tag:blogger.com,1999:blog-8560898823512627114.post109577295535012911..comments2024-02-01T00:37:24.768-05:00Comments on PTP: Racing's Legacy Business & a Closed MindPull the Pockethttp://www.blogger.com/profile/05082676049275768769noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-8560898823512627114.post-12588797116279209452017-07-17T01:53:58.298-04:002017-07-17T01:53:58.298-04:00Every study conducted and paid for by racetracks t...Every study conducted and paid for by racetracks that I’ve read about, close to 40 years’ worth, has come up with the same conclusion: Lower takeout for a higher volume of play that would increase total net return. The results have been pretty much laughed at by all tracks and states (I’m talking about you, California). AS PTP notes, that's not a recipe for long-term survival.<br /><br />Racing doesn’t really start to compete until it reaches the 10% vig of sports betting. How much does an across-the-board reduction to 12% get us? That’s still hard to achieve with so many greedy mouths to feed. Yet how can a track with an existing Betfair presence just sit and wonder how Betfair can pay tracks a fee off 10% vig? Does “The Glass Cage” have a section on the loss of valueless racetrack executives jobs?<br /><br />The number of foals continues to drop in the US. Tracks are still reducing racing days but still try to run all year long. Collapse is inevitable but slow. Rather than try to subsidize a failing industry, it calls for buyouts (if you’re sympathetic) or forced closings (if you’re not) of tracks, farms, racing-related businesses that won’t survive anyway. A lot of tracks would deserve and get the axe.<br /><br />States’ current cut of the vig (which would be reduced) could kick into a combined policing/administrative superagency (Hong Kong); two agencies would avoid a monopoly. It would eliminate the maze of rules today and would allow WADA-type testing. A reduction to a series of shorter meets is in order (Australia, HK). Full fields encourage play, not expensive ones. Purses should end up much higher this way, to be earned on the way up (Kentucky Downs). On each race day, there would only be tracks that could fill a schedule staggered in 5-10 minute intervals (Australia), something US tracks mostly still won’t do. So that’s (say) 4 t’bred tracks during the day, 4 at night with carts and QHs holding down the (traditional) slots. <br /><br />Stockholders need to be encouraged. Let tracks carry purse overages from one meet to the next. That’s money/value right there, though it makes a track vulnerable to takeover and looting. Separating the asset from the main business would prevent that. A leaner business model would be attractive to investors.<br /><br />Track employees then become travelers unless they want part-time jobs – it used to be this way. Fewer physical racetracks and a better-paid dedicated core of staff reduces costs and thus contributes to lower vig.<br /><br />The cheap fair meets will survive, I’m convinced. And a horse retirement fund should be worked into all this.<br /><br />The world described in “The Glass Cage” (2015) has already arrived. Carr worries about self-driving Google(!) cars and the Airbus plane that pilots apparently couldn’t fly. It "forgot" the 2009 example of Capt. Sullenberger who let the plane land itself on the Hudson, as water landings by humans have usually been fatal. It couldn’t give the example of the highly publicized Tesla lane change fatal crash now blamed on recorded pre-set speeding and driver inattention after multiple system warnings. Like most lawnmower accidents, stupid is, as stupid does.<br /><br />- Eudaemon<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8560898823512627114.post-67933481321513531002017-07-13T19:51:58.348-04:002017-07-13T19:51:58.348-04:00Hi Joe,
Thanks for the comment.
Exchange wageri...Hi Joe,<br /><br />Thanks for the comment. <br /><br />Exchange wagering is (more or less) predicated on driving the most volume for profit. Betfair, for the most part, has paid their fees to racing based on gross profit. That is much unlike the system in North America (and some other parts of the world) where a share of the margin is racing's revenue. Betfair's model, by definition, is lower rake and more volume, with hopefully more profit in a win-win. It is a high volume low margin model, for the win pools. <br /><br />Thanks again for reading and commenting!<br /><br />PTP<br /><br />Pull the Pockethttps://www.blogger.com/profile/05082676049275768769noreply@blogger.comtag:blogger.com,1999:blog-8560898823512627114.post-18682284281356456802017-07-13T17:45:55.302-04:002017-07-13T17:45:55.302-04:00I agree with you wholeheartedly that most older ba...I agree with you wholeheartedly that most older baby boomers do not understanding how media is consumed today and tomorrow. And your argument that along with media will come new forms of gambling is cogent.<br /><br />While in law school, I did some odd jobs for the most successful bookmaker in Ohio after Jimmy the Greek Snyder. He spent a lot of time on his own byzantine accounting system in order to get an equal number of bets on both sides of the ledger, and thus make money on the juice.<br /><br />I am new to exchange betting. I noticed that the vigorish for those bets is noticeably lower. Is the reason for the lower commissions because digital exchange betting is more cost efficient and precise? And that exchange betting is less risky for those that hold bets?<br /><br />It seems to me that the internet now matches up back and lay bets instantly, and thus the bookmaker has much less work.<br /><br />However, the old guy was correct in criticizing you for using an electronic device while doing the mowing. A power lawn mower, either pushed or riding, is an extremely dangerous instrument. It is easy to become distracted. Hence, electronics can cause you to either become injured with mowing, or most likely to do a careless job cutting the grass because you are not paying attention.<br /><br />In many cases of work in the real world, digital is not your friend. See the book "The Glass Cage" by Nicholas Carr. <br /><br />For a time, I worked in the emergency room and I saw a lot of law mower accidents.Arizona Joehttps://www.blogger.com/profile/12079296513359271365noreply@blogger.com