Revenues Increase with Betting Duty Halt
Bookmakers' turnover in the United Kingdom could be up by 30 percent since the abolition of the betting tax, according to a report by the British Horseracing Board.
The BHB's chairman, Peter Savill, said the increase in turnover is equal to a tax break worth £250 million a year.
However, the chairman criticized the bookies about the impasse over the future funding of racing. The BHB extended its introductory offer of a reduced-rate, two-year deal on royalties for the sport's picture and data rights--which is still under examination by the Office of Fair Trading and European Court of Justice--until Dec. 31.
Bookmakers who delay signing until 2002 face a 20 percent increase in costs.
Hawthorne Park Puts Popular Promotion on Hold
One of Chicago's most popular racetracks, Hawthorne Park, pulled its popular $50,000 daily Pick 6 after it was hit for the fourth time in five racing days last week.
Two bettors each cashed out for $19,983.40 out of a total mutuel pool--with carryover--of $29,630.
In the wake of the big scores, Hawthorne management is convening a special executive council session to decide whether the Pick 6 will return. The track lost an estimated $65,000 on the wager in the first week it was offered.
New York Turns to Gambling to Increase Revenue
New York Gov. George Pataki last week endorsed historic gambling expansion meant to replenish revenue lost to the state when the World Trade Center was attacked.
In signing legislation approved by lawmakers last week, the governor cleared the way for a half-dozen new casinos, video betting terminals and a multi-state lottery in the largest expansion of gambling in the state's history.
State leaders hope to raise an additional $1 billion annually within about three years.
"It was worth the struggle. It was worth the effort, worth the fight," Pataki said of the legislation.
Casinos are planned in the Catskills, Buffalo and Niagara Falls. Leaders in Niagara Falls have said for years that without a casino, the city can never hope to tap into the non-stop flow of tourist dollars to neighboring Canada, where a casino is doing booming business.
Breeders' Cup Handle Drops Slightly
No official word had been given, but The New York Times reported last week that for only the fourth time in 17 events, mutuel handle dipped from the previous year during the Breeders' Cup in New York.
The final worldwide total of $98.7 million represented a drop of slightly more than $2 million from BC XVII at Churchill Downs.
Things Looking Up Down Under
While the total handle from the Breeders' Cup may not have been what many would have liked, Tabcorp Holdings, an Australia-based account wagering service, reported increased revenue in each of its three gambling businesses during its fiscal year.
At the company's annual meeting in Melbourne, officials said they expect operating profit for the year to increase by at least 10 percent.
In the financial year to date, the Victorian horse and dog race betting business increased revenue by 6.8 percent to AU $128 million, Star City rose 5.1 percent to AU $198 million and gaming machines rose 3.3 percent to AU $291 million. Occupancy rates at Star City's hotel are at 78 percent.
Maryland and TVG Agreement Clears One More Hurdle
The Maryland Jockey Club and Television Games Network got a step closer this week in putting the finishing touches on a deal between the two that would bring account wagering to Maryland.
The two sides are hoping to use TVG's Oregon hub, but at its most recent meeting the New Jersey racing commission raised questions about whether that complied with state law.
The issue was resolved once tracks and TVG responded with contracts explaining the deal, and both the racing commission and attorney general's office now appear satisfied.
Ken Schertle, executive director of the commission, told the Daily Racing Form that the commission's concerns had been satisfied and that one sticking point, a performance bond to cover account deposits by Marylanders, was being rectified with a $100,000 bond.
The Washington Post, meanwhile, reported that the Maryland AG's office also was satisfied with the arrangement, apparently clearing the way for operations that MJC president Joe DeFrancis said could generate between $20 million and $40 million in annual handle.
Vegas Firm Teams with Greyhound Channel
US Off-Track, a trademark of Greyhound Channel Inc., has signed a letter of intent with Las Vegas-based Global Cash Access to develop a proprietary payment system for Internet off-track wagering.
"Internet gaming has become a serious e-commerce factor, but the industry has been challenged by the fund transfer component," said Kirk Sanford, Global Cash Access CEO. "Our network will facilitate safe online gaming transactions, providing a secure form of payment to minimize risk of fraud for both the online site operator and gaming customer."
Global Cash Access is a supplier of customer relationship marketing technologies, cash access and financial management services to the gaming industry. US Off-Track holds an interactive and simulcast wagering hub license granted by the Oregon Racing Commission.
The companies said the Internet betting payment system will be launched in the first quarter of 2002.
Magna Looks to California to Cash In
In a telephone conference on the company’s third-quarter earnings on Monday, Magna Entertainment Corp. officials said they are pursuing opportunities related to California’s legalization of account wagering, set to take effect on Jan.1, 2002.
"We are gearing up to complete the application procedures in California for a hub operation to handle account wagering pursuant to the new legislation," said Magna CEO Jim McAlpine.
Establishing telephone and then Internet wagering capabilities are first two steps Magna plans to take.
"We believe both of these platforms will be ready when the law becomes effective in 2002," McAlpine said, adding that negotiations are still underway for interactive television production and distribution capabilities.
Simulcast Pricing is Hot Topic at Conference
As more than 350 simulcast coordinators gathered at the International Simulcast Conference last month, the hot topic was simulcast signal pricing.
At a "Factoring in the Price of a Bet" session, racing economist Richard Thalheimer discussed his work to develop an "optimal takeout rate" through the use of statistical modeling to determine the impact on handle and revenue.
"Handle will increase when takeout is reduced," he said, "but there is an optimal takeout rate point at which revenues are maximized. Everyone should share equally in gains or losses from the change in takeout."