You know I was a little shocked I didn't get more feedback on the last post, but was grateful to hear from Brad.
Tote Board Brad said... Exclusivity with respect to televising races is one thing, but exclusivity with regard to access to the wagering pools is another. In California we're likely to put it into law that all Cali tracks must provide their signal to all licensed advance deposit wagering providers in the state (currently there are only 3—xpressbet, tvg, & youbet). This is different than saying HRTV or TVG must be allowed to show the races live on TV, just that their wagering platform has to have access to it. Thus, NBC or ESPN, or TVG for that matter, can still have exclusivity on the TV side. This is essentially a prisoner's dilemma. If TVG can be the big dog and exclude others, they do better for themselves, but the pie as a whole is smaller. If we abolish exclusivity, distribution is increased and overall handle will be as well. It's ridiculous how difficult we make it to get down on a race. Getting rid of exclusivity will help make it easier.
Brad raises a great point about exclusivity of pools. But I tend to disagree. (Brad I hope this doesn't mean you won't bring me chocolates next time you're here). The word distribution is convoluted as it can take on 2 meanings. Non-exclusive signals will increase the availability to bet on those tracks, but it will not "incentivise" those w/ the signal to spread it via other forms of media than their computer screens. I think we can all agree that the TV is still the best way to watch racing, and no one really wants to spend a day in front of the computer screen handicapping the races. The computability of your own home is sort of thrown out the window if I'm sitting there watching a 2 inch delayed shitty camera. A non-exclusive agreement allows freeloaders on the system. Why would TVG air Cali horse racing in Cali when they know that some of the handle they create will go through expressbet and youbet, and they don't get paid?
Again is TVG playing fair? Probably not, but their business model, I believe to be correct.
I think some of the blame falls on the betting platform for not willing to pay the fee set by owner (in this case TVG).
This is going to lead to a bumpy couple of years in horse racing, at a time when we least need this. But, it will take time for people to realize exactly what a signal is worth.
My guess was that the idea of Magna and CDI was to pool enough sites together that your one group of signals would be enough to fund a platform exclusively. That really hasn't worked. CDI is selling assets now, and Magna is Magna. TVG beat them to the punch and got some really sweetheart deals because of this and now are on their bully pulpit, but if they continue to be so obstinate they will lose CDI, and who knows what next, NYRA? Where will the channel be then? If you are a horse racing fan you better start praying for all of these greedy bastards to start playing nice, and/or go to a business class. |
