Thursday, August 6, 2009

Two by Two

Two headlines:

One, "Handle off nearly $1-billion through July of ’09".

Two, Betfair set for float after profits shoot up 29%.

Two quotes:

One, "Maybe we can grind out a few dollars in these tough times." - Dennis Smoter, VP of the Maryland Jockey Club, earlier this year when raising takeout.

Two, "We know that the least valuable customers are the ones who lose all their money quickly. They go away and never come back. So, we are happy to take less off our customers per bet." Betfair, 2008 Annual Report

4 comments:

Anonymous said...

Love those quotes.
As I understand it, Maryland racing is on its deathbed and Betfair is expanding and prospering.

Those quotes are provide clear and concise explanations of why! Thanks for showing them.

Anonymous said...

Shortest post I read today anywhere............ but the one with the most meaning.

Pacingguy said...

I certainly am not disputing the problems being encountered in North America and the economy has certainly be hurt worldwide, but in fairness I must point out you are comparing gambling revenue in North America versus Europe and Asia.

Scott Ferguson said...

there's little difference Pacingguy apart from the way the problem is tackled. North America is stuck with a system that is outdated and getting worse because it is privatised and divided. What it desperately needs is some modern, innovative thinking. The Betfair quote about who the valuable customers are should be the underlying principle of every wagering company - if you charge too much, then you have to keep finding new customers to replace the ones you have chewed up and spat out. Customer retention is the secret to any industry, unless it's funerals.