Your thoughts please Dave and Ranch- I can always count on you guys for such insightful and well thought out comments!! I found it interesting that NYRA Bets and The Stronach Group are part owners in this particular ADW. Here are my thoughts regarding the article:
- last minute odds swings do create a negative impression of the game to most players
- the CAW teams are working withing the framework of current wagering laws
- any of us, or groups of us, could build a CAW team and enjoy the same benefits
- the fundamental problem in horse racing today results from the business model between tracks, horsemen and the ADW's
I'd like to focus for a minute on my last comment regarding the article. Existing contracts between tracks, horsemen and ADW's are bad for the business. Let's take a high level view of how tracks and purses are funded. When a wager is made, a blended 'takeout' is drawn from the paramutuel pools and the balance of the pool is split between winning tickets. Part of this 'takeout' is split between racetracks and horsemen to fund track expenses and purses. Prior to the computer era, a typical split of takeout would by 7% to each the track and horseman. The balance would go to taxes. Remember the betting pools then all came from on track wagers.
Upon the inception of OTB's and eventually ADW's different types of contracts were created that greatly affected the split of the takeout. Short-sighted track management and horsemen groups looked at revenue form OTB's and ADW's as extra revenue never taking into account the long term impact on 'on-track wagering. Most of the current ADW contract provide tracks and horsemen with a 1.5 to 4% of each dollar wagered. The remaining takeout belongs to the ADW's which is used to pay their bills and fund rebate programs.
If the wagering dollar was split in a more equitable fashion less money would be available through rebates resulting in fewer CAW's and the industry would be better positioned to sustain itself..