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Showing posts from March, 2018

Big Racing Competition & The "Lottery" Bet

Good Monday everyone. Here are a couple items that I'd like to share with you.

Ah, it appears we've got some competition coming. Sports betting - at racetracks, online, and perhaps their own stand -alone shops might be happening soon.

We know in the past that slot machines and table games on racetrack grounds resulted in an approximate 20% drop in live handle (those numbers could be a little apple to grapefruity, but they're probably close).

If you're an old timer, perhaps you remember going to Belmont in the 1940's, where on-track on Memorial Day $5M was bet (about $60M today), and per capita handle was $77 (almost $1,000 today). Today, as we all know, a formidable amount of money is bet, but about 90% of it is off track, and on-track per capita - as we saw at Sunland Park yesterday for their big raceday - is about $20. It's not the only game in town.

Competition clearly matters. So, what could sports betting do to racing handles? Since we don't know what …

Being Nimble. For Racing it's Harder Than it Should Be

I was perusing the betting news this morning and saw this about Draft Kings and Fanduel innovating their offerings to customers.

"After testing the legal fencework, DFS operators have been on an innovation blitz over the last year or so. FanDuel created a whole division, FanDuel Labs, which is charged with developing new formats and game types. It’s been busy, too, rolling out ideas on a near-weekly schedule, it seems."

Innovating by offering new contests, new games, different formats and new technologies is nothing new in gambling over the web. But what is striking is the ease in which these companies can be nimble. It's essential to most businesses on the web, but certainly so in gambling.

Meanwhile, I read an article at the Washington Post by the always interesting Megan McArdle. She looked at a completely different phenomenon - changes in a product via slow rolling incrementalism; in this case, motor vehicles.

"For one thing, regular old-fashioned cars were non…