Archive for wagering

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.

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Is Horse Racing Missing The Biggest Marketing Tool of All: The Horse???

This week’s LET IT RIDE.COM HOT TOPIC comes from Patrick Smith of The Australian…take a read and VOICE AN OPINION!

Racing’s biggest asset still the horse

Nobody knew how to say it. In truth, didn’t know what to say. Media types – the wordsmiths – trainers, jockeys and owners had already depleted their thesaurus reserves after Black Caviar won the Group I Patinack Farm by four lengths, the Lightning by a smidgin less. That was weeks ago.

Wins eight and nine were so easy, so contemptuous that everybody had done their finest work by then. Come the Newmarket last Saturday and words disappeared as quickly as Black Caviar ran away from her opponents again.

The Newmarket romp -10 starts for 10 wins – left everybody to confirm their bankrupt lexicon. They could not ferret out words to do justice to the greatest sprinting mare in the world. Fantastic, awesome, unbelievable had lost their potency after five wins, freak was overused by win eight, and miracle horse was a cliche by nine.

After the destruction of the Newmarket field, all that was left was her name: Black Caviar. It has come to mean the very essence of invincibility. The two words said everything a dictionary ran out of puff trying to find.

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Special horses can do this. Take racing to an exhilarating, beautiful, gently arrogant and almost sensuous state that nothing else in the sport can do. Owners can’t do it, jockeys no chance, breeders wouldn’t, bookies don’t want to, punters too flustered.

It is said the one indisputable fact about promoting racing is that nothing does it better than a superstar equine. Not boobs and booze. That’s just a spring of perving and puking. Not TV spruikers speaking in the shorthand of a secret society. Trisies, running dubs, suck runs, forget runs, morals and cats.

Champion horses are the only marketing tool racing has that takes the sport to the wider community. Everything else plays to the inbred. People love them. The Melbourne Cup is a contrived frenzy. People have a bet because everybody else does. People follow the likes of Black Caviar and So You Think because they are swooning at their ability and character. They fall in love with them.

There are few sights in any sport as breathtaking as that 100 metres of a race where Black Caviar continues to cruise while the opposition behind her is a blur of whips, heels, panic. Heartbreak and despair. That a horse can be so much better than the very best is tingling. Then jockey Luke Nolen just goes click . . .

Black Caviar has come along on the back of another beloved horse So You Think, a crowd puller and two-time Cox Plate winner, his first as a three-year-old at just his fifth start. That mighty horse, too, generated interest outside the community of bridles and girth straps. For all that, Flemington could not draw more than 25,000 to see Black Caviar make history. A day later the A-League final in Brisbane drew more than twice as many.

At Rosehill today, Australia’s best horses will compete for glory in two Groups Is and four Group IIs. It is one helluva program that has drawn $2.2 million prizemoney. Let’s hope it draws more people than horses because there were just 79 acceptances. Sydney racing is all bluster and of questionable substance.

Watch to see if this carnival is a celebration of racing or betting. History says the latter despite the romance of Black Caviar. If Richard Callander, the TVN ambassador for banality, has his way it will be punting and nothing else.

Callander, who has never met a person who is not his dearest friend, has said previously that he would not get out of bed if he could not bet. Celebrate the horse? Richie? Mmmm.

He is becoming more famous for his style of interviewing than anything else. A trainer might be asked a series of questions such as: Handled the track? Blinkers first time? Next start? Jockey? Happy? Distance? From here his questions deteriorate even further into just a series of syllables given punctuation only by his raised eyebrows. And he is a fine ventriloquist. No one can make his pocket talk like Richie. The horse, racing’s core, is inaccessible even on the industry funded broadcaster.

The small fields show something is rotten in NSW racing. Betfair and the corporate bookmakers yesterday week won the right to appeal to the Supreme Court over the NSW race-field legislation. In short, the corporates are challenging the very legislation itself; Betfair is appealing against not having to pay its money from a turnover model but rather on one that calculates the race-fields fee on revenue. In reality, the TAB is trying to squeeze the corporates out of the market and the NSW legislation helps that cause. It is said about $120m has been collected under the legislation but remains untouched in case Racing NSW loses its case and must hand the money back.

It is just another example of parts of the racing industry losing the plot. It goes to court over a money grab, but does not promote the very star of its business – the horse. In fact, it fights aggressively to allow horses to be whipped as others are forced to risk their lives over jumps. Money, money, money. Racing is a sport of greed.

And yet racing’s share of the media marketplace has shrunk so much it is miniscule and its share of the wagering market contracts just as dramatically.

Racing’s response is to first go on strike so it can beat horses with whips, race them at great risk over jumps. To blur spectators to this cruelty, racing gets the spectators pissed. And they wonder why the sport has bypassed generations.

Now, in NSW at least, it is hellbent on ridding the sport of corporate bookmakers, one tangible way to ensure the wagering market has a chance to grow again. Racing needs the corporates because the tote needs competition.

Betfair and the corporates have found an unlikely ally in Andrew Ramsden, former Victorian heavy and chairman of the Australian Racing Board for three years. In a handwritten but persuasive submission to the Victorian wagering review, Ramsden makes a strong case in support for the gross revenue model.

Ramsden’s position is both informative and crucial because he, like so many other leading Australian racing officials, fought desperately to ban Betfair from being licensed in Australia.

His opposition was based on the exchange’s service of allowing betting on horses to lose. At first and second glance, such a betting mode made the industry vulnerable to skulduggery.

The animosity towards Betfair was appropriate. It has only become an accepted and responsible player in Australian racing after it agreed to open its betting books to stewards before races were run. Whether you would allow betting on horses to lose to be enshrined in the laws of racing if you were starting up the sport now is most unlikely. But Betfair is here and going nowhere and the industry must work with it and other corporate bookmakers.

Ramsden’s about-face is both philosophical and practical. He has recommended that the corporates and Betfair – and the totes – be charged 20 per cent on their revenue.

It is a compromise that would ensure all parties contribute an appropriate and fair amount to the industry.

As insurance, Ramsden has suggested a floor based on 0.5 per cent of turnover.

Racing NSW must sit down with its foes before the court proceedings draw more money from racing funds. Adopt a national model that would serve all states and finally allow racing to concentrate on its most important asset – the horse.

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Is Gulfstream’s $.10 Pick 6 A Good Model For The Future of Wagering????

This week’s LET IT RIDE.COM HOT TOPIC comes from Andrew Beyer of The Washington Post…take a read and VOICE AN OPINION!

Microbets: Overall, the benefits trump any drawbacks

HALLANDALE BEACH, FLA.

A bettor playing Gulfstream Park’s races last month cashed a ticket that was almost unprecedented in U. S. parimutuel wagering. He collected $221,677 for a winning combination that cost 10 cents.

The wager, dubbed the Rainbow Six, represents an innovation sweeping the sport: the microbet. Whereas the $2 bet once was the industry’s standard, and most exotic wagers have been sold in $1 units, many tracks have begun to offer smaller bets. Customers at Gulfstream can play 10-cent superfectas, 50-cent Pick Fours and a 50-cent Pick Five as well as the 10-cent Rainbow Six.

This wagering concept was developed in Australia under the name Flexi-betting. An industry executive, Paul Cross, discussed the innovation at a U. S. horse-racing conference in 2006 and inspired a greyhound track to introduce wagers costing less than a dollar. Now most thoroughbred tracks offer microbets in some form.

The main rationale for microbets is to help smaller bettors play exotic wagers that typically require a multitude of combinations. Picking the first four finishers in a race is a formidable task; if a bettor wants to play a superfecta using all possible combinations of five contenders, a five-horse box with a $1 wagering unit would cost $120 and would exceed the budget of many players. The advent of the dime super means that a bettor can make the play for $12 and get in the game with the big boys.

Some people would say that this is not necessarily a good thing for less sophisticated bettors. Maury Wolff, gambler and economist, observed, “We’re pushing people into more complicated bets that are much more difficult to put together intelligently. It’s hard to screw up an exacta, but it’s easy to screw up a superfecta play.”
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Though the microbets surely have some drawbacks, they offer one benefit that trumps any negative features. They shelter players from tax withholding by Internal Revenue Service. When a bettor wins $5,000 or more on an exotic wager paying odds of 300 to 1 or higher, the government extracts 25 percent of his payoff. (If a superfecta returns $5000, the player walks away from the window with $3750 and a tax form.)

For many players – those who don’t itemize their tax returns and thus can’t claim losses to offset their reported wins – this is money they will never see again. Taking so much cash out of circulation reduces players’ betting capital and thus hurts the economy of the entire parimutuel industry. Because the payoffs on 10-cent supers, 50-cent trifectas, etc. are much less likely to exceed the $5,000 threshold, players keep more money and continue betting with it.

Some forms of microbets are more attractive than others, and I believe the worst of them is Gulfstream’s Rainbow Six. Though it has proved popular since it was introduced here this winter, it is, in my view, a sucker bet.

In the Rainbow Six, bettors try to hit six winners as in a conventional $2 Pick Six, but the entire pool is paid out only when a single ticket has all six winners. If more than one perfect ticket is sold, the winners collect 60 percent of the money bet that day (less the track’s takeout) and the remaining 40 percent goes into a jackpot that carries over to the next day.

“We know it’s a gimmick,” said Tim Ritvo, Gulfstream’s general manager, but he saw the Rainbow Six as a way of appealing to a new audience. “It’s giving the average lottery player a way to play for a huge jackpot without alienating our regular customers.”

The comparison with the lottery is appropriate. In a conventional Pick Six, a player putting in a small ticket has less chance of winning than a big bettor or syndicate; but if he picks six winners, he gets the same payoff as the big boys and he can be grateful to them for fattening the pool. The dynamics of the Rainbow Six are very different. A player buying a small ticket has a minimal chance of holding a winning combination that all of the big players miss. His best hope is to select six winners and collect a consolation payoff. After money is taken out of the pool and goes into the jackpot, and after Gulfstream gets its cut, only 48 percent of the day’s wagers are paid out.

That’s a 52 percent takeout – worse than the lottery. I hope other tracks don’t emulate Gulfstream and introduce their own version of the Rainbow Six: There are plenty of other possible betting innovations that are more fan-friendly bets.

Gulfstream introduced both the Rainbow Six and the 50-cent Pick Five this season to replace the $2 Pick Six, which had generated disappointing results. The traditional Pick Six can be the most exciting wager in the sport, but outside of California and New York it usually doesn’t attract large betting pools that motivate players to dive in. However, the Pick Five got an enthusiastic reception at Gulfstream. “It’s hittable, but the payoffs are good,” Ritvo said.

With hundreds of thousands fewer possible outcomes than a Pick Six, the Pick Five is a more manageable wager. The 50-cent unit lets average players spread their bets to give them a reasonable shot dealing with the big, wide-open fields at Gulfstream. Yet the bet has produced payoffs of $69,853 and $47,959 this winter, and the median return has been more than $5,000, making it well worth the handicapping efforts of any horseplayer. Moreover, Gulfstream promoted the Pick Five by offering it with a takeout of 15 percent (compared to the extortionate 26 percent it takes from trifectas and superfectas) so by almost any standard it is an attractive wager. Other tracks are taking notice. Keeneland announced a few days ago that it will replace its Pick Six with a 50-cent Pick Five.

Over the years, the racing industry has had a poor record of developing attractive parimutuel products. The last truly revolutionary idea in the game was the guaranteed $1 million Pick Six pool. But thanks to microbets, the sport may be able to offer a new generation of wagering products.

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Is Pari-Mutual Wagering Dead…Even With Slots?

This week’s LET IT RIDE.COM HOT TOPIC comes from Frank Angst of the Thoroughbred Times…take a read and VOICE AN OPINION!

Track owner Penn National sees little pari-mutuel future

While the company’s name still references a racetrack, Penn National Gaming Chairman Peter Carlino made it clear on Thursday that he believes pari-mutuel wagering has dried up, even at tracks with added gaming.

In a conference call with investors and analysts, Carlino said his company no longer will argue that adding slot machines at tracks is a way to improve pari-mutuel handle. He said that when the company lobbies for slots at tracks, it will move to new arguments—including the ability of racetrack slots to promote agri-business—because he believes increased purses do not improve the quality of racing or increase pari-mutuel handle.

“There aren’t sufficient numbers of racing customers in the world anymore because they died,” Carlino said.

Carlino said everyone realizes Penn National’s approach has been to buy tracks that have added gaming or have a chance to add gaming. In Maryland, where Penn National owns a 49% interest in Laurel Park and Pimlico Race Course, a percentage of gaming revenues supports purses. Carlino expressed frustration that tracks currently are left out of that equation.

“A huge mistake in Maryland—that’s never happened anywhere else anywhere in the country before—was to allocate slots proceeds to purses,” Carlino said. “I’m glad that horses are going to be eating well, but they’re not going to be running well if there’s no racetracks where they can run. The legislature completely ignored the people who have the real investment in the state, the racetracks.”

Carlino said Pennsylvania’s model for racinos, which he said included large licensing fees upfront and low taxes going forward, is the best. He encouraged Ohio Gov. John Kasich to consider a similar model.

“There is reasonable hope, if not an expectation, that [Governor Kasich] may recognize the advantage of protecting the racing industry in Ohio–which has a long history and needs help–and using that opportunity–since it’s already keyed up and ready to go–to generate revenue perhaps with license fees up front and a reasonable tax rate,” Carlino said.

Carlino said his company has begun to lobby in Texas with the hope that legislators will consider taking action this year. Penn National owns a half-interest in Sam Houston Race Park.

In Ohio, where Penn National owns Beulah Park near Columbus, Carlino speculated the state could allow racing licenses to be moved to areas that will not compete with the state’s planned free-standing casinos in Cleveland, Columbus, Cincinnati, and Toledo. Carlino said Penn National is emphasizing that with racetrack slots sustaining racing, states pick up important, environmentally friendly agri-business.

Penn National tracks without added gaming will face cutbacks.

“Operating these tracks at a loss is not in our long-term plan,” Carlino said. “We will ratchet down costs in Texas. We will ratchet down costs in Maryland. We’ll do whatever it takes. We’ll be tough and brutal about that because we have to. We’re not running a public charity.”

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Best Trainer Ever – 263 Gr1 Wins??? Best Horse Ever – wins two Cox Plates in first 10 starts???…Head to Melbourne Cup!

This week’s LET IT RIDE.COM HOT TOPIC comes from Michael Manley and Tim Habel of Melbourne Herald-Sun…take a read and VOICE AN OPINION!

BART CUMMINGS EYES MELBOURNE CUP WITH ‘SO YOU THINK’ AFTER DOMINANT COX PLATE VICTORY

MELBOURNE, AUSTRALIA – Racing Victoria Limited chief handicapper Greg Carpenter described So You Think as the “horse of the generation” following his emphatic Cox Plate win, which triggered bookmakers to promote Bart Cummings’ superstar to a clear Melbourne Cup favourite.

And, given the hype behind So You Think, plus the Cummings factor, bookmakers are bracing for the dual Cox Plate winner to be the hottest Cup favourite in almost 40 years.

Tab Sportsbet installed So You Think as $3.20 favourite for the $6 million Emirates Melbourne Cup.

New Zealander Veandercross started $3.20 favourite when second behind Subzero in the 1992 Melbourne Cup, while Gay Icarus, in 1971, was the shortest priced modern day Cup favourite at $2.75.

Cummings sounded an ominous warning about So You Think providing him with a 13th Melbourne Cup when he declared: “He’s getting fitter and he’s getting better.”

Asked if it was a concern So You Think, who has never raced beyond the Cox Plate distance of 2040m, backing up from the Mackinnon Stakes to the Melbourne Cup, Cummings shook his head and said: “Not the way we feed them”. When it was noted that So You Think had not run over his designated 10,000m before the Melbourne Cup, Cummings replied: “How short is he?”

Told that So You Think would be 760m shy if he raced in the Mackinnon, Cummings said: “He’s good enough to overcome it.”

The 83-year-old trainer posted Group I win No.263 on Saturday when So You Think lived up to his superstar rating to crush his rivals in the $3 million Tatts Cox Plate over 2040m.

The standing ovation from the rapturous Moonee Valley crowd was as much in reverence for Cummings as his great galloper.

While many mused So You Think was one of the all-time great Cox Plate winners, Cummings wasn’t even into comparisons with his own previous four winners or past greats. “It would be degrading to them,” he said.

Suffice to say, So You Think is fast making ground on Saintly, the “horse from heaven” that he bred and trained to win the Cox Plate-Melbourne Cup double in 1996.

Cummings said if So You Think was to attempt to win the 150th Melbourne Cup he would run in the Group I Mackinnon Stakes on Saturday.

“It will relax him. He needs a look at Flemington, the last time he was there (Glen) Boss went berserk on him,” he said.

Cummings was referring to the Emirates Stakes last spring when Boss led on So You Think before finishing second to All American.

Meanwhile, Carpenter said So You Think had eclipsed, in his mind, another dual Cox Plate winner Northerly and Makybe Diva as the best Cox Plate winner he’d seen.

“Everyone knows I was a wonderful fan of Northerly and I don’t like comparing champions, (but) he deserves to be put in absolute elite company,” Carpenter said.

“He’s the horse of the generation. (The) second and third horses were really brave, but he put the race beyond doubt and they made up late ground.”

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Double The Purses; Record Wagering…Hoosier Park Clobbers Turfway Park!

This week’s LET IT RIDE.COM HOT TOPIC comes from Christina M. Wright of The Herald Bulletin…take a read and VOICE AN OPINION!

INDIANA RACING GAINED RESPECT AT 16th DERBY

ANDERSON, INDIANA — Horse enthusiasts were lookin’ at the track, partly because Hoosier Park got Lucky.

Lookin At Lucky, that is.

The first big-name race horse at the Hoosier Park Racing and Casino brought in big crowds and bets at Saturday’s 16th Indiana Derby, despite the dreary day. It’s a success that the park hopes to continue.

“We really accomplished a new level of respect for our racing product today,” said Jeff Smith, general manager of racing. “We’ve shown the growth in quality of our fields, and we just expect it continue to grow.”

According to Smith, the park broke an all-time record for the number of wagers levied in a single day at 2.7 million, up from 1.3 million last year. The previous record was nearly 2.6 million wagers in 2005.

Smith said the race was broadcast on more than 500 outlets, including some in California and a major racing network.

Much of Saturday’s success was attributed the fame of Lookin At Lucky, who brought national attention to Saturday’s race. The single Indiana Derby race brought in about 848,010 wagers — more than double of the 338,448 for the race last year, according to Smith.

“He’s the all-out favorite,” said Chad Beeman, of Muncie. “If you look at everything, it’s almost an obligation to bet on him.”

Since the 3-year-old colt was favored to win 9-to-1, why did so many people get excited about him racing?

“People like to have a horse to root for, especially if he’s a really good horse,” said Vickie Duke, who races quarter horses she raises in Richland.

But not everyone was certain that Lookin At Lucky would pull off the race, since the track, after a morning rain and continuous drizzle, was decidedly muddy, said Andersonian Jennifer Welch.

Welch’s niece, 17-year-old Katy Powell, bet on Indy Bull for other reasons. Indy Bull chances were predicted to be second to worst just before the race.

“The bigger the odds, the more the money,” she said.

Welch bid on the favorite of the day, however, because her 7-year-old son, Brandon, enjoys watching the colt run.

As the race of the day began, crowds gathered near the track. Inside the covered viewing area, onlookers craned their necks at the televisions.

“It scared everyone that he stayed last for so long,” Duke said.

But, as the horse pulled ahead, the crowd held its breath and then exploded when Lucky crossed the finish line in first place.

“That horse just wants to win,” said trainer Bob Baffert, jockey Martin Garcia standing next to him with mud covering half of his face.

Kentucky, the home of horse racing, is not far away, yet Smith said he believes Saturday was a kickstart for Indiana racing to take the lead.

“We’re just thrilled to enjoy such a big day like this, and it’s great that all this is happening right here in Anderson,” he said.

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California Increases Takeouts…Is Raising Taxes in a Down Economy Anyway to Treat a Punter?

This week’s Let It Ride.com HOT TOPIC comes from Steve Andersen of Daily Racing Form…take a read and VOICE AN OPINION!

SCHWARZENEGGER SIGNS TAKEOUT BILL

California Gov. Arnold Schwarzenegger signed a bill on Thursday that will increase the takeout on exotic bets on California races to fund an increase in overnight purses beginning this winter.

The announcement of the governor’s signature was made by Keith Brackpool, chairman of the California Horse Racing Board, at Thursday’s meeting of the board. Brackpool said the governor would make a formal statement about the bill Friday.

The legislation was approved on Aug. 31 and sent to Schwarzenegger’s office on Sept. 8.
Last November, while attending races at Hollywood Park, Schwarzenegger indicated that he wanted to sign legislation in 2010 to aid the state’s horse racing industry. Schwarzenegger leaves office at the end of this year.

The takeout increase will take effect on Dec. 26. The bill will raise the takeout on two-horse exotic wagers by 2 percent, from the current 20.68 percent to 22.68 percent, and increase the takeout on bets requiring three or more horses by 3 percent, from 20.68 to 23.68 percent. Takeout rates for win, place, and show betting will remain unchanged at 15.43 percent.

The legislation states that revenue from the higher takeout must go to fund overnight purses. The measure could raise $25 million to $30 million annually, racing officials said during the summer.

The legislation permits the launch of exchange betting in the state in 2012 and has provisions to promote the Breeders’ Cup financially when the event is run in California.

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