Thursday, February 5, 2009

Maryland Raises Pick 3 & 4 Takeouts by 83%

In addition, the commission granted a request by the Maryland Jockey Club to raise the takeout on two types of wagers, the Pick 3 and the Pick 4, from 14 percent to 25.75 percent.

It is irrelevant what this does, or does not do in terms of the bet itself. Racing just needs to know that anyone that hits a pick 3 or 4 in Maryland will have much less to rebet, because they will be returned less. A 20k pick 4 pool at 14% with five winners returns $3440; at 25.75% the winning tickets are now $2960. This results in (at a churn rate of six, the number racing itself uses for churn rate) a loss in $14,000 in handle per pick 4. Over 200 race dates this results in a loss of handle for racing of $2,800,000, for just the pick 4's. It's a silent handle killer, and in the words of others, "An Anti-Stimulus Package".

7 comments:

Scott Ferguson said...

is it the same situation as in Aus where none of the bigwigs making these proposals or decisions have ever placed a bet in their lives, or at least any with a realistic expectation of getting something back?

ITP said...

Raiang the takeout is the only way racing can survive. 45% is the proper takeout level for everybody involved.

Pull the Pocket said...

:)

I cant remember who it was recently then they raised prices, but they said they did because 'things cost more now'. True understanding of the % margin market. :)

One poster, I do not remember who, replied back: "When things cost more in 2030, does that mean takeouts will be 80%?"

Cangamble said...

I do think that Maryland just qualified themselves for the first HANA boycott.

Anonymous said...

Boycott what?
I've got a tip on a horse at Laurel in 3 or 4 weeks.
RG

Anonymous said...

Cangamble,

Boycott Is not the way to go.Promoting the Tracks with low takeout(bets)Is.
Tracks like Monmouth park pick-4
@ 15% takeout,Keenland's 17% on pick 3 and 4's.

We should also tell people to stay away from High takeout tracks.


These things should be In Bold letters"above the fold"On every blog from "TBA" To "Hana" "To Pull the Pocket" "ConGamble" "Paulick"...all the way down the line.It should be In everybody's memory who has the best Bet via takeout.


J.

Scott Ferguson said...

How about encouraging the low takeout tracks to promote their takout figures, making people ask the question about how much the other tracks, who don't disclose theirs, charge?