Ok folks, it's time to break out the shovels to bury horse
racing, again.
We came across an article on ESPN.com written by Bill Finley
entitled "2005 was a lousy year for horse racing." In his
article Mr. Finley cites 9 reasons why 2005 was such a bad year
for horse racing in America. Although we agree with several of
his observations, number 8 on his list, "U.S. Pari-Mutuel Handle
Falls", should have been dealt with more objectively.
Despite all the cries of gloom and doom that have been ongoing
since the unfortunate decision in the fifties to reject
television's offer to broadcast horse racing nationally, the
sport has continued to grow. Second only to baseball in overall
popularity, horse racing enjoyed 11 straight years of increasing
handle (total amount of pooled wagers) before this bemoaned 0.5%
decrease. According to Mr. Finley, "an ominous sign of things to
come."
Yes, horse racing does have its problems and challenges, but it
also has a lot going for it. It's the only sport offering
legalized wagering in the majority of the United States and
across most of the world. Why it's even legal to bet on horse
racing in China where basic human rights are hard to come by.
The advent of simulcasting in the nineties made it possible for
tracks to increase their own handle while boosting their
revenues by accepting wagers on races from other tracks.
Legalization of off-track betting facilities, phone wagering and
internet wagering has created a climate where over 87% of the
handle is now generated off-track. This may hurt race tracks'
hot dog and popcorn sales, but should lead to increased
profitability.
Several states have enacted legislation allowing slot machines
and other forms of gaming on-track. Tracks such as Mountaineer
have used this additional source of revenue to improve their
facilities, increase their purses and upgrade their overall
level of racing. This legislation has also made it attractive
for casino owners, such as Harrah's, to purchase and operate
horse racing venues as a part of their business strategy.
So what is wrong with horse racing? Well, for lack of a better
answer... horse racing. By that we mean the tradition mired
establishment of horse racing where "because we've always done
it that way" seems to be the golden rule.
Where did that harbinger of doom, the missing 0.5% of handle go?
Our best guess is that you'll find that, and much more, going to
the enterprising non-pool race and sports books that have
cropped up to better serve today's horse racing fans. Most of
these on-line books offer full track odds, signup bonuses, cash
back on wagers, and give refunds for scratches, instead of
forcing the bet to the track favorite. Oh, and did we mention
that most don't impose taxes of any sort on winnings.
In addition to offering the full menu of track bets, i.e., Win,
Place, Show, Daily Doubles, Exactas, Quinellas, Trifectas and
Superfectas, some have started offering additional types of
wagers such as a two horse match bet. This, in our opinion, is
the most significant opportunity for horse racing today. In an
era where proposition bets on football range from the point
spread to which way the wind will be blowing at half time, horse
racing is missing the boat. They've failed to recognize what Las
Vegas has known for some time, namely that gaming is
entertainment and that the way to increase 'handle' is to offer
more types of wagers. This year's Superbowl offered over 300
proposition bets resulting in a record setting day for the Las
Vegas sports books with over 94 million dollars wagered. To put
that into perspective, that's about .6% of the 15 billion
dollars wagered annually on horse racing.
Successful horse race wagering takes a degree of skill and
research. Unlike most sporting match ups where you have a
fifty-fifty chance of winning by random choice, with an average
field of 8 horses, the horse player only has a 12.5% chance of
winning by chance. Let's put fun into the sport for the casual
fan. A two horse match up takes wagering on horse racing back to
its earliest and simplest form; "I bet my horse can beat yours!"
But there's no need to stop there, horse racing offers a myriad
of options for wagering; which horse will be in the lead at each
point of call, which jockey or trainer will have the most wins
for the day, and how about betting a horse to lose. These are
just a few options that come to mind.
Horse racing's traditions give it unique flavor and character,
but to be successful, it must be willing to evolve to catch up
to the present and to meet the future. We most certainly hope
that it does.
About the author:
C Wayne is the Executive Vice-President of Picks and Plays, Inc.
and an author and lecturer on gaming and handicapping. You are
invited to visit http://www.picksandplays.com and receive free
membership and a free daily report from the home of 'The Best in
Handicapping'.
C Wayne
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