new rules on show payoffs

[philcski]

Originally Posted by Port Conway Lane

It seems complicated. In the show wagering under net pool pricing if I make a show wager from the simulcast facility in my state on Taptam in the Apple Blossom and the guy next to me wagers half a million on Zenyatta to show, my payoff on Taptam will be $2.10 wheras you will receive $6.40 from your track. In addition my track will pay out the minus show pool to the host track so that you will be paid off on your show wager. Someone please correct me if I have this wrong.

Not correct. It has no bearing on where you placed the bet.

Let's take the Apple Blossom example, where there is $555,000 to place on Zenyatta and $10,000 to place on Taptam out of a pool of $600,000 at a takeout of 20%:

old model (gross pricing): First, reduce the pool by the takeout. There is now $480,000 to be paid out. We will pay $565,000 of winners on $480,000 of pool, so obviously we have a minus pool- and everyone participates in it. Therefore all horses would pay the state minimum price (most states $2.10)

new model (net pricing): First, take out the winners: $600,000-$555,000-$10,000 = $35,000. Remove the takeout from the remainder, so $28,000. Split the remainder between the two horses, so $14,000 to Z and $14,000 to Taptam. THEN calculate the place price: Taptam $10,000-takeout= $8,000; add back the winnings allocation, so $22,000. Payout the winnings $22,000/$10,000, or $2.20 to $1, so a place price of $6.40. Z: $555,000 minus the takeout = $444,000; add back the winnings allocation, so $458,000. Still a minus pool for Z but Taptam's price doesn't get affected as adversely.