I scanned a UK study (pdf) commissioned by the gambling industry a couple of years ago. I didn't learn a whole lot (other than what I already did - modelling modern gambling demand and supply, etc, is hard), but once again this little gem popped up:
The first group is betting a lot of money, contributing to pools, and frequent rebate sites. They take advantage of every carryover, every promotion, buy workout reports, subscribe to all the services; everything that can give them even a tiny edge. They abhor Twinspires and TVG, bet peanuts at Santa Anita in 5 horse fields, and couldn't care less about a jockey or trainer colony, or what on-track promotions there are today. Outside of racing, these are the 'line shoppers' who search for -210 versus a -200 line, because it can mean the difference between winning and losing over 500 plays.
The second group is the target for Twinspires and TVG. They respond to free PP's if they make a bet. They want good video, for free, and want to bet races with higher quality horses, jockeys and trainers. They like to visit the track when they can, as much as they can.
Racing's (like online gambling's) goal is often about capturing new customers (customer B). This is done with promotions (bet $100 get $100) and advertising. The second part of the goal is to keep a customer (free PP's, ongoing promotions).
That's where I feel racing does fairly well (infinitely better from a dozen years ago, when offering promotions was considered killing "our profits"). Twinspires, TVG, BetAmerica are all doing great work in this regard, in my opinion. (note -- this retention and investment spend is a reason ADW's need at least decent margins, no matter what the braintrust in California tells you).
Where racing does very, very poorly, in my view, is funneling the second customer to the first. This is a function of two things: not understanding the gambler and specious industry regulation with regards to pricing - e.g. the in-state retention cap in California.
If racing works harder and invests in understanding how to move players from point B to point A, it would be in much better shape. The ADW's know more than anyone in this regard, yet oftentimes they're handcuffed by an industry devoid of such knowledge.
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