The takeout is analogous to taxes. Raise taxes on something, like the infamous "yachts" example from the 1980's, and guess what -- people stop buying yachts. Then the yacht manufacturers start going out of business until the market seeks its new level: less buyers who are willing to pay the higher price.
Cutting taxes has the reverse effect.
If they had a short term plan to cut takeout to increase the health of the game, more money coming in at a lower takeout rate fueled my more players would still exceed the money coming in today at the higher rate fueled by less players.
As Steve often points out on his radio show, you still might have too much racing and need to close some tracks, reduce some dates, the breeding market will self regulate and there will be less horses, but with simulcasting and lower takeout the game could be in a lot better shape. The players would still have enough to wager on all day, and with better returns, it might be more attractive.
The government guys want the game to make money for the state every year, but they don't demand the same performance from the things they spend the money on, so how about giving the industry a break on earnings goals for a few years and let it get healthy?
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