Skip to main content

The Disconnect, Jockey Club Style

I was reading more about the McKinsey Report commissioned by the Jockey Club this evening. I came across what I think is something that is a little bit disconnecting.

Keep in mind I am just a dumb horseplayer, so I expect I am probably missing something.

The report calls for an increase in spend for TV coverage, to try and drive eyeballs to our sport. That's cool. Revenue can come from eyeballs over time by cultivating them - even with interruption marketing. It's a mass market strategy, and that's fine.

However, on takeout, it appears that strategy is completely turned on its head.

"I think we heard a lot from our most important customers that the pricing of the product is a little bit too high. But, in general, we thought a better way to deal with it - because of the regulatory environment - was to give targeted rebates to our best customers as opposed to a general reduction in takeout."

Instead of mass marketing to bettors - who supplies us with about nine out of every ten dollars of non-slot revenue - they have decided to target market.

So, if you want to watch on television, turn it on. If you want to fund the sport and get what your everyday slot machine gives you in value, you have to find an ADW that might or might not be legal in your state, learn the game, bet over $10,000 a month, call the owner of the ADW, and negotiate a rebate.

Like I said, I'm just a dumb bettor, but can anyone tell me why we'd want to spend millions mass marketing to people who will not give us revenue, but spend nothing target marketing to those who might?

Comments

Pacingguy said…
Oh, so basically what they do today? The everyday shlub who goes to the track pays retail while those who bet via an ADW get rebates.
Anonymous said…
Hey PTP,

I think by mass marketing the sport and focusing on the non-bettors, they're trying to generate altenate areas of revenue such as racehorse ownership. With syndicates taking up most of the advertising on all HPiTV programs, the sport wants people who are not so savvy with betting, (but still enjoy trying, like me) welcomed into the industry via alternate routes.

I don't think they're implying that bettors are no longer important in the long-term plan, but I believe they realize that there will always be gambling and that now is the time to attract all walks of life.

They're trying to diversify the product to become attractive to the 'everyday housewife', the 'doctor', the 'truckdriver', etc. Syndicates lay claim to the fact that you don't need a tonne of money or time to enjoy racehorse ownership and become 'part' of the industry.

However, I do believe that the sport does rely heavily on chaps such as yourself to generate revenue, and programs should be implemented in the long-term plan to educate people in this particular area of the business.

Standardbredgal

Popular posts from this blog

Sword Dancer Shenanigans Proves the Public's Point

Ask any random person who has not watched a horse race, or maybe have seen one or three : "Is horse racing fixed?"

They'll probably say, sure it is; common knowledge.

At that point, racing folks get excited to defend their sport. 99% of the races are clean, there is too much money involved to fix races, etc etc. 

Then we have yesterday's Sword Dancer, where not one of us can blame anyone for thinking like they do about the sport.

It's probably bad enough that a "rabbit" was entered for an old-time form of race fixing, but that the horse was ridden like a quarterhorse made the optics look terrible. That another horse - Roman Approval - had to be physically restrained due to the cowboy style race riding of the horse sent to destroy him, is probably just as bad optically.

But that was just the beginning. The real story had just begun.

At the head of the lane, this rank, spent, heart-ripped out rabbit, needed to do even more work for the 1-9 shot. He had t…

If #harnessracing is Afraid of the Answer......

There's a saying, apparently, from the legal community - never ask a question if you don't know the answer.

Today at the USTA meeting Jason Settlemoir put forth a motion that the USTA ask its membership the feelings on a question regarding slots and marketing. In a nutshell, it asked if a percentage of slot money should go into a slush fund to be spent on marketing and ancillary items to promote and grow the sport.

When the 54 director votes were tallied, the score was 47 to 7..... against.

Yes, the leadership of an organization voted down, in a landslide, asking the grassroots membership a question. 

Sure this seems super-silly, but why they did it, I think, is an easy one. They knew that if they asked the question the answer would be a resounding "yes". Then all hell would break loose. They'd have to try and get that done.

If harness racing is afraid of the answers to questions, they don't ask them. That seems to be the mantra of the sport. And it's p…

PTP's Bathing Index ® Derby Handicapping Angles - This is Much Better than Dosage

Good day racing fans!

It's one week until the Derby, where drunk people, rich people, sororities at almost every University, and others get together to watch, wager, take molly, drink juleps, wear hats, have parking issues, and partake in the annual Kentucky horse racing tradition.

I have scanned the big websites, read almost all social media and was very surprised that there are not a lot of people giving their thoughts on this year's Run for the Roses. It's like no one has an opinion! So in my never ending search for traffic, I decided to pop up a handicapping post. I think this post will help both new fans and old salty handicappers land on a winner.

As most know, physicality is important for handicapping (Leadbetter, et al). A lesser known angle is watching how a horse reacts while getting soapy water thrown on him. As long time handicapper Jessica notes, it can be a key to unlocking Derby betting fortune.


Preach.

Let's begin with our control group, Kentucky Derby …