attheraces Gets Good News from Sky
Although attheraces isn't an official partner with Sky Broadcasting, news that the company experienced a jump in bets via interactive TV is great for a company that needs growth in betting turnover to survive.
Sky announced that the last quarter of 2002 saw a huge increase in bets placed through its interactive TV platform.
In its original business plan, attheraces envisioned that in its second year gross revenue from bets into Tote pools would total just over £100 million, of which £17 million would come from interactive digital television betting turnover.
Currently, attheraces' betting volume is believed to be £300,000 a week, equivalent to just £15.6 million a year.
Sky's results, which came as part of the organization's half-yearly report, revealed that although betting turnover as a whole had fallen, interactive TV turnover had more than doubled.
BHB Gives Industry Three Weeks to Name Nominee
With time running out on finding a new British Horseracing Board director to fill the gap when Lady Burnham steps down after a five-year run in May, BHB chairman Rhydian Morgan-Jones informed those in the industry on Thursday that nominees needed to be in to his office within three weeks.
He asked for those in the industry to identify someone who has a working knowledge of the sport and a strong commitment to its success for the benefit of its investors and workers.
In the event that more than one name is put forward, a formal election will take place on May 9. The appointment begins on June 1, for a period of up to four years.
Pataki Looks to Tracks For Increased Revenue
New York Gov. George Pataki is trying to get a stalled plan for video lottery terminals at racecourses back on track.
As part of his new budget, Pataki is proposing to make it easier for tracks to gain financing to build the racinos. To drive up handle, the governor also proposes bills that would authorize unlimited evening simulcasting of thoroughbred horse racing at OTB parlors and eliminate minimum account balances for telephone bets at tracks and OTBs.
Gambling revenue is a key part of the governor's budget, including $1.8 billion from the Division of Lottery, in addition to plans for new taxes and fees and deep cuts in education and health care.
The governor's bill would extend the hours of operation that tracks could be open for video gambling. He would make the VLT law permanent, dropping its proposed expiration in 2007, while letting the tracks keep more of the revenues they were supposed to share with horsemen.
Youbet.com Raises $2 Million from Private Investors
Youbet.com, the online horse race wagering company, has raised $2 million by selling notes to private investors, the company said on Wednesday.
The notes bear 10 percent interest and are due in two years, according to Chuck Champion, Youbet's chief executive officer. The notes also entitle investors to purchase two-thirds of a share of the company's stock for each dollar invested. Champion said he could not disclose what price the investors would be required to pay for each two-thirds share.
Youbet's stock was up more than 10 percent on each of four consecutive trading days stretching back to last week, rising from 97 cents at the market's open on Feb. 13 to $1.62 at the close on Feb. 18. On Feb. 19, however, the stock fell 11 cents to $1.52.
Youbet officials recently announced that the company had positive cash flow for the first time in the fourth quarter of 2002.
OTBs Taking a Hit in Illinois
As the long and drawn out harness-horseman strike in Illinois nears the two-month mark, officials with the state's OTBs are seeing their handle dip dramatically.
The Illinois Harness Horsemen's Association went on strike against Chicago-area Balmoral and Maywood racetracks on Jan. 1, refusing to race until a new contract resolves purse disputes.
The state hasn't released official numbers, but many operators indicated during recent working sessions that business was down.
BHB Responds to Arena Leisure Comments
In response to claims made by officials with Arena Leisure attacking the BHB's ongoing struggle with passing a future race-funding plan, BHB Chief Executive Greg Nichols shot back with a statement of his own last week.
"The board, with the exception of the two RCA appointees, has, as BHB's statement clearly said, 'always been of the view that the RCA/racecourses breached the Future Funding Plan' and has obtained legal opinion to this effect," he said.
Nichols also said that the BHB's statement made it clear that the board felt "the Future Funding Plan is dead and that it saw no constructive purpose over further debating the reason for its demise," he said.
With the plan dead, Nichols said the BHB decided to not move forward in seeking legal action against the RCA/racecourses despite Arena Leisure's insistence that they should.
British Tote Increases Race Sponsorship
The Tote on Tuesday announced an increase in its race sponsorship portfolio, covering 220 races from the Cheltenham Gold Cup to the Ebor, to a record £2.7 million.
Sponsors as well as various owners' groups throughout the United Kingdom welcomed the announcement, despite a fifth consecutive fall in the annual rate of increase.
Jim Furlong, BHB director and president of the Racehorse Owners' Association, said he supported the increase. But he took the opportunity to say that the future of the sport's biggest sponsor and pool monopoly can only be secured if it is in the hands of the racing industry.
The Tote revealed that it will spend a total of £2,665,194 in supporting more than 220 races this year.