Posts Tagged ‘kentucky racing’

INSTANT RACING? A-OKAY!

Thursday, January 7th, 2010

According to Kentucky Attorney General Jack Conway, adding instant racing machines to Kentucky’s racetracks would only require a few regulatory tweaks by Governor Steve Beshear.

For those not familiar with Instant Racing, these slot-like machines are programed with thousands of previously run races for the player to bet on. Oaklawn Park currently uses these machines and report great returns on this investment.

Is this enough to give Kentucky racing the boost it needs? Or will this only hurt the slots argument and therefore keep slots from ever winding up in the Bluegrass State?

Click here for the Herald-Leader article

Then come back to the Paulick Report and let us know what you think.

- Bradford Cummings

WAS POLYTRACK MAJOR FACTOR IN DROP IN KEENELAND WAGERING?

Monday, April 27th, 2009
By Ray Paulick
When Keeneland initially reported total handle fell 19% for its just completed spring meeting, I was ready to declare the Polytrack racing surface as the principal reason for such a significant drop. I’ve heard from many horseplayers who have told me they’ve either cut back on their Keeneland wagering since the synthetic surface was installed before the fall 2006 meeting or they’ve dropped the track altogether from their wagering activities. I can say from personal experience that the last couple of spring meetings here have been very difficult to handicap, and not just because it’s a short meeting with horses arriving from different racing circuits.

But as college football guru Lee Corso would say, “Not so fast my friend.” A closer look at the numbers suggests other factors contributed to the declines, and it’s not just the weak economy that has slowed nearly every industry.

All sources daily average handle, including on-track bets on live Keeneland races and imported simulcasts, plus off-track wagering (intertrack, OTBs, account wagering) dropped 9.6% from 2008, from  $8,935,354 last year to $8,074,957 in 2009. Total handle for the meeting (which fell from $142,965,657 to $121,124,351) isn’t a legitimate indicator, since there were 15 racing days in 2009 compared with 16 last year. In addition, there was one fewer weekend day this year because the Lexington, Ky., track was closed on Easter Sunday. Easter fell before the 2008 Keeneland meeting opened. Weekend cards produce higher handle than weekdays.

Still, that percentage drop in average daily handle is worse than the year-end national decline for 2008 (7.2%) and what we’ve seen so far in 2009 (minus 7.4% through March).

Also contributing to the decline in Keeneland wagering was the smaller fields for its races this year: a 5.4% drop, from 9.21 horses per race in 2008 to 8.71 in 2009. Average field sizes were smaller for the 117 Polytrack races and the 25 turf races. Smaller fields lead to fewer betting opportunities. Small fields plagued the winter meeting at Turfway Park, the northern Kentucky-tracked co-owned by Keeneland. Wagering there plunged 24.6% at its January-March meeting.

Keeneland has now seen declines in all-sources average daily handle in both 2008 and 2009 after hitting an all-time record of $10.6 million per day in 2007, the first spring meeting with the Polytrack surface. This year’s level of daily wagering is roughly the same as the 2005 spring meeting ($8,077,144) and the lowest since 1999, when a daily average of $7,362,660 was bet.

At least two tracks experienced positive meetings in 2009, including Gulfstream Park (it cut back from 87 to 79 racing days and saw its average daily handle increase by 14.2%) and Oaklawn Park, which saw a 4.6% increase in daily wagers. Santa Anita Park’s winter-spring meeting closed recently with a 12% decline in handle.

Keeneland’s declines came shortly after the Horseplayers Association of North America rated it the No. 1 track in North America using a formula that looked at field size, takeout and wagering variety. It was also the first meeting that almost all account wagering platforms took bets on the Keeneland races, which were shown exclusively on the TVG network.

The best news to come out of the Keeneland meeting was the absence, for the third consecutive spring, of any catastrophic racing injuries, according to Jim Williams, the track’s director of communications. Keeneland is co-owner of the company that manufactures Polytrack.

Copyright © 2009, The Paulick Report

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KENTUCKY RACING: AN INTEGRITY TASK FARCE?

Tuesday, October 7th, 2008

By Ray Paulick

People are making and cancelling bets on horses after races have begun. Let me repeat that: PEOPLE ARE MAKING AND CANCELLING BETS ON HORSES AFTER RACES HAVE BEGUN. Does anyone have a problem with that?

Apparently, several members appointed to a subcommittee on integrity that is part of a Task Force on the Future of Horse Racing in Kentucky aren’t all that concerned about the issue. The integrity subcommittee couldn’t even muster a quorum when three of its six voting members failed to show up for the panel’s first meeting at the offices of the Kentucky Horse Racing Commission on Monday afternoon.

At the outset of the meeting, subcommittee chairman Ned Bonnie (a member of the Kentucky Horse Racing Commission) said the panel was poised to take action on integrity issues until he was reminded by the commission’s executive director, Lisa Underwood, that a quorum wasn’t present.

Bonnie was joined by subcommittee members Robert Beck Jr. (an attorney and chairman of the Kentucky Horse Racing Commission) and Robert Vance, the secretary of Kentucky’s Environmental and Public Protection Cabinet. But missing were racing commission vice-chairman Tracy Farmer (chairman of the Task Force on the Future of Horse Racing and a Thoroughbred owner and breeder), Louisville real estate developer Brian Lavin and Paducah, Ky., attorney Duncan Pitchford.

It’s no wonder that some are referring to this entire exercise proposed by Kentucky Gov. Steve Beshear as a “task farce.”

Bonnie was disappointed at the no-shows, to be sure, but how do you think horseplayers feel? They are the ones, after all, whose confidence has been eroded by an archaic totalizator system with flaws that are being exploited by techno-savvy thieves; off-shore rebate shops that are virtually unregulated; a patchwork network of simulcast sites that answer to 38 different regulatory bodies; and ineffective rules, many of which were written for the good old days when the only bets made took place on track with a live teller.

For anyone not paying attention, the volume of pari-mutuel handle on horse racing is down this year by roughly 5%. It’s not just a Kentucky problem. By year’s end, total pari-mutuel handle in the United States may very well dip below $14 billion for the first time since 1999. That’s 10 years of stagnation.

We can blame the economy or competition from other forms of entertainment and gambling. Or we can ask our customers, which the National Thoroughbred Racing Association recently did, as to why they are not pushing as many dollars into the pari-mutuel pools as they used to. According to Keith Chamblin, the NTRA executive who outlined the consumer research at an industry conference, the attitudes of racing’s best customers can be summed up in five words: “Our core fans are pissed.”

Consumers are pissed because they feel cheaters continue to win races at an alarming rate by using performance enhancing drugs. They are convinced people are making or cancelling bets after races begin. And they see racing commissions and task forces and blue ribbon panels as pointless exercises conducted by mindless political appointees who are too out of tune to understand the problems or too apathetic to fix them.

That may or may not be the case with Kentucky’s Task Force and its various subcommittees. It should be noted that a majority of the ex officio non-voting members of the integrity subcommittee were on hand, including owner-breeder Gary Biszantz, professional horseplayer Mike Maloney and businessman Frank Kling, who spent a great deal of time and effort working on wagering integrity issues as a member of the Kentucky Horse Racing Authority, a panel dissolved by Beshear earlier this year and replaced with the current racing commission. All three spoke up in ways that indicate they understand the problems and sense the urgency in addressing them.

But the ex officio members can’t vote on any action items addressed by the integrity subcommittee. That’s up to the six voting members to do – if and when they show up for a meeting.

In the meantime, the entire Task Force should remember those five chilling words repeated by Chamblin: “Our core fans are pissed.”

The ball is in the court of the Kentucky Task Force and regulators, track operators, account wagering companies and others throughout this country.

What are they going to do address the concerns of racing’s best customers?

Copyright © 2008, The Paulick Report

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