11.4% takeout at Laurel?

[10 pnt move up]

Originally Posted by Dunbar

DRF.com has a story that starts...

"Laurel Park in Maryland plans to cut its takeout during its 10-day summer meet to a blended rate of 11.4 percent, the lowest take in the country, officials for Laurel said on Wednesday. Laurel's summer meet runs from Aug. 10 to Aug. 23."

(But the link to the rest of the story doesn't work for me.)

Perhaps the Ellis experiment with the 4% takeout on the late Pick-4 is already having a ripple effect.

--Dunbar

I could have swore someone here predicted this could lead to a marketing trend amonst struggling tracks.

[docicu3]

And Laurel is a struggling track ........rigormortis comes to mind!!!

[unassailable08]

b/c I know my home tracks will never adopt lower takeout for different reasons.

Lone Star Park will never get it b/c they don't need to. The average a lot of handle for every card nearly 2 million and 1.6 mil comes from off track.

They've cornered the DFW Market.

Fairmount Park will never get it b/c they are competing with the casinos on the river which have dominated since 1990.

[-BT-]

Originally Posted by docicu3

And Laurel is a struggling track ........rigormortis comes to mind!!!

Frank Stronach and the boys at MEC are always in the giving mood......11.4% takeout or not the degenerates who want to play the slots and the horses will just head 60 miles north to Delaware Park or 60 miles west Charles Town

i wonder what kind of takeout there's gonna be at the Timonium meet?

-bt-

[SniperSB23]

Originally Posted by -BT-

Frank Stronach and the boys at MEC are always in the giving mood......11.4% takeout or not the degenerates who want to play the slots and the horses will just head 60 miles north to Delaware Park or 60 miles west Charles Town

i wonder what kind of takeout there's gonna be at the Timonium meet?

-bt-

Unless that takeout applies to on track betting only I imagine the customer base they will be trying to appeal to is the off track betting one. I doubt people are showing up in droves to Ellis Park but a lot more people are betting their Pick 4's off track.

[SlewsMyHero]

I rarely play the Maryland circuit, but I will certainly be participating during their 10 day meeting. The New York and So. Cal circuits will always handle big money, but for lower level circuits like Maryland, how else are they supposed to attract bettors. It's pretty obvious they are not going to get slots any time soon, so a lower takeout is really their only option. Lowering the takeout to such low levels across the board should get the attention of all serious players. They could see their handle triple if they can get the word out.

[Kasept]

Originally Posted by SniperSB23

Unless that takeout applies to on track betting only I imagine the customer base they will be trying to appeal to is the off track betting one. I doubt people are showing up in droves to Ellis Park but a lot more people are betting their Pick 4's off track.

Except that a number of off-track units aren't taking the bet due to the fact that they stand to lose money after application of their sub-license signal fees..

[philcski]

Originally Posted by Kasept

Except that a number of off-track units aren't taking the bet due to the fact that they stand to lose money after application of their sub-license signal fees..

...which is a real shame. What these ADW people don't realize is the $1-2 they would lose on a $100 P4 (4% takeout - ~5-6% signal fee) is MORE than made up for by additional wagering on the card. It's common business practice in retail to have "loss leaders" which is precisely what Ellis is doing here. If you could find a list of outlets that aren't taking the bet I'll write a letter on behalf of horseplayers to them.

[SentToStud]

Originally Posted by philcski

...which is a real shame. What these ADW people don't realize is the $1-2 they would lose on a $100 P4 (4% takeout - ~5-6% signal fee) is MORE than made up for by additional wagering on the card. It's common business practice in retail to have "loss leaders" which is precisely what Ellis is doing here. If you could find a list of outlets that aren't taking the bet I'll write a letter on behalf of horseplayers to them.

It is a shame and I'll also write and call those non-participating outlets as well. With 80-90% of total handle off-track I guess for this to really work well they are going to need to amend the signal fee contracts, in effect splitting out the p-4 from other wagers.

[Dunbar]

The link to the full drf.com article is now working:

http://www.drf.com/news/article/86758.html

Here are some details from the article:

"Laurel is actually cutting the takeout rate to 10 percent, but because of legislatively mandated contributions to a fund for the Maryland Million, a series of stakes for horses sired by stallions that stand in the state, the exact takeout rates for Laurel's three categories of pools will be 11 percent for win, place, and show wagers; 12 percent for exactas and daily doubles; and 10.75 percent for trifectas, superfectas, pick three, pick four, and pick six bets."

Gee, I can try to beat the 25% takeout on the tri at Saratoga, the 20% takeout on the tri at Del Mar, or the 10.75% takeout on the tri at Laurel.

Let's see how smart horseplayers really are. I know takeout isn't the only relevant variable, but other factors have to be huge to offset the difference between a 25% takeout and a 10.75% takeout.

Here's an important quote from the article:

""We're so far down the pecking order at that time [with Del Mar and Saratoga running] that I want to do something to bump us up," Raffetto said. "Everyone in the industry always says this is the right thing to do, everyone always walks the walks, and now we're going to try it.""

This is another experiment (like the Ellis Park Pick-4) that could help shape the future of betting. Raffetto goes on to say they will need a 10% increase in on-track handle and a 30% increase in out-of-state handle to break even. I hope they get it.

--Dunbar

[philcski]

The horseplayers MUST embrace Laurel during this period. This is a trial run for things to come. It's a ballsy move by Magna and MD racing, and I love it. You better believe I'll take a look at their cards at this takeout rate!!!

[mes5107]

Originally Posted by philcski

The horseplayers MUST embrace Laurel during this period. This is a trial run for things to come. It's a ballsy move by Magna and MD racing, and I love it. You better believe I'll take a look at their cards at this takeout rate!!!

Agreed. I will make every effort to play at least 5 of these cards. If this experiment works, who knows what's in store for takeouts across the country. I think everybody should make an effort to play at least one day seriously during this meet.

[slotdirt]

Shockingly, I haven't bet a dime since the Belmont, but you can be dang sure I'll be checking out some Laurel cards during this period.

[SentToStud]

Originally Posted by Dunbar

The link to the full drf.com article is now working:

http://www.drf.com/news/article/86758.html

Here are some details from the article:

"Laurel is actually cutting the takeout rate to 10 percent, but because of legislatively mandated contributions to a fund for the Maryland Million, a series of stakes for horses sired by stallions that stand in the state, the exact takeout rates for Laurel's three categories of pools will be 11 percent for win, place, and show wagers; 12 percent for exactas and daily doubles; and 10.75 percent for trifectas, superfectas, pick three, pick four, and pick six bets."

Gee, I can try to beat the 25% takeout on the tri at Saratoga, the 20% takeout on the tri at Del Mar, or the 10.75% takeout on the tri at Laurel.

Let's see how smart horseplayers really are. I know takeout isn't the only relevant variable, but other factors have to be huge to offset the difference between a 25% takeout and a 10.75% takeout.

Here's an important quote from the article:

""We're so far down the pecking order at that time [with Del Mar and Saratoga running] that I want to do something to bump us up," Raffetto said. "Everyone in the industry always says this is the right thing to do, everyone always walks the walks, and now we're going to try it.""

This is another experiment (like the Ellis Park Pick-4) that could help shape the future of betting. Raffetto goes on to say they will need a 10% increase in on-track handle and a 30% increase in out-of-state handle to break even. I hope they get it.

--Dunbar

I've traded some emails with Ron Geary at Ellis. Their p-4 pool Saturday was $64,000, or 4x what it was the same day last year. I'll be shocked if it doesn't go over $100,000 this weekend. They are also seeing increases in the non p-4 pools which is the payback for them. Good for them. Laurel too.