Tuesday, 24 March 2015

A Diagnosis for the Racing Industry

Pocono Downs (I'm not calling it The Downs at Mohegan Sun Pocono) kicked off their 2015 season the other day, with nice little tweak to their wagering menu.

      The Pennsylvania harness oval has increased the takeout on their Pick 3 wager from 15% to 25%. Harness Racing America has a nice little article showing how that affects the payouts.

      Pocono is a track known for loving their horseplayers, what with their 30% takeout on triactors and superfectas, and this is just another addition to their genius.

     Now, I'm not 100% sure why Pocono did this; there was no press release announcing the change and their casino is successful enough that they don't have issues with purse money, but let's assume they think it's going to increase their revenue.

     The horse racing industry loves this idea. Raising prices will raise revenue. It seems like a simple enough idea. California did it a few years back (and tried it again on a smaller scale with Daily Doubles last year), Churchill tried it last year, now we've got Pocono. This is a racing industry power play.


       Albert Einstein defined insanity as "doing the same thing over and over again and expecting different results." This definition fits the racing industry to a tee. Tracks repeatedly raise takeout expecting revenues to increase. Revenues decline, the industry can't figure out why, and they raise takeout again.

      I'm no doctor, but it is my opinion that the horse racing industry may very well be insane.

1 comment:

  1. Bet exchanges instead of the tote... limited in types of bets (W & P) but the take isn't insane.