At some point, you can have the greatest information in the world and be the best handicapper ever, but if the takeout is too high, you will lose. Try betting Puerto Rican racing and the insane takeout they offer. What do you think would happen to all these pro poker players if they started raking in 20% of the pot for the house?
Personally, I think lower takeouts and more competitive racing could increase betting. I would much rather an overall lower takeout for everyone, no question about it. So, maybe rebate wasn't the right word, but takeout reduction instead. Any bit of the takeout that is given away lessens the chance of that happening. I want the game to grow, period. It will never, ever get better unless betting is increased, and nothing that is happening currently is going to make that happen. Fighting over a stagnant or shrinking pot of money is foolish if at the same time steps aren't being taken to try to increase the pool.
Many of the things that could help are opposed by tracks and/or horsemen because they are short sighted on many issues. What happens when tracks try to cut down days? Horsemen protest of course. They would rather keep carding 5 and 6 horse fields with unappetizing fields. Those really generate big pools.
Jockeys need insurance, what should we do? Increase takeout of course. Isn't the smart thing to do to cannibalize the pools even further?
I could go on and on, but it has all been said before.
I'm no expert on Hong Kong, but I know they passed a law allowing rebates to try to keep money in the pools rather than with illegal bookmakers. The takeout is also lower, I think about 12%. Not only that, when they lowered takeout to the current level, revenue increased. Not just handle, but REVENUE.