A panel discussion at the National Horsemen's Benevolent and Protective Association (HBPA) winter convention in Hollywood, Fla. presented a detailed look at high-volume wagering rebates and their impact on pari-mutuel handle, reports Tom LaMarra in BloodHorse.com. The goal was to educate affiliates on how to work with high-volume shops – which account for roughly $2-billion a year or about 20% of total handle – and the ADW companies that cater to them.
“If you've got someone betting $1 million a year (on racing), I believe he deserves a discount,” said Bob Reeves, chairman of the National HBPA wagering committee. “If you've got someone betting $200 million a year, I believe he deserves a bigger discount.”
The high-volume service operators, while not revealing rebate numbers, sought to dispel the belief that their players win “straight up,” or without the discount. According to Rob Terry of Racing and Gaming Services, which has about 90 customers, his players lost about 6% in 2011 when rebates aren't factored into the equation.
Also addressed by the panel were the issues of late odds changes, the impact of high-volume players on the on-track pools, and the emergence of “micro ADWs” – or services that seek out other services' existing players and offer them higher rebates but have no stake in the industry.
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