Churchill Meet: Takeout Up, Handle Down, Purses Down

Studies show that when you raise takeout, handle declines, and in the long-run - because fewer people are betting your product - purses eventually go down.

This played out about perfectly at Churchill Downs since they raised rakes in April. But amazingly, it did not take a year or two years for the purse component to take a hit.  According to the Bloodhorse, which looks like it reprinted a CDI press release, purses declined in only 36 race days, from $534,942 to $532,903. 

In April, CDI announced that they were so confident that the purses would increase with the takeout hike, they increased stakes by 2.7%.
  • Churchill, however, is counting on a net gain from the higher takeout even if betting declines. The track has already increased its stakes purses for the spring meet by 2.7 percent to $7.68 million for the 24 stakes races
Horseplayers, just like any other betting consumer have spoken with their dollars, with handle for the meet down close to $50 million. This, during a month of May where North American handle gained, as well as June, which looks to be a good handle month, despite challenging field sizes.  For a full update on all Churchill Downs handles and statistics, please click here. 

No comments:

Similar

Carryovers Provide Big Reach and an Immediate Return

Sinking marketing money directly into the horseplayer by seeding pools is effective, in both theory and practice In Ontario and elsewher...

Popular