account for a couple hundred. I would think at Parx it could account for 100K on a Saturday and much more on a day like Preakness. Maybe more.

I know I go to a Parx OTB and the vast majority of traffic is on other tracks. They've probably seen a slight bump in local Parx handle on Saturday and Sunday due to not offering the Monarch tracks, but what I've seen more is that people just don't go and just don't play with them. Monday and Tuesday are mainly unopposed days, so I expect their handle on those days is relatively unchanged.

I'd be interested to see what effect it has had on TVG. Because of the law, many of the affected players can use a TVG account, PABets, which is Harrah's trotter track ADW. In December, there was only a few I knew who had this type of account. There was no need. You could go to the Parx OTB or bet on phone or internet at any track. Now, everybody I know has this account and uses it.

If I was TVG, I'd try to do anything I could to keep those new customers.

I'd imagine the $ input from the Mid-Atlantic consortium is not enough to cripple Monarch that much. It would be nice to have, but we're not going belly up over it. Otherwise this would be over. I'd say Mid-Atl profits more from Monarch than vice versa. Remember the local horsemen are also involved in this. This will trigger a purse decrease and when that appears (which I think it may have) then all bets are off.

[jnunan4759]

One thing I've learned and Scott Daruty confirmed is that the outrageous takeout in PA is not from the state. I think the maximum State takeout is 2.5% and they takeout 30% on a trifecta at Penn National. Where does that go ? Simple, it's a split between the track and horsemen.

28% of tickets to both. It's easy to see why the Horsemen's officers wear shiny suits and drive around in fancy cars. It's easy to see why they want to be elected every year. Back years ago a trainer would only do that job for a few years. He had to be talked into it. It was a pain in the ass. Now, it must be a moneymaker.

[joeydb]

Originally Posted by jnunan4759

One thing I've learned and Scott Daruty confirmed is that the outrageous takeout in PA is not from the state. I think the maximum State takeout is 2.5% and they takeout 30% on a trifecta at Penn National. Where does that go ? Simple, it's a split between the track and horsemen.

28% of tickets to both. It's easy to see why the Horsemen's officers wear shiny suits and drive around in fancy cars. It's easy to see why they want to be elected every year. Back years ago a trainer would only do that job for a few years. He had to be talked into it. It was a pain in the ass. Now, it must be a moneymaker.

That is insane! I never knew that and I live in PA and am embarassed that we have the worst takeout in the country on exotic wagers. And if what you are saying is true, it's not even for state revenue.

[joeydb]

Any updates on this?