MINUS $1 BILLION: U.S. HANDLE LOWEST SINCE 1998
Figures released today by Equibase Company confirm what the Paulick Report has been saying for months, that pari-mutuel handle on Thoroughbred racing in the United States is at its lowest level since 1998. With a 20% plunge in December wagering, year-end handle in the U.S. totalled $13,670,196,938, down more than $1 billion from 2007, a 7.16% falloff. It is the fourth decline in total Thoroughbred pari-mutuel handle in the last six years in the U.S.
Purses fells by 1.33% for the year, from $1,175,924,289 in 2007 to $1,160,313,672 in 2008. The number of race days declined 1.18%, from 6,168 to 6,095.
Click here to see the Paulick Report’s extensive look at U.S. handle since 1996, including totals adjusted for inflation.
The decline in 2008 handle accelerated in the final three months of the year. A third-quarter report showed the drop to be 5.75% on the year, but the worldwide financial crisis that shook world markets in September compounded the problems the racing industry was already experiencing. Click here to see analysis of the third-quarter handle report.
Thoroughbred Racing Economic Indicators
|
Indicator
|
December 2008
|
December 2007
|
% Change
|
|
Wagering on U.S. Races*
|
$820,358,357
|
$1,029,358,904
|
-20.30%
|
|
U.S. Purses
|
$60,123,263
|
$69,451,825
|
-13.43%
|
|
U.S. Race Days
|
330
|
365
|
-9.59%
|
|
Indicator
|
Annual 2008
|
Annual 2007
|
% Change
|
|
Wagering on U.S. Races*
|
$13,670,196,938
|
$14,723,993,055
|
-7.16%
|
|
U.S. Purses
|
$1,160,313,672
|
$1,175,924,289
|
-1.33%
|
|
U.S. Race Days
|
6,095
|
6,168
|
-1.18%
|
Tags: equibase ray paulick, gambling, horse race betting, Horse Racing, pari-mutuel handle, Paulick Report, thoroughbred racing economic indicators
January 6th, 2009 at 11:05 am
The current leadership of racing’s solution to this problem……..Get a bigger slice of the shrinking pie, raise takeouts or both.
A smart person that understands the gambling side of racing solution……Lower takeout to create more handle and actually give people a chance to think they can win while promoting that fact.
January 6th, 2009 at 12:19 pm
itp
excellent point…if they took 20% out of each winner of the slots or the crap table, people wouldn’t play…try convincing any gov official or elected official of this, and you will be run out of town
there is a trickle down effect and needs to be realized.
what part of higher taxes don’t these people understand
January 6th, 2009 at 1:02 pm
This industry is a classic example of the legendary album cover from Supertramp’s “Crisis? What Crisis?” The national economic meltdown cannot be blamed as the major cause to the alienation of sports fans, the kicking in the teeth of those who wager a little or a lot and the wearing of blinkers by “leaders” who seem to only care that their small bunker has all the comforts of home.
The public consciousness of Thoroughbred racing is about five minutes a year (the running of the Kentucky Derby and the Belmont Stakes, if a Triple Crown is on the line), with no national plan in place to expand and/or retain the pool of handicappers who use their entertainment dollars at the tracks.
Seriously, if the industry does not care about the future….why should we?
January 6th, 2009 at 1:43 pm
Hmmm….our numbers in France just came out today, too; 9.3 billion euros last year, up 4.8 percent from 2007 and up 66 percent from 1998. It’s a nationwide system with clear leadership and very, very close government oversight - everything the U.S. system is not. Plus, as a previous commenter mentioned, you can bet at 10,000 cafes, bars and coffee shops around the country. The initial press release hinted that takeout had been lowered last year, but the figures haven’t been released yet; takeout was 26 percent in 2007.
January 6th, 2009 at 2:28 pm
The economy is clearly a factor — after all, the Vegas casinos are down a similar % for 08 vs 07 but they’re not calling for a full-scale panic yet.
The main issue is not 2008. It’s the five years of no growth from 2003-2007. After Funny Cide, Seabiscuit and Smarty Jones, we pissed away a golden opportunity to grow market share.
January 6th, 2009 at 3:14 pm
Sure, the economy is a factor, however, the economy was going pretty good from 2003-2007, so I’m not buying the economy excuse for 2008. What we probably saw in 2008 is a lot more churning from dudes like me betting mainly with rebates which actually inflated the handle numbers.
Racing is overpriced to the gambler. The current model is failing, and failing fast.
January 6th, 2009 at 5:47 pm
Obviously, the national economy is a factor in the degree of the decline. However, a major cancer for Thoroughbred racing has been the ownership by important tracks by Magna Entertainment.
This company, which has been functionally bankrupt for at least three years, had destroyed racing at every track it has owned. Gulfstream, Santa Anita, Laurel, Pimlico, Lone Star, Remington - all have seen business shrink dramatically since being acquired by the clowns in Toronto.
Unfortunately, the upcoming actual bankruptcy of Magna will cause even more disruption and destruction of racing interest.
January 7th, 2009 at 2:23 pm
But the dirty little secret is that the tracks (TrackNet) actually made more revenue with less expense due to the increase in host fees than they did in the prior year with less handle, so the tracks really made out. They would not want to mention that… No, instead, they say they are concerned and feel the pain of the reduced handle as well and are doing all they can to improve it. Again, the player and certain OTB’s (that are paying the increased host fees) are the ones getting the shaft.
January 7th, 2009 at 6:34 pm
Vic I think the increase host fees came late. What kept the total high is the fact that more people started betting with rebate shops. I think the numbers would have been much worse if it wasn’t for rebate shop business which I think went up in 2008.
January 8th, 2009 at 10:29 pm
it has been ordained: every discussion from now on will be about “takeout” and how dumb the powers that be are for failing to lower takout.
January 14th, 2009 at 11:42 am
[...] in the deluge of recent negative industry trends, including a steep decline in 2008 national pari-mutuel handle, was the news that Turfway Park in Northern Kentucky actually had a minor increase in daily average [...]
January 14th, 2009 at 11:58 am
[...] in the deluge of recent negative industry trends, including a steep decline in 2008 national pari-mutuel handle, was the news that Turfway Park in Northern Kentucky actually had a minor increase in daily average [...]