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                      -- California Horse Racing Boycott - Handle Losses Exceed $100 Million - March 23, 2011

"Platt, in strongly worded comments, said the entire process since last summer has been driven by "utter incompetence."

"Proponents of the takeout increase used flawed revenue projections saying there was little or no elasticity between takeout and handle," Platt said. "They argued handle would remain the same, enabling purses to increase dramatically, and that field size would go up as a result of the increased purses—in turn generating increased handle and revenue. Of course none of that happened.

"HANA gave the legislature a more realistic argument. We told them the CHRB, TOC, and track management were using flawed revenue projections. We told them that racing’s customers see takeout as already too high, and that racing’s customer base would not support further takeout increases. We told them a takeout increase would cause handle to plummet, which in turn would have disastrous long-term consequences for track bottom lines and purses.

"We told them exactly what would happen beforehand, and then watched it play out almost exactly as we called it."
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"Overall, the track had a 93 percent increase in off-track wagering and a 12 percent increase in on-track wagering. In 2010, the track pulled in $7.5 million from on-site wagering.
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"DEL MAR ---- Santa Anita and Hollywood Park have asked the Thoroughbred Owners of California to lower the takeout on daily doubles, exactas and quinellas on an experimental basis at their upcoming fall meets, according to a letter obtained by the North County Times late Saturday night.

The Pacific Racing Association (Santa Anita) and Hollywood Park Fall Racing Association want daily doubles to be lowered from a 22.68 percent takeout to 15.43 ---- the same as a win, place or show bets, which are the nation's lowest ---- and they want exactas and quinellas lowered from 22.68 to 21.68.

The two racing associations are also asking for 50-50 split on the new 50-cent pick five wager. The TOC now receives a higher percentage of the profits from the bet than the tracks do.

The letter comes on the heels of Del Mar Thoroughbred Club CEO Joe Harper announcing on opening day that he was in talks to try to lower some of the wagers that were raised this year.

"Raising the takeout was not a smart idea," Harper said Saturday morning on Roger Stein's radio show. "Raising the takeout may not have seemed like a big deal, but it is a big deal.
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