Interactive Race Wagering in North America - TrackPower

24 March 2000

TrackPower has found, at least for now, that success begins with making the right connections. After opening up late last year, the company began strategically aligning itself with some big players that can make TrackPower a globally dominant horseracing entertainment and betting service. The company is finishing it's freshman year in the industry with some clear-cut plans for its sophomore year and beyond.

To begin with, TrackPower is aggressively pursuing the higher-end active horse player by using an integrated broadcasting, telephone and online pari-mutuel wagering system. New customers are attracted through a combination of direct mail and horseracing industry publications. Already, the company can boast more than 50,000 account holders that use TrackPower for information and betting services.

Betting with TrackPower is easy. American punters call Penn National to set up a betting account, which has a recommended $25 minimum.

At the same time, TrackPower executives have broadened their betting horizon. The company is currently live testing interactive betting, before making it widely available to its customers. Eventually, wagering would be made through a closed-loop system, similar to that offered by Youbet.

The new betting options make a huge difference in how much punters will drop on the ponies. American punters probably bet about $800 a month using telephone accounts, while online betting averages are expected to double that amount, according to Graham Simmonds, vice president of TrackPower.

The company has made broadcast information services free, explained Simmonds, in order to encourage betting. Information products, however, vary in price. PC and television wagers will be free, while telephone punters are charged $1 a day for unlimited usage.

The company's aggressive expansion plan recently switched into high when it signed deals with eBet Limited and Penn National Gaming, Inc. Through the agreements TrackPower will beef up its wagering options, and leverage their money-making clout.

Even more changes are in store. Later this summer, the company will launch a portal website featuring streaming live and archived video, various information products, stock portfolio tracking, email services and information about additional sports. Simmonds also indicated that major announcements will be made in the coming weeks.

The futures stretches brightly ahead for the company, with numerous plans to grow its customer base nationally and internationally. Its focus, according to Simmonds, is to create a strong brand identity in the industry.

URL:		www.trackpower.com
Address:		580 Granite Court Pickering, ON CANADA L1W 3Z4 Ph: 905-839-1430 Fax: 905-837-1133
System:		Programming is available on 2 channels via DISH Network or WebTV. The company is considering expanding onto cable and other satellite network systems. Later this summer, TrackPower will go to a closed loop secure system, compatible with any browser. Additionally, a new portal web site offering streaming and archived video, plus email, stock portfolio tracking and a wide-range of sports information is planned.
Fees:		TrackPower, in order to encourage betting, offers free access to broadcasts. Information products vary in price.
Benefits:		Provides live, full-card coverage of thoroughbred and harness racing broadcast around the clock. Punters can place bets via telephone, and soon using PCs and remote control (WebTV). Customers can access past performances, programs and other detailed information for viewing and printing.
Tracks available:		TrackPower covers numerous race tracks around the globe, including exclusive access to UK tracks for US audiences. Penn National allows wagering on 70+ tracks, while eBet covers all New Zealand and many Australian tracks. Following is a listing of tracks customers can access using TrackPower's broadcasting services. Thoroughbred Tracks: Beulah Park, Grove City, UT; Canterbury Park, Shakopee, MN; Charles Town Races, Charles Town, WV; Colonial Downs, New Kent, VA; Delaware Park, Wilmington, DE; Evangaline Downs, Lafayette, LA; Fair Grounds, New Orleans, LA; Garden State Park, Cherry Hill, NJ; Great Lakes, Muskegon, MI; Hawthorne Race Course, Grantville, IL; Louisiana Downs, Bossier City, LA; Meadowlands, Meadowlands, NJ; Monmouth Park, Grantville, PA; Penn National, Grantville, PA; Retama Park, San Antonio, TX; Rockingham Park, Rockingham Park; Sam Houston, Houston, TX; Santa Anita, Arcadia, CA; Delta Downs, Vinton, LA; Remington Park, Oklahoma City, OK; Fairmount Park, Collinsville, IL; Tampadowns, Tampa Bay, FL; and Australian Racing, Australia. Standardbred Tracks Colonial Downs, New Kent, VA; Freehold Raceway, Freehold, NJ; Garden State Park, Cherry Hill, NJ; Harrington Raceway, Harrington, DE; Meadowlands, Meadowlands, NJ; Northfield Park, Cleveland, OH; Baily's at Ocean Downs, Ocean City, MD; Pocono Downs, Wilkes-Barres, PA; Plainridge, Plainville, MA; Dover Downs, Dover, DE; Fairmount Park, Collinsville, IL; Little Brown Jug, Delaware, OH; and Northville Downs/US Trotting, Columbus, OH.
Exceptions::		TrackPower cannot provide video to Canadian customers, per legal constraints. Video is provided for US customers only, plus company officials expect wider coverage globally soon.
Partners:		Penn National Gaming Inc. is the betting licensee, while TrackPower manages the telephone accounts. Telephone wagering is available through Telebet/Dial-A-Bet, and offers betting on 70+ tracks. Brisnet.com is the information provider. eBet Limited interfaces with any tote using a closed loop system, and provides Internet betting services covering all New Zealand and additional tracks in Australia. Through a new partnership with Penn National and eBet, TrackPower will establish an integrated broadcasting, telephone and online pari-mutuel wagering service. As part of the partnership, Penn National and eBet will each own approximately 26.5 percent of TrackPower. Post Time Technologies recently signed a three-year exclusive agreement providing archived horseracing video replays for TrackPower viewers.
Wagering:		PC and television wagers will be free, while telephone punters pay $1 per day for unlimited use. Bets are currently placed over the telephone using Telebet/Dial-A-Bet, operated by Penn National and managed by TrackPower. In addition, TrackPower is currently live testing interactive betting, which is likely to be made more widely available this spring. Eventually, TrackPower will use a closed loop system, similar to Youbet. Unlike Youbet, which uses an application downloaded by CD-ROM onto customers' PCs, TrackPower will offer an HTML-based system capable of running on any browser.
Stock Activity:		TrackPower, using the symbol "TPWR.OB" is traded OTC BB. Yahoo's 52-week range shows the stock trading at $0.255000 - $3.97.
Revenues:		TrackPower will release their first fiscal year revenues next month. Simmonds indicated that their first year's figures will be low, while next year's figures should reflect the massive changes the company is undertaking.

Vicky Nolan joined the IGN staff in October 1999. She's best known for inventing fire, the wheel and swiss cheese. She can be reached at vicky@igamingnews.com.