Betting on Horse Racing
There’s plenty of speculation as to why horse racing declined as a major American sport since its last heyday in the ’70s.Was it the decision not to broadcast races on network TV, the spread of state lotteries and Indian casinos, endless industry infighting, changes in demographics, or even the relaxation of clubhouse dress codes as this writer suggested?
Regardless, the most pressing question is whether or not racing can ever recover? I believe it can, but it requires total commitment to the core product of horse racing.
Instead of focusing on horse racing, in the sprirt of “if you can’t beat ‘em, join ‘em,” tracks are pursuing slot machines with reckless abandon. And why not? They provide a steady stream of revenue, and for many tracks, a lifeline.
But the “racino” revolution caused a crack cocaine-like epidemic within the industry. Profits haven’t created more racing fans and bettors, only more racinos.
While tracks spent millions building slick casinos, horseplayers were relegated to crowding around faded TVs in a neglected corner of the track to bet the races. Tracks simply replaced one group of gambling degenerates with another, because they’re all the same, right?
Wrong. The Horseplayers Association of North America (HANA) membership poll indicates their supporters are generally well-educated and, you might assume, have high incomes as well. I’d wager your average horseplayer represents a more appealing customer than the average slots player. A target market with expectations for quality, customer service, and unlikely to frequent tacky slots parlors or “all can-eat” buffets for that matter.
However, racinos are the new reality. In most cases, slots machines & poker rooms are the difference between a race track’s profitability or bankruptcy. And as more and more states legalize slots, it’s spawned an arms race of sorts. For instance, fearing slots in neighboring Maryland, West Virginia approved table games and Delaware approved sports betting.
Where does it end? Perhaps with states legalizing every possible casino game imaginable. For state politicians facing overwhelming state budget deficits, raising money through legalized gambling is more palatable than raising taxes or cutting services.
Given this situation, you must wonder if anyone in the horse racing industry truly believes in its own product? Yet for horse racing to become a viable and vibrant sport again, re-focusing on the core product is essential.
Horse racing is a great game, I believe the greatest. But it’s not the easiest for newcomers to appreciate, or even understand at first. In order to grow, racing must become more customer-friendly and accessible.
However, with a neglectful industry in disarray, horse racing is adrift. Those most likely to still believe in horse racing’s product–the horseplayers themselves–are the best qualified to spark its revitalization.
To that end, I’m creating WirePlayers.com - a boutique, customer-focused ADW site that will feature a first class internet wagering platform. Admittedly this is only a small step, but I hope one that’s in the right direction. While I can’t guarantee success, I can say with certainty that WirePlayers.com is betting on horse racing. Is anyone else?
18 December 2009, 10:02 am
Wireplayers wrote:,
Given this situation, you must wonder if anyone in the horse racing industry truly believes in its own product?
_________________
Obviously they don’t.
And we’ve got gaming companies coming in to take over the racetracks such as Pennwood, Boyd’s, Harrahs’s MTR Gaming
Why would they care about catering to the horse racing customer? Why would they care about lowering the takeout rates and building a proficient, profitable and loyal base of fans that come to the track to wager?
Why should they care about the future of the parimutuel industry?
The invasion of the gaming companies are the problem at the very root of why Horse Racing finds itself lowering purses, reducing racing dates, and finds the grandstands emptying and leaving enough room for …
…yet another slot machine.
19 December 2009, 12:09 pm
Short sightedness is what plagues the industry. Fear in this economic climate, which has been declining in the U.S. for at least five years, caused racetrack owners to react desperately. They’ve found a revenue stream provided by players who don’t appreciate the mental exercise it takes to participate in horse racing. The real problem started with simulcast wagering which spawned ADW sites. Thanks to that, horse racing has been on a slippery slope for the last 25 years.
Horse racing players and enthusiasts must deal with varying distances and surfaces, human variables from the vets, farriers, trainers, jockeys, starters and to a lesser extent owners, and the weather. There’s a main track that is a 1 1/2 miles oval, others are a mile, while smaller tracks can be 5/8 mile where a route is around three turns.
Slot players know that they will find whatever gimmick machine they prefer in every single casino. Nickel players will allow machines to give them some 20+ chances to win which means they’re actually playing on a dollar machine. They can be certain to find a stool to sit on, the familar metal shape and colors, a spin dial that doesn’t require the strength/endurance it took to pull in the past, and a machine that will suck up money without needing a cashier or change cart.
Casinos have made it easy for a player to stay in front of a machine as long as they want, in a temperature-controlled setting, with drink hostesses providing the “nourishment” or “courage” to stay the course to winning or losing. They force people of all shapes and sizes, differing ages, and varying physical abilities to come to their facilities. There’s no online slot machine games taking money out of the casinos.
Racetracks require elderly and/or disabled patrons to brave the weather extremes, spend at least $10 prior to placing a bet or finding a seat, get up every 20-30 miniutes to find a cashier or self-service machine, then be absolutely removed from the simulcast environment when they return to their seats….that is if the paper they placed to save their spot hasn’t been blown away and another player argues there was no paper present before sitting down.
By ignoring “creature comforts” for the enthusiasts and players alike, they’ve forced people to other into their homes to watch other sports and onto the internet to play poker. With all due respect, your proposed ADW site will do nothing to recruit fans to the racetracks . You are simply preaching to the choir. You’ll be fighting sites like xpressbet, youbet, tvg, etc. for market share of a shrinking base of horse racing fans.
Without a hierarchy in racing to protect the game for at least the rest of this century, the race horse owners and trainers, individual racetrack owners and ADW companies will run horse racing into the ground in their market share tug of war. Horse racing will eventually fade further into the sports abyss and many racetracks will look like Hialeah Park as it was for decades.
Sorry for the negativity, just calling it as I see it.
20 December 2009, 12:51 am
TKS – great point! Companies are investing in race tracks for the slots. It has little to do w/ horse racing and the results speak for themselves.
AmCap – Your negativity is justified and your analysis of the situation is spot on. While I love going to the track, the lack of customer service, modern amenities, getting “nickel and dimed,” and simply not having time to fight traffic, has made internet wagering the better option. However, Del Mar, Saratoga, and Keeneland show that people will travel miles for a quality racing experience.
Re: the imminent ADW; it may not recruit new players to the game but it can attract casual horseplayers that aren’t currently betting online or going to the track for many reasons. Pursuing efforts in parallel to get more people interested in racing. Time will tell . . .
Thanks guys for the great comments.
23 December 2009, 1:51 pm
I agree with most of what has been said, but we also need good marketing to get throughbred horse racing back on it’s feet. I think one of the biggest problems horse racing is facing is to create a fan base with people my age, the next generation. We’re the ones who are going to be going to the tracks and watching the races on tv 40-50 years from now. When Churchill Downs had thier night races that was genious and paid off in the best possible way. Horse racing needs to become a sort of “niche market” by showing how different it is from other sports in a good way. Fans like continuity and there isn’t much of that in racing right now. Sure the trainers and jockeys stick around for years, but to be honest, they are only the supporting cast. The real story is always about the horses.
24 December 2009, 1:21 am
Brian – 100% in agreement that the sport needs to get its top race horses to have longer careers. But w/ so much more money in breeding than racing owners are incentivized to retire to stud early. Not to mention issues with overall “soundness” due to breeding, medication, and training practices.
Attracting the younger generation is the Holy Grail. Unfortunately, we can’t depend on current industry leaders to make it happen based on their woeful track record. Mktng breakthroughs are likely to come from those like yourself who represent a younger generation with fresh ideas.