NEWS
Santanna argues for reduced takeout
Posted: Tuesday, February 26, 2008 12:52 PM
by Tom De Martini
Racing’s economic model is broken and must be overhauled in order to keep owners, trainers, and breeders in the industry, National Horsemen’s Benevolent and Protective Association Chairman Joe Santanna said Monday at the Pennsylvania Gaming Congress’s Mid-Atlantic Racing Forum in Harrisburg.
Santanna suggested that lowering takeout would help close the $800-million owners lose annually.
“If takeout is 21%, one-third of that amount should be put back into purses, because [purses are] what drive the industry,” said Santanna, who also serves as president of the Pennsylvania HBPA.
Santanna said off-track wagering facilities and Internet wagering platforms also need to lower their takeout percentages to assist purse levels.
“[Alternative] gaming helps, but it’s not going to generate $800-million,” he said.
Santanna urged racing industry participants in the state to become more active in racing economic stewardship.
Synthetic surfaces, which Santanna said raises handle by adding an average of horse per race to field sizes is necessary, but the cost factor to track operators remains an impediment.
“We continue to look at every aspect of our business model and take ownership of it as much as track operators do, to make racing pay for itself,” Santanna said.
Vic Harrison, general manager of Vernon Downs, a Standardbred racino in New York, also urged change in many financial aspects of the industry.
“This industry is dying. It has to change or it will die,” Harrison said. “If you love this industry, you’ll help enact change.”
Among Harrison’s ideas are improving past performance information, minimizing labor costs by eliminating tellers and increasing handle via jackpot wagers, dime superfectas, and unique events such as Calder Race Course’s Extreme Days.
“You can increase racing handle by engaging and entertaining customers,” Harrison said.
Tom De Martini is a New Jersey-based Thoroughbred Times correspondent
