The Ontario Racing Commission (ORC) released the racing date applications by the various race tracks operators for the 2010 racing year. These were the second set of applications because after seeing the original applications and the uproar they caused by their request to cut racing dates, the ORC issued a moratorium on cutting race dates for this year with a promise to study the impact of potential racing date cuts in the province. As a result, the ORC required new applications which would have each track racing the same number of days in 2010 as they did in 2009.
Fortunately for us, the ORC releases to the public the applications so anyone who is interested can read the applications. Several of these applications speak volumes. Great Canadian Gaming Corporation (GCGC), owner of Flamboro Downs and Georgian Downs in their applications reiterates the reason for their original application and the consequences of not approving it. Why am I discussing the seemingly mundane issue of racing date applications in Canada? Change the names of the tracks and you can be looking at any race tracks in the United States.
Did Flamboro and Georgian Downs sit around and do nothing to stimulate the business since they were acquired by Great Canadian Gaming?
In the spring of 2006, GCGC issues a report outline its perspective on the Ontario standardbred racing industry/. Titled “Stop The Bleeding – Build The Business”, the report quantified the significant declines that the industry faced at the time and introduced a vision for the future operations of its racetracks.
Since that time, GCGC has followed through on many of its product development initiatives but continues to be mired in declining racing revenues and upward cost pressures.
The GCGCs application then indicates how they have been losing money every year; this despite having slot revenue.
In doing so, GCGC is forecasted to lose nearly $4-milllon on its Ontario operations – that on the heels of a $4.5 million loss in 2008. To be clear, both Flamboro and Georgian Downs lose money on each and every one of their racing days, despite the slot revenue that is earned as part of the province’s Slots at Racetracks Program.
So how long until a public corporation decides they can not expect their shareholders to absorb continuing losses of this magnitude and decide to shut both tracks down? Unless something happens to change the dynamics of Ontario racing, it won’t be long.
So the question needs to be asked, why has Flamboro and Georgian Downs run into problems?
Even at that time, it has long been apparent that Ontario was dramatically oversupplying a receding marketplace with harness racing product of a mediocre nature.
In the early days of simulcasting, Flamboro became a staple across Canada and the Northern United States, attracting tens of millions of dollars in export wagering. But, as simulcasting advanced and more attractive foreign products became available, the demand for the Flamboro signal eroded.
There is too much racing going on in a market that has less demand for it. By racing year round, the purse account is getting spread out over the whole year resulting in a mediocre product. When you have so many simulcast signals available for purchase, are you going to buy the signal of track with an inferior product when there is a signal of better quality racing available?
The solution according to GCGC? Develop a racing circuit between their two tracks of 160 days total with each track racing six months instead of their current model of each track spreading their meet out over ten to twelve months. Realizing this will be a big change for the horsemen, they propose reducing the number of days over a period of three years; 233 days in 2010, 208 days in 2011, 160 days in 2012. What would this mean to the two tracks with respect to marketing and simulcasting?
While the above circuit model will help to address GCGC’s financial concerns, it will also usher in a new era for Ontario harness racing. A Flamboro/Georgian circuit would offer saleable, high-quality, year-round racing to the Ontario and simulcast marketplace, while allowing both tracks a season format that satisfies market demand and provides exciting promotional opportunities.
The track promises $120,000 in purses every day the first year, and to mitigate the impact on horsemen offered to add races each day to get horses raced and develop a stakes program for overnight horses, including claimers. According to GCGC, developing a second tier circuit, similar to Woodbine and Mohawk will allow their two tracks to offer similar purse structures, higher than they are now, to attract better horses now racing at other Ontario tracks; the end result offering a product that gamblers will have interest in.
Of course, OHHA is opposed to GCGC’s plan. They like the status quo, sending their lesser stock to race at Flamboro and Georgian Downs while they send their better horses to WEG or other B tracks in the province. Even though the horsemen were offered a stronger circuit to race on for more money, they rather continue as business as usual. No doubt they are fearful as to where they will race their cheaper horses. If GCGC’s plan was successful, many of the horses competing at these two tracks may no longer fit in. However, this would not be in 2010. The track operator has offered the horsemen a plan where the number of racing dates will be cut back each year with the average purses increasing each year to correspond with the cut back in dates. As a result, the horsemen will have time to upgrade the quality of their racing stock.
It is time for horsemen to realize the old business model does not work. There are too many tracks racing too long. The demand is not there. Rather than agree to a cut in overall racing dates at these two tracks and build a better product, they rather keep the status quo. My question is where are these horsemen going to race once Flamboro and Georgian Downs are shuttered? GCGC is not running a charity; it is a business. Once they realize they can’t make a profit, these two tracks will be shut down quicker than you can imagine.
While Flamboro and Georgian Downs may be sounding the alarm the loudest, other tracks have noted things are not wonderful in Ontario. Western Fair complains that they are racing too long. As per their filing:
By the time June rolls around, live fans have been watching races from Western Fair all winter and spring and they are ready to change it up by going to Clinton, Grand River, Woodstock, Dresden, Hiawatha or Hanover.
Fans want seasons. They get bored with the endless string of racing day in day out. They want a meet to start and a meet to end; keep the product fresh. Instead, the tendency is to race long monotonous meets.
Overall, how is Western Fair scheduling their calendar?
In summary, we have selected our 130 dates with a focus on maximizing the commissions earned…
Again, another track recognizing the key to financial success is scheduling your meet to maximize the export of their signal. It is all about off-track wagering. The question needs to be asked, how many simulcast signals do we really need at any one time? Wouldn’t the tracks, and in turn, the horsemen do better if their signal was one of a few available at a given time than one of many?
The situation at Windsor is not much better. For several years they have attempted to cut their racing dates due to the excessive number of days they race. They acknowledge their product is perhaps the cheapest in the province.
It is well known throughout the industry that Windsor Raceway Purse levels have been the lowest in Ontario for several years and they are now the lowest due to the unjustified level of racing the ORC has required to be conducted.
Due to the lower purse structure, they are unable to draw full fields and their simulcast product becomes less desirable with bettors bypassing their racing product accordingly. It becomes a vicious circle. Couple this with the current economic downturn and…
WRI is implementing a further reorganization of its financial affairs in 2009/2010 to survive during these difficult economic times…. The 2010 calendar at Exhibit “A” of 111 race days imposed by the ORC moratorium will compromise this financial reorganization and cloud the future of WRI.
The applications by these tracks is worth reading. You may access the applications by Flamboro and Georgian Downs as well as Western Fair and Windsor Raceway here.
Does any of this sound familiar? While in different states, you have Chester Downs, Pocono Downs, Dover Downs/Harrington Raceway, and Freehold Raceway racing at the same time. In New York, you have Monticello, Tioga Downs, Vernon Downs, Saratoga, Buffalo Raceway, and Batavia racing during the year. The Meadowlands and Yonkers Raceway are less than fifteen miles away from each other. Ohio has Scioto Downs, Northfield Park, Raceway Park and Lebanon Raceway.
Tracks realize they are part of a shrinking national (North American) market and they need to find their place in the new market. Horsemen, who are seeing the best purses they have ever seen seem to think everything is grand, even if they are racing in front of a handful of people. State racing commissions assign race dates in a vacuum; heaven forbid there was a coordination of dates with tracks just across the border in another state.
I am not one for advocating the closure of any race track. If done intelligently, circuits can be set up where tracks run shorter race meets and the rest of the year they will offer simulcasting. The set up of these circuits will allow us to keep the number of simulcast signals to a reasonable level thus allowing each track to get their signal distributed when they race to maximize the potential of their signals as they wouldn’t get lost in the clutter. More importantly, some people may actually go to the track as they would be racing for a shorter period of time; the meets will become boutique events.
Yes, I know we won’t need as many trainers or drivers as we have now; those who are not successful may need to seek employment elsewhere. We will not need to breed as many horses and will not need as many horses to race. However, this can be done intelligently. No one says we need to get to the end point in a year or two. Reduce dates over a period of three or four years so the industry can have a soft landing as it downsizes. The choice is clear. We can have a soft landing and gradually reduce the number of race dates to meet the market’s demands or we can see a wholesale closure of tracks which would be more devastating on the industry on the whole. It is time that people face reality; welcome to 2009.
Wednesday, November 11, 2009
Tuesday, November 10, 2009
Strikes are Nice but Spares Make the Game
Alan Kirschenbaum blogs on the Canadian Sportsman’s website about his idea regarding a multi-state Pick-8 as his way to get harness racing into the North American consciousness so when people hear about harness racing, they will think about a gambling sport where they can win a million dollars. As Alan correctly points out, at many tracks the purses outweigh what is being wagered so unless something is done quickly, slot revenue is eventually going to get cut off. The Pick-8 is his solution to what is ailing the industry.
While well intentioned, Alan, along with many in the racing industry, is missing the big picture. No argument, we need to get the whales, the people willing to gamble a thousand dollars or more a day interested in harness racing to help support the sport but it is only part of the solution. We need to get your 'typical' smaller gambler interested in harness racing and we need to get people in the stands. A bowler will tell you strikes are nice, but spares make the game. We are trying for strikes (whales) and are ignoring the spares (recreational gamblers). His proposal is not going to do anything to develop a new generation of harness racing gamblers (whales or recreational).
Why should we care about recreational gamblers? First of all, these are the people who will go to the track. Yes, I know the vast majority of the wagering is and will continue to be done off-track but how many people do you think will be interested in a sport where your ‘stadium’ is empty? Also, from today’s successful recreational gambler will come tomorrow’s whales.
Yes, a pool of $400,000 will get the interest of the whales; it may even get them to ignore the 25% (or more) takeout rate on these super exotic wagers some jurisdictions charge. But is this going to get the recreational gambler interested? Absolutely not; these bets are geared towards the big players; smaller players need not try. Realistically, how many combinations do you need to have a reasonable chance of hitting a Pick-4 with any regularity? How many combinations do you need to play to have any realistic chance of hitting a Pick-6 (play just two horses in each race and you have 64 combinations; two horses in each race of a Pick-8 would mean 256 combinations). The recreational gambler who watchees TVG and hears how big the carryover is and they hear their personalities talk about how syndicates are playing thousands of combinations to take down the pool. If you aren’t a whale, you will quickly realize a Pick-6 or 8 is a sucker bet and these bets will have no appeal to you. These Pick-Xs will do nothing to attract new gamblers, our future whales, to harness racing.
So once again, we are ignoring our recreational gamblers. By focusing on these Pick-Xs, we are leaving our regular gamblers with the same old betting options they always had. Why are we not attempting to appeal to them by offering wagering options which can be easily played for a small amount yet have decent pay offs? Why not offer double or triple quinellas where the gambler needs to pick the top two horses in two or three consecutive races or similar smaller scale wagers? These are bets that recreational gamblers can get interested in. Let’s say the minimum wager is $1 on this bet. Joe Gambler decides to box three horses in each leg of the wager. It will cost him $3 for each leg so betting the double quinella for $6 ($9 for the triple quinella) will give the player a good chance to hit and earn a decent pay out. Granted, he is not likely to collect thousands of dollars, but how many gamblers will be willing to wager $6 or $9 in order to collect a few hundred?
Most recreational gamblers are not greedy, but they want to be able to bet a little and win a decent amount of money. Tell them they can bet $6 or $9 to win a few hundred dollars and that they don’t even have to pick the horses in the exact order and they will be interested in racing.
Want to offer a Pick-8? Go for it. Just don't forget the small time bettor. They are just as important to the future of racing. Let's start worrying about offering wagers they may be interested in.
Remember, strikes are nice but spares make the game.
While well intentioned, Alan, along with many in the racing industry, is missing the big picture. No argument, we need to get the whales, the people willing to gamble a thousand dollars or more a day interested in harness racing to help support the sport but it is only part of the solution. We need to get your 'typical' smaller gambler interested in harness racing and we need to get people in the stands. A bowler will tell you strikes are nice, but spares make the game. We are trying for strikes (whales) and are ignoring the spares (recreational gamblers). His proposal is not going to do anything to develop a new generation of harness racing gamblers (whales or recreational).
Why should we care about recreational gamblers? First of all, these are the people who will go to the track. Yes, I know the vast majority of the wagering is and will continue to be done off-track but how many people do you think will be interested in a sport where your ‘stadium’ is empty? Also, from today’s successful recreational gambler will come tomorrow’s whales.
Yes, a pool of $400,000 will get the interest of the whales; it may even get them to ignore the 25% (or more) takeout rate on these super exotic wagers some jurisdictions charge. But is this going to get the recreational gambler interested? Absolutely not; these bets are geared towards the big players; smaller players need not try. Realistically, how many combinations do you need to have a reasonable chance of hitting a Pick-4 with any regularity? How many combinations do you need to play to have any realistic chance of hitting a Pick-6 (play just two horses in each race and you have 64 combinations; two horses in each race of a Pick-8 would mean 256 combinations). The recreational gambler who watchees TVG and hears how big the carryover is and they hear their personalities talk about how syndicates are playing thousands of combinations to take down the pool. If you aren’t a whale, you will quickly realize a Pick-6 or 8 is a sucker bet and these bets will have no appeal to you. These Pick-Xs will do nothing to attract new gamblers, our future whales, to harness racing.
So once again, we are ignoring our recreational gamblers. By focusing on these Pick-Xs, we are leaving our regular gamblers with the same old betting options they always had. Why are we not attempting to appeal to them by offering wagering options which can be easily played for a small amount yet have decent pay offs? Why not offer double or triple quinellas where the gambler needs to pick the top two horses in two or three consecutive races or similar smaller scale wagers? These are bets that recreational gamblers can get interested in. Let’s say the minimum wager is $1 on this bet. Joe Gambler decides to box three horses in each leg of the wager. It will cost him $3 for each leg so betting the double quinella for $6 ($9 for the triple quinella) will give the player a good chance to hit and earn a decent pay out. Granted, he is not likely to collect thousands of dollars, but how many gamblers will be willing to wager $6 or $9 in order to collect a few hundred?
Most recreational gamblers are not greedy, but they want to be able to bet a little and win a decent amount of money. Tell them they can bet $6 or $9 to win a few hundred dollars and that they don’t even have to pick the horses in the exact order and they will be interested in racing.
Want to offer a Pick-8? Go for it. Just don't forget the small time bettor. They are just as important to the future of racing. Let's start worrying about offering wagers they may be interested in.
Remember, strikes are nice but spares make the game.
Protectionism, Rewarding the Locals; A Solution?
For many harness horsemen, it is hard to get into a race at Delaware harness race tracks. This is because many of the races, especially in the lower classes, are written for "Delaware Owned or Bred". The end result is out of state horsemen that have horses which would be competitive in Delaware are on the outside looking in, screaming protectionism.
What may be considered protectionism in other states is being viewed in Delaware as rewarding the faithful. Where were all those out of state horsemen when $900 purses and $2,500 claimers were regularly featured on a Saturday night card at Dover Downs or when Brandywine Raceway closed? They left Delaware for dead and were off racing at more lucrative tracks such as the Meadowlands while the Delaware faithful kept harness racing going on life support until the VLTs arrived. Don't the faithful get to be rewarded and reap the fruits of their efforts? Look what happened in New York. When Yonkers Raceway reopened, they did not restrict races so horsemen that supported racing during the dark days at Yonkers were having a hard time drawing into races because the entry box was overflowing. Was this fair to those that supported the track during the dark times?
Of course, there is a limit to how many races should be restricted. Horsemen from out of state need to have a place to race horses that either win themselves out or are unable to compete at their local raceway. How do we balance the needs of the local horsemen with those who would like to ship in? The answer may be coming from New York.
Last year, Yonkers horsemen found they could only get some horses raced every three weeks due to an influx of horses coming from out of state tracks that closed. To fight this problem, horsemen wanted Yonkers to card races restricted to horses that raced at Yonkers. The NYSRWB brokered a compromise that benefited all horsemen in New York (many upstate tracks close during the winter as well) yet provided out of state horsemen with an opportunity to race. As a result of the compromise, New York harness tracks will be permitted to write races which are restricted to horses that raced six of their last eight starts in New York provided they card the same race without the New York restriction. This should allow more NY trainers to get their horses raced more often yet not close the track to out of state horses. Once Chester and Pocono close for the season and this condition begins to find its way onto the condition sheet, we will see how it works out. I expect this to be the fairest solution possible to all parties, balancing the needs of all horsemen.
Another person weighs in on Daryl Kaplan's column in Trot Magazine. Take a look at Jack Darling's blog and get his take on this issue.
What may be considered protectionism in other states is being viewed in Delaware as rewarding the faithful. Where were all those out of state horsemen when $900 purses and $2,500 claimers were regularly featured on a Saturday night card at Dover Downs or when Brandywine Raceway closed? They left Delaware for dead and were off racing at more lucrative tracks such as the Meadowlands while the Delaware faithful kept harness racing going on life support until the VLTs arrived. Don't the faithful get to be rewarded and reap the fruits of their efforts? Look what happened in New York. When Yonkers Raceway reopened, they did not restrict races so horsemen that supported racing during the dark days at Yonkers were having a hard time drawing into races because the entry box was overflowing. Was this fair to those that supported the track during the dark times?
Of course, there is a limit to how many races should be restricted. Horsemen from out of state need to have a place to race horses that either win themselves out or are unable to compete at their local raceway. How do we balance the needs of the local horsemen with those who would like to ship in? The answer may be coming from New York.
Last year, Yonkers horsemen found they could only get some horses raced every three weeks due to an influx of horses coming from out of state tracks that closed. To fight this problem, horsemen wanted Yonkers to card races restricted to horses that raced at Yonkers. The NYSRWB brokered a compromise that benefited all horsemen in New York (many upstate tracks close during the winter as well) yet provided out of state horsemen with an opportunity to race. As a result of the compromise, New York harness tracks will be permitted to write races which are restricted to horses that raced six of their last eight starts in New York provided they card the same race without the New York restriction. This should allow more NY trainers to get their horses raced more often yet not close the track to out of state horses. Once Chester and Pocono close for the season and this condition begins to find its way onto the condition sheet, we will see how it works out. I expect this to be the fairest solution possible to all parties, balancing the needs of all horsemen.
Another person weighs in on Daryl Kaplan's column in Trot Magazine. Take a look at Jack Darling's blog and get his take on this issue.
Sunday, November 8, 2009
An Open Letter to Governor-Elect Christie
Note: The following is an open letter to Governor-Elect Christie. While the letter is written with a New Jersey focus, many of these issues can apply to other states.
Governor-Elect Christie,
Congratulations to you on your election as Governor for the State of New Jersey. The people of New Jersey have elected you to this powerful office in their desire for change. In particular, many horsemen and horsewomen have voted for you in frustration, feeling that horse racing has been sacrificed for the benefit of Atlantic City. Make no mistake, some horsemen are still frustrated by your pledge not to allow VLTs outside of Atlantic City, feeling the only way racing can survive is with the introduction of slot machines at the Meadowlands. While I feel a lot of racing's problems have been self-inflicted, such as refusing to reduce the takeout rate on wagers thus encouraging gamblers to seek better investments for their gambling dollar; taking too much time between races; racing meets that go on too long promoting fatigue amongst the gambling faithful; the failure to introduce wagers which promote higher payoffs for the smaller bettors; in the case of harness racing using a confusing conditioned system to fill races instead of an easier to understand classified system; racing has been hampered by its prior refusal to adjust to the new marketplace. Now that racing is looking to make the changes it needs to survive, the antiquated regulatory system of the various states keeps racing from reacting to the new competition it faces in an effective manner. It is time to look at racing as legitimate industry and not just as gambling.
I understand your commitment to Atlantic City and your desire to keep gaming limited to the city. In certain ways, Atlantic City casinos have become 'too big to fail' with regards to their impact on tourism and employment. However, I do believe you are sacrificing New Jersey's revenue stream with this decision. New York has racinos; one very close to New Jersey at Yonkers Raceway with another racino planned for Aqueduct Racetrack. Pennsylvania has racinos with the likelihood of table games being introduced there shortly. How many millions of dollars are New Jersey residents spending in racinos in New York and Pennsylvania, generating revenue for those states instead of New Jersey? It boils down to convenience. How many slot playing residents in Bergen, Essex, Union and Passaic counties are heading to Yonkers Raceway because they can get to Yonkers in as few as 30 minutes compared to the two and half plus hours it takes to get to Atlantic City? How many residents in counties like Sussex, Warren, Morris and other counties are heading to Pennsylvania for similar reasons? These dollars are not coming back to New Jersey unless you make it easier for the residents in counties surrounding Pennsylvania and New York to gamble on slot machines in state. A VLT parlor at The Meadowlands would allow New Jersey to generate funds to help balance the New Jersey budget instead of helping New York and Pennsylvania balance their budgets.
Would VLTs at the Meadowlands impact Atlantic City? It would be naive to say it wouldn't but there are ways it can be minimized. Let a consortium of Atlantic City casinos manage the slot parlor at the Meadowlands and cut them in for a share of the revenue generated along with the various race tracks and horsemen who race in New Jersey. Allow slot players to earn comps which can be used not only for free slot play at the racino, but also give the customer a chance to earn table credits or a free room in Atlantic City as well as betting vouchers good at any New Jersey racetrack.
Make no mistake about it, racing would certainly benefit from the introduction of VLTs at the Meadowlands and possibly other racetracks. The funds generated by the VLTs could help put racing on a better footing, subsidizing purse accounts and the bottom line of racetrack operators, of which the state of New Jersey is indirectly one. The one problem with VLT revenue is that in other states, none of that new found money is used to improve the product. Track operators are content to improve their bottom line; horsemen are content to pocket all the revenue in the form of increased purses and breeder awards, but most racinos (there are a few exceptions) are content to make capital improvements in the casino side of the facility, but are hesitant to make any capital improvements in the racing side of their building and are content to leave the horse players in run down facilities. They are unwilling to use any of the slot revenue to make the racing product better to stimulate the racing game. Should New Jersey ever allow racinos, it will be necessary to legally mandate part of the VLT revenue be used for racing-related capital improvements and marketing as well as an offset for part of the takeout.
As previously alluded to, there are things which can be done to stimulate the horse and horse racing industry in New Jersey outside of VLT revenue. Since you have publicly stated that you wish to help the horse industry without introducing VLTs, permit me the opportunity to offer some suggestions for you to consider in your efforts to help the horse racing industry. I am not saying all of these ideas will work, but they are worth considering. Coming from a person with an interest in harness racing, many of the suggestions are geared towards the standardbred side of the equation; no doubt many of these suggestions can be replicated on the thoroughbred side.
If you decide to appoint your own committee to study the problems of horse racing, I would suggest you appoint a representative of HANA (Horse Players Association of North America) to your committee. While horse racing is a sport, it is important to recognize gamblers help keep the sport going. Therefore, it is important to have a spokesman for the fan and gamblers in on any discussions. Also, since Freehold Raceway is an active racetrack, make sure you appoint someone from Pennwood Gaming to be on the committee. Governor Corzine froze them out of his blue ribbon panel and the negotiations for the current purse enhancement agreement, resulting in Freehold being forced to reject the purse supplements which resulted in their racing product deteriorating. Once can't blame Freehold for rejecting an agreement they had no say in.
New Jersey legalized Off Track Wagering facilities but many municipalities have been reluctant to host them. This may because there is no sufficient financial incentive to make it worthwhile to the municipalities. The suggestion is to give municipalities a financial interest in an OTW. For wagers made at a specific OTW, dedicate .1 or .2% of the takeout to the municipality hosting the OTW to be used any way the local government deems fit. All of a sudden, you will find local governments looking to host one of the remaining eleven OTW facilities not yet built. Where an OTW has already been built, if the racetrack operator already has a financial deal with the local government, it may be modified so the town/city can get their share of the takeout instead.
Reintroduce the New Jersey Fair Circuit where races can be held for second tier horses. There would be no betting on these races but it would allow harness racing to be on display in local communities, perhaps as part of a local festival. These races were discontinued in the past because they were considered expensive and a hassle, but eliminating them was a mistake; it eliminated an effective way to market the sport to New Jersey residents and develop fans. The fair circuit can be funded by a small portion of the takeout which should not only cover purses, but expenses involved with a local training facility hosting the races.
Introduce a V75 and V64 bet to New Jersey in cooperation with the lottery. This bet is very popular in Sweden and Europe and is a low cost wager ($.10 for the V75 and $.20 for the V64). The key to the bet's success is they are sold like lottery tickets; fans can make their own selections or can have the machine make their picks for them. The suggestion is to offer this wager in conjunction with the New Jersey Lottery. The V64 can be held midweek at Freehold Raceway and the V75 can be held at the Meadowlands on Saturdays. Initially, gamblers making the wager through lottery dealers would be restricted to quick picks; those who bet at the track will have the option of making a quick pick or making their own selections. Let's assume 80% of each bet gets returned to the bettors in payoffs. The remaining 20% gets split equally between the lottery and hosting racetrack when the bet is made at a lottery agent and when the bet is made at a racetrack, the racetrack gets the whole share of the takeout to be shared with the horsemen. A half hour result show produced by the racetrack(s) can be shown on NJ Network and/or on the Internet. This is a win-win situation; the state of New Jersey gets revenue for education through the lottery and the racing industry not only gets revenue, it gets the opportunity to reintroduce horse racing to New Jersey residents.
Replace the New Jersey Sire Stakes with a New Jersey State Stakes. Due to semen transport, the sire stakes is not fulfilling the original purpose of stimulating agriculture. Unlike the NJSS, these races would be open not only for New Jersey sired horses, but for horses foaled by broodmares that spent at least six months in New Jersey before giving birth. Not only would the breeders continue to benefit, but it would stimulate agriculture in New Jersey by once again encouraging the development of horse nurseries in the state that went away once semen transport came into vogue. This will allow struggling horse farms to remain open and stimulate employment and allow farmland to be preserved.
Continue purse supplements for at least three more years to see how these proposals work. After the first year, the purse supplement may be reduced to reflect the success of these efforts. At the end of three years, the supplement program can be revisited. I know Atlantic City does not like the supplements, it can be explained they are paying the state for providing them a monopoly on casino gaming. The terms of the purse supplements should be restored to the original agreement, where racetracks agreed not to seek slots at their tracks instead of anywhere; this will allow Freehold Raceway to take advantage of the supplements.
I know the NJRC is considering a fair start rule. If not yet implemented by the time you become governor, press the racing commission to implement a fair start rule. While racing is trying to promote racing, nothing is more counter productive than letting a gambler lose their money well before the start of a race when a horse is more than 2/3rds of a football field behind when the race starts. Not having a fair start rule is counterintuitive. Yes, the track and horsemen benefit by not having to refund wagers, but this is offset by permanently losing fans who rightfully feel cheated.
Allow future pool wagering on the Hambletonian and Meadowlands Pace. The Kentucky Derby future pool wagers are popular and the Little Brown Jug has future pool wagering, why can’t two of the premier harness racing events have future pool wagering? It seems like free money to me.
There are times it appears the betting public is inadvertently not being represented at racing commission meetings. Appoint a public advocate to represent fans/gamblers at the NJRC meetings. Allow the public advocate the right to vote at commission meetings.
Legalize proposition bets in New Jersey for special events. For example, on Hambletonian Day, let fans bet on which driver is going to win the most races on the race card or which jockey will win the most races on Haskell Day. Proposition bets will allow newcomers the opportunity to be introduced to horse racing in a non-threatening way.
Support the racetracks in the event they try to cut the takeout rate to stimulate the handle. If other tracks and ADWs seem to be acting in concert to drop the signal of a New Jersey racetrack because they cut the takeout, file/support a federal anti-trust lawsuit against those tracks and ADWs.
Consider less racing. Currently standardbred race meets are so long that fans suffer from fatigue. A change of scenery is good. If unwilling to cut the number of races dates overall in the state, consider the possibility of racing some standardbred dates at Atlantic City Race Course or even Monmouth Park, even if just for 'festival meets'. This would allow horsemen to race as many dates, but allow for 'seasons' to keep fans fresh.
Endorse horse racing by showing up at the track for key events and present the trophy to some stakes winners. While it may not stimulate fan interest, it will show the horsemen that you care.
Thank you for considering my comments and suggestions. I wish you well as you get ready to embark on your term. Here is hoping you will fulfill your commitment to help New Jersey racing prosper.
Regards,
Pacingguy
Governor-Elect Christie,
Congratulations to you on your election as Governor for the State of New Jersey. The people of New Jersey have elected you to this powerful office in their desire for change. In particular, many horsemen and horsewomen have voted for you in frustration, feeling that horse racing has been sacrificed for the benefit of Atlantic City. Make no mistake, some horsemen are still frustrated by your pledge not to allow VLTs outside of Atlantic City, feeling the only way racing can survive is with the introduction of slot machines at the Meadowlands. While I feel a lot of racing's problems have been self-inflicted, such as refusing to reduce the takeout rate on wagers thus encouraging gamblers to seek better investments for their gambling dollar; taking too much time between races; racing meets that go on too long promoting fatigue amongst the gambling faithful; the failure to introduce wagers which promote higher payoffs for the smaller bettors; in the case of harness racing using a confusing conditioned system to fill races instead of an easier to understand classified system; racing has been hampered by its prior refusal to adjust to the new marketplace. Now that racing is looking to make the changes it needs to survive, the antiquated regulatory system of the various states keeps racing from reacting to the new competition it faces in an effective manner. It is time to look at racing as legitimate industry and not just as gambling.
I understand your commitment to Atlantic City and your desire to keep gaming limited to the city. In certain ways, Atlantic City casinos have become 'too big to fail' with regards to their impact on tourism and employment. However, I do believe you are sacrificing New Jersey's revenue stream with this decision. New York has racinos; one very close to New Jersey at Yonkers Raceway with another racino planned for Aqueduct Racetrack. Pennsylvania has racinos with the likelihood of table games being introduced there shortly. How many millions of dollars are New Jersey residents spending in racinos in New York and Pennsylvania, generating revenue for those states instead of New Jersey? It boils down to convenience. How many slot playing residents in Bergen, Essex, Union and Passaic counties are heading to Yonkers Raceway because they can get to Yonkers in as few as 30 minutes compared to the two and half plus hours it takes to get to Atlantic City? How many residents in counties like Sussex, Warren, Morris and other counties are heading to Pennsylvania for similar reasons? These dollars are not coming back to New Jersey unless you make it easier for the residents in counties surrounding Pennsylvania and New York to gamble on slot machines in state. A VLT parlor at The Meadowlands would allow New Jersey to generate funds to help balance the New Jersey budget instead of helping New York and Pennsylvania balance their budgets.
Would VLTs at the Meadowlands impact Atlantic City? It would be naive to say it wouldn't but there are ways it can be minimized. Let a consortium of Atlantic City casinos manage the slot parlor at the Meadowlands and cut them in for a share of the revenue generated along with the various race tracks and horsemen who race in New Jersey. Allow slot players to earn comps which can be used not only for free slot play at the racino, but also give the customer a chance to earn table credits or a free room in Atlantic City as well as betting vouchers good at any New Jersey racetrack.
Make no mistake about it, racing would certainly benefit from the introduction of VLTs at the Meadowlands and possibly other racetracks. The funds generated by the VLTs could help put racing on a better footing, subsidizing purse accounts and the bottom line of racetrack operators, of which the state of New Jersey is indirectly one. The one problem with VLT revenue is that in other states, none of that new found money is used to improve the product. Track operators are content to improve their bottom line; horsemen are content to pocket all the revenue in the form of increased purses and breeder awards, but most racinos (there are a few exceptions) are content to make capital improvements in the casino side of the facility, but are hesitant to make any capital improvements in the racing side of their building and are content to leave the horse players in run down facilities. They are unwilling to use any of the slot revenue to make the racing product better to stimulate the racing game. Should New Jersey ever allow racinos, it will be necessary to legally mandate part of the VLT revenue be used for racing-related capital improvements and marketing as well as an offset for part of the takeout.
As previously alluded to, there are things which can be done to stimulate the horse and horse racing industry in New Jersey outside of VLT revenue. Since you have publicly stated that you wish to help the horse industry without introducing VLTs, permit me the opportunity to offer some suggestions for you to consider in your efforts to help the horse racing industry. I am not saying all of these ideas will work, but they are worth considering. Coming from a person with an interest in harness racing, many of the suggestions are geared towards the standardbred side of the equation; no doubt many of these suggestions can be replicated on the thoroughbred side.
If you decide to appoint your own committee to study the problems of horse racing, I would suggest you appoint a representative of HANA (Horse Players Association of North America) to your committee. While horse racing is a sport, it is important to recognize gamblers help keep the sport going. Therefore, it is important to have a spokesman for the fan and gamblers in on any discussions. Also, since Freehold Raceway is an active racetrack, make sure you appoint someone from Pennwood Gaming to be on the committee. Governor Corzine froze them out of his blue ribbon panel and the negotiations for the current purse enhancement agreement, resulting in Freehold being forced to reject the purse supplements which resulted in their racing product deteriorating. Once can't blame Freehold for rejecting an agreement they had no say in.
New Jersey legalized Off Track Wagering facilities but many municipalities have been reluctant to host them. This may because there is no sufficient financial incentive to make it worthwhile to the municipalities. The suggestion is to give municipalities a financial interest in an OTW. For wagers made at a specific OTW, dedicate .1 or .2% of the takeout to the municipality hosting the OTW to be used any way the local government deems fit. All of a sudden, you will find local governments looking to host one of the remaining eleven OTW facilities not yet built. Where an OTW has already been built, if the racetrack operator already has a financial deal with the local government, it may be modified so the town/city can get their share of the takeout instead.
Reintroduce the New Jersey Fair Circuit where races can be held for second tier horses. There would be no betting on these races but it would allow harness racing to be on display in local communities, perhaps as part of a local festival. These races were discontinued in the past because they were considered expensive and a hassle, but eliminating them was a mistake; it eliminated an effective way to market the sport to New Jersey residents and develop fans. The fair circuit can be funded by a small portion of the takeout which should not only cover purses, but expenses involved with a local training facility hosting the races.
Introduce a V75 and V64 bet to New Jersey in cooperation with the lottery. This bet is very popular in Sweden and Europe and is a low cost wager ($.10 for the V75 and $.20 for the V64). The key to the bet's success is they are sold like lottery tickets; fans can make their own selections or can have the machine make their picks for them. The suggestion is to offer this wager in conjunction with the New Jersey Lottery. The V64 can be held midweek at Freehold Raceway and the V75 can be held at the Meadowlands on Saturdays. Initially, gamblers making the wager through lottery dealers would be restricted to quick picks; those who bet at the track will have the option of making a quick pick or making their own selections. Let's assume 80% of each bet gets returned to the bettors in payoffs. The remaining 20% gets split equally between the lottery and hosting racetrack when the bet is made at a lottery agent and when the bet is made at a racetrack, the racetrack gets the whole share of the takeout to be shared with the horsemen. A half hour result show produced by the racetrack(s) can be shown on NJ Network and/or on the Internet. This is a win-win situation; the state of New Jersey gets revenue for education through the lottery and the racing industry not only gets revenue, it gets the opportunity to reintroduce horse racing to New Jersey residents.
Replace the New Jersey Sire Stakes with a New Jersey State Stakes. Due to semen transport, the sire stakes is not fulfilling the original purpose of stimulating agriculture. Unlike the NJSS, these races would be open not only for New Jersey sired horses, but for horses foaled by broodmares that spent at least six months in New Jersey before giving birth. Not only would the breeders continue to benefit, but it would stimulate agriculture in New Jersey by once again encouraging the development of horse nurseries in the state that went away once semen transport came into vogue. This will allow struggling horse farms to remain open and stimulate employment and allow farmland to be preserved.
Continue purse supplements for at least three more years to see how these proposals work. After the first year, the purse supplement may be reduced to reflect the success of these efforts. At the end of three years, the supplement program can be revisited. I know Atlantic City does not like the supplements, it can be explained they are paying the state for providing them a monopoly on casino gaming. The terms of the purse supplements should be restored to the original agreement, where racetracks agreed not to seek slots at their tracks instead of anywhere; this will allow Freehold Raceway to take advantage of the supplements.
I know the NJRC is considering a fair start rule. If not yet implemented by the time you become governor, press the racing commission to implement a fair start rule. While racing is trying to promote racing, nothing is more counter productive than letting a gambler lose their money well before the start of a race when a horse is more than 2/3rds of a football field behind when the race starts. Not having a fair start rule is counterintuitive. Yes, the track and horsemen benefit by not having to refund wagers, but this is offset by permanently losing fans who rightfully feel cheated.
Allow future pool wagering on the Hambletonian and Meadowlands Pace. The Kentucky Derby future pool wagers are popular and the Little Brown Jug has future pool wagering, why can’t two of the premier harness racing events have future pool wagering? It seems like free money to me.
There are times it appears the betting public is inadvertently not being represented at racing commission meetings. Appoint a public advocate to represent fans/gamblers at the NJRC meetings. Allow the public advocate the right to vote at commission meetings.
Legalize proposition bets in New Jersey for special events. For example, on Hambletonian Day, let fans bet on which driver is going to win the most races on the race card or which jockey will win the most races on Haskell Day. Proposition bets will allow newcomers the opportunity to be introduced to horse racing in a non-threatening way.
Support the racetracks in the event they try to cut the takeout rate to stimulate the handle. If other tracks and ADWs seem to be acting in concert to drop the signal of a New Jersey racetrack because they cut the takeout, file/support a federal anti-trust lawsuit against those tracks and ADWs.
Consider less racing. Currently standardbred race meets are so long that fans suffer from fatigue. A change of scenery is good. If unwilling to cut the number of races dates overall in the state, consider the possibility of racing some standardbred dates at Atlantic City Race Course or even Monmouth Park, even if just for 'festival meets'. This would allow horsemen to race as many dates, but allow for 'seasons' to keep fans fresh.
Endorse horse racing by showing up at the track for key events and present the trophy to some stakes winners. While it may not stimulate fan interest, it will show the horsemen that you care.
Thank you for considering my comments and suggestions. I wish you well as you get ready to embark on your term. Here is hoping you will fulfill your commitment to help New Jersey racing prosper.
Regards,
Pacingguy
Messenger Recap and a Look Back at a Classic
Last night the Pacing Triple Crown came to a conclusion with the running of the Messenger Stakes and the filly companion stake, the Lady Maud. While If I Can Dream won the Messenger as expected, Yellow Diamond went down to defeat in the $364,430 Lady Maud Pace.
In the Lady Maud, Shanghai Lil scored an upset victory over Yellow Diamond in a brisk 1:53.3. In defeat, Yellow Diamond still showed why she was one of the best three year old pacing fillies as she was nipped at the wire by Shanghai Lil who benefited by Yellow Diamond getting roughed up in a :27 first quarter. Shanghai Lil was able to sting Yellow Diamond going to the quarter and then sat in the pocket the rest of the mile pulling out mid-way down the homestretch to collar Yellow Diamond at the wire (Unfortunately, the only replay available of the Lady Maud does not show the entire mile. It only shows the race to mid-stretch. If you wish to see the replay as available, you may click here).
In the $542,060 Messenger Stakes for three year old pacing colts, If I Can Dream wired the field in an impressive 1:52.2. If you look at the chart for the race, it would seem If I Can Dream had an easy three length victory; that is not the case. If I Can Dream was parked to the first quarter by Hypnotic Blue Chip and was then under pressure by Clear Vision in the third quarter as those two raced in tandem most of that quarter. Clear Vision showed a lot of heart in the race as he chased If I Can Dream home the final quarter when he had every excuse to quit after hooking up with the race winner in the third quarter. Entry mate Straight Shooting finished a non-threatening third while Hypnotic Blue Chip finished a well beaten fourth.
In a look back at one of harness racing's classic races, we go back to 1998 and take a look at the $600,000 March of Dimes Trot at the now defunct Garden State Park; a race I consider one of the best I had ever seen. Sugarcane Hanover, representing Norway, defeated the French champion Ourasi and American superstar Mack Lobell in 1:55.1.
Besides the brilliant victory by Sugarcane Hanover, there were several things to note about the race. First of all, notice the style of racing compared to the racing we are now seeing on a daily basis. The horses are making moves all throughout the race and are racing tightly bunched during the race. Nowadays, we have less movement during the race and the horses are strung out instead of racing as a pack. There was an international field, with representatives from Canada (Go Get Lost), France (Ourasi), Norway (Sugarcane Hanover), Finland (Friendly Face), Italy, and of course the United States. Another thing, with the exception of Go Get Lost, all the horses were older than three. While we can not have an international field in every race, if we would conduct our races in a similar racing style, our races would be more exciting than they are now and could help draw more people to the track and increase wagering on harness racing.
A couple notes regarding the thoroughbred Breeder's Cup. First of all, notice the influx of horses racing abroad in the Breeders Cup. We need to do more to get an international feel for our Breeders Crown events. Also, as a follow-up to my earlier posting calling for harness racing to offer proposition bets, it should be noted that the Breeder's Cup had a Jockey Head2Head wager where you attempted to pick the jockey that would win the most races from the two Breeder's Cup races over a two day periods. It turns out the winner for the Head2Head wager was the field (all other jockeys) which paid $5.60. Admittedly, the wager did not generate a huge handle ($117,559) when compared to the other pools. While not a huge money maker, it did allow provide novices an easy way to be introduced to horse racing. Clearly, at this time it appears this is not a wager to be offered on a daily basis, but for special event days, it may be a wager worth offering; days where a large number of novices will be attending.
In the Lady Maud, Shanghai Lil scored an upset victory over Yellow Diamond in a brisk 1:53.3. In defeat, Yellow Diamond still showed why she was one of the best three year old pacing fillies as she was nipped at the wire by Shanghai Lil who benefited by Yellow Diamond getting roughed up in a :27 first quarter. Shanghai Lil was able to sting Yellow Diamond going to the quarter and then sat in the pocket the rest of the mile pulling out mid-way down the homestretch to collar Yellow Diamond at the wire (Unfortunately, the only replay available of the Lady Maud does not show the entire mile. It only shows the race to mid-stretch. If you wish to see the replay as available, you may click here).
In the $542,060 Messenger Stakes for three year old pacing colts, If I Can Dream wired the field in an impressive 1:52.2. If you look at the chart for the race, it would seem If I Can Dream had an easy three length victory; that is not the case. If I Can Dream was parked to the first quarter by Hypnotic Blue Chip and was then under pressure by Clear Vision in the third quarter as those two raced in tandem most of that quarter. Clear Vision showed a lot of heart in the race as he chased If I Can Dream home the final quarter when he had every excuse to quit after hooking up with the race winner in the third quarter. Entry mate Straight Shooting finished a non-threatening third while Hypnotic Blue Chip finished a well beaten fourth.
In a look back at one of harness racing's classic races, we go back to 1998 and take a look at the $600,000 March of Dimes Trot at the now defunct Garden State Park; a race I consider one of the best I had ever seen. Sugarcane Hanover, representing Norway, defeated the French champion Ourasi and American superstar Mack Lobell in 1:55.1.
Besides the brilliant victory by Sugarcane Hanover, there were several things to note about the race. First of all, notice the style of racing compared to the racing we are now seeing on a daily basis. The horses are making moves all throughout the race and are racing tightly bunched during the race. Nowadays, we have less movement during the race and the horses are strung out instead of racing as a pack. There was an international field, with representatives from Canada (Go Get Lost), France (Ourasi), Norway (Sugarcane Hanover), Finland (Friendly Face), Italy, and of course the United States. Another thing, with the exception of Go Get Lost, all the horses were older than three. While we can not have an international field in every race, if we would conduct our races in a similar racing style, our races would be more exciting than they are now and could help draw more people to the track and increase wagering on harness racing.
A couple notes regarding the thoroughbred Breeder's Cup. First of all, notice the influx of horses racing abroad in the Breeders Cup. We need to do more to get an international feel for our Breeders Crown events. Also, as a follow-up to my earlier posting calling for harness racing to offer proposition bets, it should be noted that the Breeder's Cup had a Jockey Head2Head wager where you attempted to pick the jockey that would win the most races from the two Breeder's Cup races over a two day periods. It turns out the winner for the Head2Head wager was the field (all other jockeys) which paid $5.60. Admittedly, the wager did not generate a huge handle ($117,559) when compared to the other pools. While not a huge money maker, it did allow provide novices an easy way to be introduced to horse racing. Clearly, at this time it appears this is not a wager to be offered on a daily basis, but for special event days, it may be a wager worth offering; days where a large number of novices will be attending.
Subscribe to:
Posts (Atom)