JCapper Message Board

          General Discussion
                      -- Keeneland takeout increase

"HANA Statement on the Keeneland Takeout Increase
It was announced today that long-time horseplayer friendly racetrack Keeneland has raised their takeout rates. Win wagering, which was at 16% takeout, will now be taxed at 17.5%, while all other bets will go from 19% to 22%. The pick 5 takeout, previously at 19%, will be 15%.

This fall, Keeneland’s exacta and daily double takeouts will be among the highest in North America.

In 2009, outgoing Keeneland President Nick Nicholson said, “We’re very gratified to know that our efforts to promote large, quality fields, a wide variety of wagering options and a reasonable takeout rate have been recognized….. Keeneland is enthusiastic about the future and we’re committed to getting even better.”

Keeneland, as a non-profit under the leadership of strong executives like Nick Nicholson, had always placed an emphasis on their betting customers, with an eye to the long term health of the sport. Wagering customers were considered a part of the economic engine of racing, were catered to, and always felt home at Keeneland. This, in part, spurred handle increases in a sport suffering massive handle losses. Their strategy was clearly working. Now, it appears that the new management team has gone the way of so many corporate racetracks by only looking at the short term numbers, and listening to stakeholders who yell the loudest.

"I was part of a group from HANA that spent a week visiting Keeneland back in April 2009," recalled HANA President Jeff Platt. "On the day we left Nick Nicholson presented our group with a Keeneland poster which he signed. Above his signature are the words, 'Horseplayers will always be welcome at Keeneland.' Right now I'm not sure if that's true anymore."

The Horseplayers Association of North America is extremely disappointed with the new Keeneland management's decision and will have further announcements after talking with our members."

"So what can we learn about Churchill's takeout hike, if anything?

In 2013 (omitted from the above statement), outside Derby week, at the 16%-19% takeout rates, handle was $322.6M.

In 2014 at the takeout rates Keeneland just hiked to, this handle was down to $248.4M, or off about $74 million.

2015: $252.6M

2016: $260.8M

Since 2013, total handle outside the Derby is down about 20%, or $62 million."

"HANA and Playersboycott.org Announce Horseplayer Boycott of Keeneland

FOR IMMEDIATE RELEASE (October 5, 2017)

HANA and Playersboycott.org have jointly announced that a horseplayer boycott of Keeneland is underway, citing an increase in takeout despite a revenue windfall from Historical Racing machines located at The Red Mile as reasons for the boycott.

"Keeneland decided to hit horseplayers with a takeout increase," HANA President and Playersboycott.org spokesman Jeff Platt said. "Keeneland claims they are going to use money raised by the takeout increase to boost purses. But higher takeout in the name of bigger purses has been tried before and it has failed, big time."

Platt cited past takeout increases as examples:

"For the first 6 months immediately following the takeout increase at Los Alamitos in 2010 on track handle was down 27%.

Horseplayers boycotted Santa Anita and Golden Gate in the early months of 2011 as a result of takeout increases there. Instead of bigger purses the result was purse cuts and layoffs. In October, 2011 the local paper in Arcadia, CA where Santa Anita is located reported Santa Anita was cutting one third of its staff.

Churchill had a takeout increase for their spring 2014 meet. Handle fell by 25% outside of the Derby and Maggi Moss reported on her Twitter account that Churchill had quietly announced a 20% purse cut for their fall 2014 meet.

"None of this would have happened if higher takeout was the answer. Keeneland is doubling down on the same bad idea."

Platt also mentioned that he reached out to Keeneland management beforehand:

"I reached out to Bob Elliston of Keeneland and we had a 90 minute phone call. We discussed the actual outcomes that arose from the above takeout increases. But it became obvious that Keeneland believes players would support a takeout increase because money raised by the takeout increase would be going to bigger purses. I did my best to make it clear that takeout increases lead to the opposite of bigger purses. In the end we agreed to disagree."

Beginning Friday October 6, 2017: Takeout for WIN-PLACE-SHOW wagers at Keeneland will be 17.50%. (An increase of 9.375% vs. last meet's takeout rate of 16.00%.) Takeout for all EXOTIC wagers at Keeneland except the pick5 will be 22.00%. (An increase of 15.79% vs. last meet's takeout rate of 19.00%.)

HANA and Playersboycott.org are asking horseplayers to consider the idea that horseplayers are consumers and that every handle dollar bet at Keeneland is a vote for higher takeout everywhere.

HANA and Playersboycott.org are asking horseplayers to send a clear message by not betting one track, Keeneland, for one month, October 2017. That’s it.

Platt finished with the following message to horseplayers:

"Join us. Together we can convince Keeneland to reverse their decision.""

"DOWN $4.97 Million (-14.61%)


The first three days of the Keeneland Fall 2017 meet are in the books:

Even though we're off to a decent enough start and Sunday saw them down 30%, I fully expect them to use "It had nothing to do with the boycott" and "the weather" and "field size was down" as excuses.

So let's keep to the task at hand and remember what we're boycotting for.

We're boycotting because we're trying to send a clear message.

We're boycotting because other tracks are waiting to see what happens and we want them to think twice before having takeout increases of their own.

Between now and Wednesday, I'm asking each of you to take it upon yourselves to reach out to other horseplayers.

Tell them about the boycott.

Ask them to join us.

Together we can convince Keeneland to reverse their decision.

"

"The question isn't whether or not Keeneland had a takeout increase and underperformed the market by a good -20%.

The question is whether or not anyone is listening."

"Noting that 57% of wagering on its races is either win, place, show or exacta wagering, Keeneland will reduce takeout in those pools. Takeout in the win, place, and show pools will be reduced from 17.5% to 16% and exacta takeout will be reduced from 22% to 19.5%. The 16% rate on win, place, and show matches the previous rate before the fall 2017 increase and the 19.5% exacta rate nearly matches the previous 19% rate.

Takeout is the amount of money removed from each pari-mutuel pool largely used to pay tracks and purses. Essentially it's the price of wagering on horse racing.

Keeneland vice president of racing and sales Bob Elliston said the track expected some pushback on its fall 2017 takeout increase—"nobody likes a price increase"—but the quality of the points made by many customers made an impact. That pushback included a Horseplayers Association of North America boycott of the Keeneland fall meet."