It was great to return from my two-day respite to read lots of great views on the pari-mutuel model and all that goes with it--takeout, rebates, signal pricing, etc.
Obviously none of us as a single entity has all the answers, but certainly all of us collectively have some answers or at least some good ideas.
Someone said that the $2 bettor gets a rebate in the form of not hurting his/her price when he bets whereas the $10k bettor does hurt his price when he bets. I disagree with this line of thinking because the $2 bettor is at a tremendous disadvantage by not actually knowing the price s/he is getting when s/he places a wager. How often is the price at even 1 minute to post the off price?
What I do agree with is the point that the vast majority of horseplayers, and this goes for some big bettors I know as well, are not price sensitive. I would love to see takeout of 10% for WPS, 13%-17% for exotic wagers, and 20% for super exotic wagers, but part of me would like to see a track try 30% takeout as a starting point to see how it affects business.
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Hold off on that 30%.
ReplyDeleteMr. Brunetti at Hialeah already tried that. The take was set at roughly 22%-28% to squeeze every drop out before Hialeah got shelved down in Florida.
How I remember some weird looking odds flashing on the toteboard. The favorite would be at 6/5, second choice at 8/5 and third choice at 2/1 in a five or six horse field.
Not only the bettors shunned the product but the horsemen did not support Hialeah racing in its final days. If Hialeah returns, I fear more of the same disdain towards the customers.