Handicapper Threatened With Closure of Account Due to Legal Wager???

This week’s LET IT RIDE.COM HOT TOPIC comes from Steven Crist of The Daily Racing Form…take a read and VOICE AN OPINION!

Time for show bettors to get paid what they deserve

Barry Meadow, a prominent handicapping author and horseplayer, is a contrarian whose favorite bet is the pick six but who also makes the occasional show bet expecting only a $2.10 for $2 payoff. As a pioneering proponent of value betting, he believes there are situations when a horse’s (or a coupled entry’s) true chances of running third or better are so high that a mere 5 percent profit is actually a bargain. He recently made two such winning online wagers on coupled entries, betting $2,600 for a $130 profit at Golden Gate and $2,400 for a $120 profit at Santa Anita.

“These are legal bets,” Meadow said. “A similar bet ontrack would have gotten me a thank you.“

Instead, Meadow got a letter from a customer-service manager at Xpressbet, the ADW through which he placed the two show wagers:

“Dear Mr. Meadow, Recently your account has fallen under internal review for unusual wagering activity . . . . Because certain regulations require minimum payouts on winning bets, this requires the wagering host (in this case, XpressBet) to contribute additional funds to compensate for the ‘negative breakage’ created. Due to these actions, this letter is serving as a warning that if such irregular and improper wagering activity continues, your account will be subject to closure as allowed per the Terms and Conditions you agreed to when you opened your account . . . ”

The letter encouraged him to contact customer service. Instead, he brought the matter to the attention of the California Horse Racing Board, which has launched an inquiry into whether threatening to close an account for making legal wagers conflicts with its licensing requirements.

Almost all bet-takers reserve the right to close accounts at their sole discretion, so XpressBet did not do anything its customers have not technically agreed to, but the situation is complicated by MI Development’s common ownership of XpressBet, Santa Anita, and Golden Gate. The tracks could not refuse an in-person show bet if they offered one, so it is unclear whether their offtrack-betting arm can do so.

“If an ADW is afraid of losing money on a minus pool, they can request the track to remove that pool from the betting menu,” Meadow said. “Tracks have done this many times in the past. But once a track decides it is going to allow wagering on a pool, no ADW or simulcast center or OTB or Joe’s Bar and Grill should be allowed to block any wagering. . . . An ADW is a state-licensed entity which is supposed to take all bets on a wagering menu.”

Occasionally, horses are so heavily bet that even at $2.10 there is not enough money from losing wagers to pay the 5 percent winners and to cover statutory commissions. This creates a “minus pool,” where someone has to make up the difference. This used to be the sole responsibility of the track, but the growth of simulcasting led to a shift of that responsibility to whoever accepts the bet.

The $2.10 minimum payoff is a longstanding curiosity of the American parimutuel system. It was not instituted as a consumer protection, but as a mechanism for tracks to pay off at a lower price point than the standard method of rounding down to the nearest 20-cent increment – to pay off at $2.10 rather than $2.20 on heavily-bet horses. (Arkansas became the last major racing state to go down from $2.20 to $2.10 last year.)

In the long run, show betting remains profitable for the tracks because the rounding-down outweighs this sole instance of rounding up – the occasional $2.10 payoff on a horse who should only pay $2.06 is more than made up for by all the ones who should pay $2.39 but are rounded down to $2.30 in New York and $2.20 elsewhere.

The argument against providing true payouts like $2.06 or $2.39 has always centered on the flimsy issue of forcing mutuel clerks to deal with pennies. The real issue is that all those confiscated pennies add up to several million dollars a year in each of the largest racing jurisdictions, a sort of slush fund that is usually split between the track and the state and that neither is eager to give up.

In an age where most of the handle is bet offtrack and increasingly through wagering accounts where no one is counting out small change, it is time to re-examine these policies. A horseplayer whose $2.39 payoff is being knocked down to $2.20 is having a 47 percent rounding tax applied to his rightful winnings – on top of a 15-to-20 percent takeout.

As long as tracks continue to offer show betting, horseplayers should not be threatened with account closure for making perfectly legal bets at state-mandated payoffs. Wagering companies have every right to lobby a for a change in that minimum, but any change should be balanced by truer payouts across the board.



  เรือยางติดเครื่อง wrote @

After that, aall you could have to accomplish would be tto
wait for day once yyou should be able to watch your favorite NFL team.

For those who have experienced the craziness
of rushing into buyin tickets foor your favourite team’s games, it’s nnot a straightforward task.
So, a little advice, buy Seahawks tickets earlier in order too avooid the long line and discover
the overall game from start to finish.

  Kitchen Remodeling Contractor Tampa wrote @

Hey there I am so excited I found your website,
I really found you by accident, while I was browsing on Aol for something else, Anyhow I am here now and would just like to say kudos for a remarkable post and a all
round thrilling blog (I also love the theme/design), I
don’t have time to go through it all at the moment but I have book-marked it and also added your RSS feeds, so when I have
time I will be back to read much more, Please do keep
up the awesome jo.

  Chet wrote @

If you are interested in topic: make cash money right now – you
should read about Bucksflooder first

  alejandrawatria.wordpress.com wrote @

Along the best way, go to the Monkey Forest.

  white spots on skin wrote @

Hi tthere it’s me, I am akso visiting this website daily, this web
page is actually nice and the visitors are actually sharing pleasant

  m88 wrote @

Quality articles or reviews is the secret to attract the users to visit
the web page, that’s what this web page is providing.

  Yvette wrote @

Wonderful goods from you, man. I have consider our stuff prior to and you’re just too fantastic.
I really like what you’ve got here, really like what
you are stating and the way in whichh during which yoou assert it.
You make itt entertaining and you continue to care for
too keep it sensible. I can not wait to read far more
from you. This iis actually a wonderful website.

  Jaime wrote @

Great beat ! I would like to apprentice while you amend your web
site, how could i subscribe for a weblog
site? The account helped me a appropriate deal. I had beeen tiny
bit acquainted of this your broadcast ooffered vivid clear idea

  www.helpwyz.com wrote @

Hello there! This blog post couldn’t be written any better!
Going through this post reminds me of my previous roommate!

He continually kept talking about this. I will forward this article to him.

Fairly certain he will have a good read. Many thanks for sharing!

  ps2soccer wrote @

สวัสดี ! โพสต์ นี้ โพสต์บล็อก ไม่ เขียน ที่ดี !
ดู นี้ บทความ ทำให้ผมนึกถึง
เพื่อนร่วมห้องของ ฉันก่อนหน้านี้ !
เขา อย่างต่อเนื่อง พระธรรมเทศนา เกี่ยวกับ นี้ ฉันจะไป ส่ง บทความ นี้ กับเขา พริตตี้ แน่ใจ เขาจะ ดี อ่าน ขอบคุณสำหรับ !

  diese Site betrachten wrote @

Hello there! This is kind of off topic but I need
some advice from an established blog. Is it very hard to set
up your own blog? I’m not very techincal but I can figure things out pretty fast.

I’m thinking about creating my own but I’m not sure where
to begin. Do you have any ideas or suggestions?
Appreciate it

  remove google plus android wrote @

Hey! I know this is somewhat off topic but I was wondering which blog platform are you using for this website?
I’m getting fed up of WordPress because I’ve had issues with
hackers and I’m looking at alternatives for another
platform. I would be great if you could point me in the direction of a good platform.

  godaddy promo code wrote @

I am actually glad to glance at this web site posts which includes
tons of helpful data, thanks for providing such information.

  free bets wrote @

I loved as much as you will receive carried out right here.

The sketch is attractive, your authored subject matter stylish.
nonetheless, you command get got an edginess over that you wish be
delivering the following. unwell unquestionably come more
formerly again since exactly the same nearly a lot often
inside case you shield this increase.

  Learningforextradingbasics.wordpress.com wrote @

Does your blog have a contact page? I’m having a tough time locating it but, I’d like to send you an e-mail.
I’ve got some recommendations for your blog you might be interested in hearing. Either way, great site and I look forward to seeing it grow over time.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: