Crist Blog | February 15, 2008
Some Global Perspective
I tagged the Saturday newspaper column with a little item about betting around the world, gleaned from 2006 worldwide statistics in the newly-released Jockey Club Fact Book. My factlet was that even though the United States ranks first among all nations in the number of Thoroughbred races run each year, and third in total betting handle, when it comes to handle-per-race the U.S. ranks only 11th among the 12 nations that handle at least $1 billion a year in racing bets. (South Africa, which ran 3,883 races in 2006, is probably a 13th, but the Jockey Club was unable to obtain handle figures from that nation.)
The table below reiterates that finding, and also adds purses to the mix. Note that these purse totals do not include owner and breeder premiums, which is why the U.S. purse total of $937 million is lower than the gross purse total of $1.12 billion published elsewhere in the Fact Book:
These results suggest three obvious conclusions:
1. We run way too many races in this country, and less product would probably not mean a decrease in total betting or purses, given the evidence elsewhere.
2. Though American racehorse owners constantly complain about not getting a sufficient return on investment, in comparison to other countries, we do a pretty efficient job of directing betting commissions back to owners through purses. If British purses were our 6 percent of handle, rather than their current 1 percent, the average British purse would be over $130,000, even bigger than Hong Kong's. The difference is our tote system and simulcasting contracts, as opposed to the prevalence of bookmakers in Britain, which return a far smaller slice to the industry.
3. If you add population to the equation, you can get either very depressed about how thin racing's reach is in this country or, if you're the half-full type, see enormous potential for expanding that reach. Here's the list of those same 12 countries ranked by parimutuel handle per resident:
Posted by Steven Crist Feb 15, 2008 7:15:36 PM | Permalink
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Comments
chris says:
Richp, the same exacta concept applies to the US economy. Lower taxes, people spend more, and the economy grows! Tax revenues increase also. Unfortunately, we have politicians who are not smart enough to understand this concept. So what do they do....raise taxes which results in less tax revenue!
Posted by Chris Apr 16, 2008 11:09:59 PM
bob says:
I am laughing out loud watchtower7 at the phrase, 6 weeks a year anually, chuckle chuckle. Thanks for the laugh. Oh by the way Keeneland has two meets a year.
Posted by Bob Feb 19, 2008 12:44:00 PM
gofor_broke says:
My mistake. I meant Friday and Saturday nights. Yonkers was packed too. Every floor was open, and they had windows open at the far turn on ground level.
Great days. But this era is better.
The one change I would like in NYC is to have Gulfstream's full card on channel 73, while the inner track is on 71.
But this system is still much better, having the option of going there, or watching at home.
I prefer home. I didn't have that option in the old days.
Posted by gofor broke Feb 18, 2008 7:07:37 PM
richp says:
A lot of the problem with the racing in the US is the takeout. I believe Australia for instance has only a 5% takeout. I think racing would be a hell of a lot more popular with a takeout like Australia's.
Every time they drop the takout in NY, the handle increases, and the contribution to the state goes up. The increased churn means more tax dollars. This has been proven over and over again.
But every time the decrease in takeout is set to expire,they (legislature) raise the takeout % because they can't afford it. The handle goes down less money for the state. They they try to raise it again, and the handle goes down again. What a bunch of morons.
It's a proven fact that if you redcuce the takeout within reason, the state makes more money. But common sense is something that's in short supply in Albany.
Posted by RichP Feb 18, 2008 6:52:41 PM
mlnj says:
Rossevelt was never "packed" on Sunday night. I cannot even recall Sunday racing there.
Posted by mlnj Feb 18, 2008 4:05:19 PM
watchtower7 says:
If Keeneland had to depend on racing dates to support itself its highly probable they would have more than 6 weeks a year annually.
Lol.
Posted by watchtower7 Feb 18, 2008 3:46:40 PM
dave says:
Steve-did you overlook your neighbours to the north? With thoroughbred tracks in Vancouver, Edmonton, Winnipeg, Fort Erie and Toronto-we should have at least made your list in terms of races run. Our purses would lag but with the Canadian dollar trading above par with the US greenback, you might see more American outfits come to Woodbine this summer.
Posted by Dave Feb 18, 2008 10:35:46 AM
gofor_broke says:
I remember when Roosevelt Raceway was packed on Saturday and Sunday nights.
I enjoyed going there. But those days are over.
It's just easier to watch at home. There's no commute. There's no commitment of a whole afternoon. I'd much rather bet from home.
I can't imagine big crowds anymore, except for Belmont stakes day. And that's not a bad thing.
Posted by gofor broke Feb 17, 2008 7:48:25 PM
c says:
George and Watchtower7,
I won't say anything in particular about Keeneland, but it is pretty clear that the the big money in the industry has shifted from racing to breeding and sales. Horses are supposed to be bred to race, but it sure doesn't seem like that's the case anymore. Now, it really appears that horses are bred to breed. The main reason many high-quality horses don't race beyond 3 years old is because their connections want to strike while the iron is hot in the shed. What do you think Overbrook would rather have? Purses from 10 BC Classic winners, or the zillions Storm Cat has banked in breeding? I'll take the latter.
Posted by C Feb 17, 2008 7:09:11 PM
joe_in_portland_or says:
yes, 1/2 as many races sounds just about right. yes to a national racing tsar and governing body so racing can be designed and coordinated to promote and boost the entire sport, not tracks and states busy protecting their turf while canibalizing each others and hurting racing. Great analogy with the LPGA. Racing needs to become a social event like in Saratoga, Keeneland and Del Mar, not a dirty, decadent, empty and ugly place. Yes racing is bloody in the US and that needs to change: too many drugs, horses in bad shape and races. yes to reducing races and eliminating bad tracks and cheapest claiming races in which most accidents happen. Do we need year around running of $2,000 claimers like in Los Alamitos? Do away with year around racing, year around tracks, racing in freezing weather like in Aqueduct or terribly hot and humid weather like in FL and LA in July and August especially when these bad meets serve to squeeze the last drop out of spent and lame horses in front of nobody.
Posted by joe in portland. OR Feb 17, 2008 4:03:55 PM
george_quinn says:
This comment is for watchtower 7, As soon as you made the comment that keeneland does not care about the racing, your credibility ended. Nothing could be further from the truth. If not for any other reason, if they did not race there would be no sales. Not to mention the job that Nick Nicholson the President of Keeneland does. THINK before you write watchtower 7
george in lexington ky
Posted by george quinn Feb 17, 2008 12:28:59 PM
oaktownabq says:
Some tracks, like Fairmount Park and those in Ohio and Texas, are cutting their dates out of necessity. Of course, these tracks will increase their dates if they get slots -- but that's another topic for another day!
Posted by OaktownABQ Feb 17, 2008 10:39:52 AM
wendy says:
Interesting stats.
I believe the racing industry in the US could take a lesson or two from golf. Yes, golf... more specifically the LPGA tour. They had reached a point of market saturation. The LPGA could not get sponsors,courses, or many fans for their events. The plan, make their product more valuable by shortening their season and becoming more boutique. They changed many things about their product, however, the biggest factor was the "less is more" philosophy. These changes, made over the past 8 yrs or so, has made a dramatic difference and improved the health of the LPGA tour.
Unfortunately, racing does not have a national body overseeing it. Not much will change until they do.
Posted by Wendy Feb 17, 2008 8:31:32 AM
dan_mackenzie says:
The Ireland population stats may be skewed because I believe that racing in Ireland includes the tracks in the North, so the 1.7 Million people in the 6 counties would need to be added to the 4.3 Million in the Republic.
25,000 races per year in the U.S. would be plenty. That’s the equivalent of 7 tracks running all 365 days. Why is there a need for more in this day and age?
Posted by Dan MacKenzie Feb 16, 2008 11:39:32 PM
mlnj says:
Handle per race by country is sorta meaningless. How does it hurt Keeneland or Saratoga to be running opposite some track in Wyoming? The track in Wyoming probably makes some folks out there happy but I'm sure it brings down this not-so-important national average.
Posted by ml/nj Feb 16, 2008 10:09:20 PM
bob says:
What I would like watchtower7 is to go to the races and see crowds not empty aprons and cordoned off grandstands. I enjoy being at the track not sitting in front of a t.v. watching races a thousand miles away. Twelve weeks is just about right DelMar is a great meet and have you ever been to Keeneland what a wonderfull place to race. I've been in and around this game for 40 years have my name on numerous sets of foal papers and I can tell you other sports didn't gain in popularity racing lost. Simulcasting, racinos, cold weather racing, might make dollars and cents but they don't grow the game and you're either growing or going.
Posted by Bob Feb 16, 2008 11:59:55 AM
stu says:
The numbers prove a point which I've stated for the last few years. Racing is watered down! When patrons go to the track they go with a certain amount of money. Simply because there are more races does not mean they will bet more. Less dates equals more money per race, higher quality racing, larger fields, and better value. The state of racing in the U.S. can best be put as, too much of a good thing.
Posted by Stu Feb 16, 2008 10:37:35 AM
watchtower7 says:
Bob, your comments show ignorance of the game. Del Mar is a boutique meet, like Saratoga, designed around summertime visitors. Summer only lasts a few months, I'm sure you dont want only 12 weeks of racing a year.
Keeneland could care less about racing, they print money from their sales.
Racing is a minor blip here because of other sports' popularity displacing it. Hong Kong and Japan are closed markets, they live in a bubble that free markets won't allow.
I would like to see dates decreased and smaller tracks disappear, but until you rewrite the capitalistic model this country is presently based on, good luck.
Posted by watchtower7 Feb 16, 2008 10:05:11 AM
seth says:
Very good work compiling this information. But I think the top 12 is missing some countries (at least in terms of races run). Certainly New Zealand should be there and probably Argentina, Chile, Brazil and Canada (if Canada isn't lumped together with USA). All these coutntries certainly run way more than 644 races a year. Also do the betting figures accurately portray handle in countries dominated by bookmakers? I think such figures may be hard to actually obtain.
I moved to Sydney from NY and it is difficult to describe to American racing fans the difference in culture surrounding the sport between the two countries. Foremost, Australian racetracks are social venues. Even the smallest towns have a racetrack. According to Wikipedia there are 379 racetracks in Australia. I found it interesting that Australia has 38% the number of America's races, but about 6% of America's population. Racetracks are acceptable places to socialize and get dressed up and not the soulless caverns one typicaly finds in America (Aqueduct may come to mind). Racing is considered a real sport in Australia with regular front page coverage and generally recognizable equine and human participants.
With fixed odds bookmakers on every racecourse, an Australian bettor can focus on win betting and does not need to resort to gimmicky superfectas, pick sixes and Magna Fives to overcome America's exorbitant 15-25% takeout. The Australian racetracks make a good proportion of their income on admissions and alcohol sales and not betting pool monopolization anyway.
Finally, with strict medication rules, 95% turf racing and better quality of life for its horses, Australian racing is not nearly as bloody as its American counterpart. A horse being vanned off is a rarity and a fatal breakdown is a semi-annual event and not the weekly event it is in America.
Sorry for the long comment, but I wanted to explain why any American fan of the sport of kings owes themselves a trip to a place like Australia where the sport is done right.
Posted by Seth Feb 16, 2008 9:51:24 AM
bryan says:
Hi Steve,
A question for your Q&A segments. With the Brooklyn now moved back to a mile and a half, is there no better time really to re-name it the Easy Goer. I think this would be a perfect opportunity to finally recognize one of the greats of New York Racing and Racing overall with a stakes race named after him at a distance that he truly excelles at. It is a shame to me the only other time I saw his name ever tagged to a race in NY was when I was a Belmont Stakes program years ago and one of the allowance races on the early part of the card at a mile and a half was named the Easy Goer. Lets finally give this horse his due. Your thoughts??
Posted by Bryan Feb 16, 2008 9:31:32 AM
arazi says:
Although numbers don't lie but at the same time, the plain statistics could give a wrong picture as well.
For example, US is #1 in races run (51668) but ranks #11 in Handle/Race ($286,158). US racing could be categorized based on the quality of races offered by various tracks. In SoCal alone, SA/Hol/Dmr is considered grade A tracks, BM/GG/Fpx B tracks, and other races such as NoCal fair races could fit in the C categorgy.
In the whole US, the category A race tracks could be counted on finger tips and majority of tracks are either B, C, or even D category tracks. These low category tracks ought to consitute the highest percentage of 51668 races ran in the US but, at the same time, they are also responsible for depleting handle/race in the overall stats. In my opinion, US ranks #11 in $$$/race because of the low handle on the low quality racing on these tracks.
Posted by arazi Feb 16, 2008 3:25:33 AM
eddie_arnold says:
everyone needs to read Alan Shuback's column in the drf. He makes excellent points about the state of racing in the USA. To me, racing is a fantastic sport that has been poorly managed and marketed and as a result has been overtaken by almost every other sport in terms of popularity. Racing before 1960 was part of popular culture and is now barely a blip on the radar screen. The racing industry in the US must ask itself why is the sport so popular overseas and yet so stagnant here.
Posted by eddie arnold Feb 15, 2008 10:15:06 PM
jk says:
Hong Kong races twice a week; Saturday/Sunday afternoon (Sha Tin) and Wed. night (Happy Valley). The weekend handle is north of $US 100 mil. Gambling is a big part of the Chinese culture. During the week, OTB's are packed with people playing lotto numbers. You can play the ponies from your cell phone. It is a way of life over there.
Steve, you should head over there and write a book about how to hit the triple trio. You have to correctly pick the top 3 finishers, in any order, in 3 consecutive races. It is easier said than done.
If you think the Spa is horseplayers paradise, give HK a try.
http://www.hkjc.com/english/hrc/hindex.asp
Posted by jk Feb 15, 2008 9:10:08 PM
bob says:
Lotsa luck to seeing less racing anytime soon. The bufoons that run the racetracks in this country, excluding Del Mar and Keeneland props to you, don't understand the concept of limiting product to increase anticapation. Imagine if right after the Super Bowl the NFL started the season again. Bizzare right but thats what happens in the racing world. I could write a book on all thats wrong with horse racing starting with racinos. What genius decided that it was in the LONG TERM interest of racing to encourage alternate forms of gaming. Can't see past the end of their nose. I call it the Bush syndrome. And how in the world can the industry continue to breed to breed what a house of cards. Dot com anyone.
Posted by bob Feb 15, 2008 7:53:54 PM
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About
Steven Crist has been the Publisher and a columnist for Daily Racing Form since 1998. Previously, he covered racing for The New York Times from 1981-1990; was founding editor-in-chief of The Racing Times in 1991-92; and a vice-president of the New York Racing Association from 1994-97. He is the
author of several books including "Betting on Myself" and "Exotic Betting."
