Slots

I once (famously) said, "Turns out you can lead a granma to a slot but you can't make her bet at the window." And overall, if you search this blog for the word "slots", you'll find I've been an opponent of them. I'm not against the horse industry or the people in it. I understand the economic impact the sport has on green space and employment. It's just that I never thought slots were organic to the horse racing business, and it's tricky for a well run business to add something foreign let alone the Einsteins we have working in horse racing. And now it's pretty much fact: Slots have not helped horse racing in the way they were proposed to help, they have only allowed horse racing to jack up purses, line the pockets of the casinos & state, and push the horse fan farther out the door. Search Google News today for "Horse Racing" and the top stories seem to be all about it, all focusing on Maryland. Here & Here. Slots opponents now have a lot more ammunition to work with, and their argument is coming to fruition; that by allowing slots you open the door to much more, see West Virginia Table games and Delaware sports betting. Slots was first pitched as a saviour; to get people back in the building after losing them to simulcasting halls, but now we see it for what it really is: trickle down economics, and we all know how that turned out. I'm sick and tired of all this bullshit. The sport makes money. It's an accounting trick when they say it's not, otherwise you wouldn't have everyone and their mother bidding on the NYRA franchise and there are others out there turning a profit as well. The truth is that there are way too many hands in the pot, and the money is spread too thin. Own up to this fact you greedy bastards, fix it, cut the fat, and get your fans back in the door. There is nothing wrong with the product.

Exclusivity is RIGHT

Reading over at LATG that The Works is now in jeopardy because of the contract dispute between Churchill and TVG. And, I've given it a lot of thought, you know what... I think exclusivity is the way to go. Please let me know if this arugment is wrong: I have Cablevision, I subscribe to a special sports package that has TVG for the sole purpose of getting horse racing in my house. I used to only bet when I went to Monmouth Park, I'd rarely take a trip to the OTB during the winter months to lay a bet down. Now, New Jersey has 4njbets.com a legal way for me to wager at home (p.s. that does have video but I rarely use it because it looks like 1950's TV), and I signed up. I keep a small balance in it so that if something catches my eye I can run to my computer and put $2 on a horse, or I make a day of it and invite some buddies over where we can churn anywhere from $200 to $1500 bucks. Who should get the credit for making me go and wager? TVG. Without TVG I wouldn't catch any horse racing, and I certainly wouldn't invite my dead beat friends over. I only bet what I can see, so therefore TVG deserves a cut. If TVG didn't get a cut, they'd have no incentive for increasing their viewership. Now what % cut should it be??? I don't know, but exclusivity is a good business model. TVG has turned a lot of boring weekends into must watch horse racing for me and a lot of my friends, and I believe TVG when they say that they do increase handle (I don't know about 900%, but a probably a bigger number than you think) Not every weekend is the Kentucky Derby, and we all know that TVG isn't increasing handle on Derby weekend, but they are probably increasing handle on Stephen Foster weekend and its undercard, and TVG deserves a healthy cut of it. Think of how a hedge fund is set up. They take rich peoples money and take 3% off the top, then everything above 15% they get HALF. Yes HALF, you don't see rich people running around like a chicken w/ their head cut off complaining about hedge funds: No you see rich people looking to give them more money. Now what should happen is CDI and TVG should get an outside auditor to figure out exactly how much of increase TVG is responsible for on CDI races over the course of a season and they should work together to negotiate a fair rate. Do I think CDI got taken advantage of in the first round of negotiations? Probably, but whose fault is that? I would blame CDI. They are a big company w/ big boys (John Asher included). Now w/ round 2 of negotiations CDI shouldn't try and swing the balance so far back the other way. They should admit they got hosed on deal 1, and look for a fair deal 2, they are not going to be able to hose TVG. The fact is handle will be down at CDI this year if they don't get back on TVG. Even if they do go on HRTV, even if they do create their own network, it's not seen in as many houses as TVG. The tracks that do sign exclusive deals (fair ones) will be rewarded. Monmouth joined the track rotation this year, and you'd be crazy not to think that my betting won't go up at Monmouth this year with me being able to play from home. Monmouth's handle will explode this year as more eyes focus there for the BC. By going on TVG Monmouth is getting every handicapper used to the quirks and tricks that is Monmouth. I'm sure many players will start betting Monmouth earlier, and now they'll be able to bet it easier as it will be on T(f'ing)V. Exclusivity doesn't work if your goal is to only show Gr I races. Handle on those races are probably more stagnant (their pools are already healthy and increasing it the same % as increasing a $5,000 claimer at MNR is a lot harder to do), but TVG isn't trying to get more people to watch prime time racing, TVG is trying to get you to watch more racing period. If every signal was non-exclusive why would it ever be streamed on TV? By putting it up on TV you are opening it up to everyone's betting platform. You can bet all the TVG races on a TVG account, but you can also bet it on Youbet, ameritab, NYRA, njbets, and illegally. Doesn't it make sense that those companies should pay the provider and the distributor? There's no question the old paradigm of %'s is going to change, and the first battle is turning out to be a game of chicken, that isn't working for either party. To the people at TVG, congrats. You got one by a lot of people, you probably made a killing, now stop being greedy bastards, work your European crap out, and respect that CDI has some of the premier racing in the country in Spring and Fall/Winter. To the people at CDI, stop whining. You don't poop ice cream. A lot of your races are boring and you can't get on more tv any other way. Now will the both of you get back in a conference room and work something out. You are screwing me, and a whole lot of other fans. And if you don't work something out I'm not betting the Derby, that probably made you laugh right? You won't miss my $100 bucks on derby day, but maybe you'll miss it the following weekend when I bet 3 horrible races leading up to a stakes race.