- As the legislature apparently moves towards a compromise on the MOU that will grant NYRA its 30-year extension (thanks to Teresa for the link), I hope you had a chance to check out the comments here, particularly the extended version by an extremely knowledgeable, though still anonymous poster. Of the figures provided by NYRA's Disclosure Statement on the percentages of bets it receives from bets made on-track, and those made on NYRA tracks (said in the Statement to be 9.3%) and at NY OTB's (2.5%), he/she wrote:
If NYRA includes the out-of-state handle in the calculation of their wager retention - they're being misleading because NYRA's out-of-state signal sale is the product of negotiation between NYRA and the receiving racetrack. Did they utilize the whole off-track handle in an effort to inflame opinion against the inequity? Can't tell. They didn't address how they arrived at their figures. Given that we are not informed what method NYRA used to calculate their off-track wager retention rate, any discussion of how much money would be left relies on facts not yet in evidence, i.e., the trustworthiness of the 6.8 percentage spread. It could be much, much less. I'd love to read Bennett Liebman's take on this.Well, Bennett Liebman emails:
Looking at the direct (defined as bets placed on NYRA) numbers from the Racing and Wagering Board's annual report, NYCOTB pays 9.3% to NYRA on handleMr. Liebman also refers us back to his Racing By The Numbers report. It contains a lot of facts and figures, but one obviously would have to inspect the statutes and contracts in order to get an exact idea of exactly what the spread between on- and off-track bets are. In any event, it would appear that our commenter had the right idea, and the second commenter correctly points out that I was ignoring the expenses that NYRA would take on should it take over OTB.
At least a half of these payments should go to horsemen, but the exact payments depend on the applicable statutes and the contracts between NYRA and the OTB's. It's fair to say that NYRA gets substantially more than 2.5% on bets placed on NYRA races from the metropolitan OTB's.
Even if the effective spread is just half of the 6.8% as stated in NYRA's document, using the actual figure of $625 million wagered on NYRA bets off-track, that would still be an extra $21.25 million to NYRA, which, in a non-bankruptcy year, would in theory put it within shouting distance of breaking even. But, whatever the exact numbers really are, it's just mind-boggling to me that an industry which generates over $2.5 billion in wagers in this state alone can't stand on its own without subsidies from slots. Something ain't right to be sure. For one thing, the rate at which NYRA, and every other track in the country for that matter, sells its simulcast signals out-of-state is something which needs to be examined right away.
- Michael responded to my post about Jose Bracetty and Patrick Biancone:
Regarding Biancone: had he ever been charged with anything I think race track officials in other jurisdictions could have taken action against him, but since he wasn't charged (and everything we knew about Cobra Venom was technically from leaked sourced reported in the DRF) it makes sense that nothing was done.That's fair, but not the point in my opinion, which I know is in the minority. The State revoked Bracetty's license on the grounds that his "experience, character and general fitness were inconsistent with the public interest and best interests of racing." I think that, after the substance was found - and no matter what the source of the report, the fact is that the substance was present in his barn - Biancone's presence on the grounds was similarly inconsistent with the best interests of racing. Racetracks are free to ban persons on that basis and to protect the betting public. Several did so with the TRPB/Great Lakes Downs jockeys, who were never charged with anything either. Nobody has yet to explain to me the inconsistencies between those two situations.