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Wednesday, February 28, 2007

Capital Play Wants More of Your Capital

- The Australian consortium Capital Play Ltd is back in play in the franchise race according to Senator Bruno, who referred yesterday to there being four bidders for the franchise. A look at their bid reveals some proposed increases in takeout, substantial ones in certain cases. They discuss the decline in win betting as a percentage of overall wagering, and write that "Emphasis will have to be placed on increasing the size of the exotic pools exponentially." And while they propose to leave the takeout on win betting unchanged at 15%, and say that that rate "will probably have to decline over time," not so for exotics:

Daily Double - 20%
Quinella - 20%
Exacta - 25%
Superfecta - 25%
Triple - 25%
Pick Three - 25%
Pick Six - 30%
Grand Slam - 30%
Currently, the takeout rates are 17.5% for multiple wagers (two horses), and 25% for exotics (three horses or more). Exacta bettors (like myself) come up as the biggest losers under their proposal.

2 Comments:

Lenny said...

When will these idiots realize that increasing takeout reduces total wagering? Increasing takeout makes it harder to turn a profit. Why are all the "big" bettors playing with rebate shops? It is because they reduce the takeout in half by getting back 10% in rebates. Maybe the tracks would get some of this action if they lowered takeouts to a max of 10% across the board on all exotic wagers and under 10% for straight and multiple wagers and in the process put the rebate shops out of business because without large takeouts they will not be able to make a profit.

Lenny

Anonymous said...

lenny, we all agree, but the track simply can not lower takeout due to regulation. They currently keep only about 2% of every dollar wagered, the rest is earmarked.