NEWS
Simulcast conference to address spectrum of business
Posted: Sunday, September 28, 2008 12:34 PM
by Ed DeRosa
Since October 2002, when the Breeders’ Cup pick six betting scandal exposed problems with the pari-mutuel industry’s tote security, the integrity of North America’s wagering pools has been the hot topic at industry confabs such as the International Simulcast Conference.
The topic again is on the agenda for the 16th annual International Simulcast Conference, which begins Monday in St. Petersburg, Florida, but it will at best share top billing with “The Issue of Simulcasting Business Models” panel that headlines Tuesday morning’s activity.
The simulcast marketplace, particularly as signal distribution relates to account-wagering operations, is embroiled in various imbroglios ranging from exclusive agreements to revenue distribution.
The Thoroughbred Horsemen’s Group announced in December the launch of its operations with the intent of increasing the revenue horsemen receive from account-wagering handle.
TrackNet Media, a joint venture of Churchill Downs Inc. and Magna Entertainment Corp., has refused to meet those demands, causing horsemen at many tracks, including Churchill’s flagship facility in Louisville and Calder Race Course near Miami, to revoke permission for Churchill-owned TwinSpires.com to accept wagers without first agreeing to an increased revenue split.
Tuesday’s panel will feature Drew Couto, president of the Thoroughbred Owners of California and vice president of THG, representing the horsemen; an executive from Youbet.com Inc. representing the account-wagering companies; and Chris Scherf, executive vice president of Thoroughbred Racing Associations Inc., representing the racetracks.
“When putting things together, I use the surveys from previous years,” Scherf said. “Obviously, THG wasn’t on anyone’s radar screen last year, but it’s the biggest issue in the simulcast industry right now.”
Another roadblock to account-wagering companies having access to more signals is exclusive agreements. Del Mar Thoroughbred Club blamed a downturn in business this summer in part on its agreement to allow Television Games Network exclusive access to the distribution of its signal. In the spring and summer, TVG was unable to offer wagering on Churchill-owned and TrackNet-distributed signals from Arlington Park and Churchill Downs.
The minefield is not clear once an account-wagering company or racetrack has access to a signal, however. Topics such as keeping the wagering pools secure and marketing the signal to grow business are omnipresent topics among those in the pari-mutuel business. This year’s simulcast conference addresses them with panels such as:
· “Computers and Bookies Don’t Play Well Together” featuring Michael Konik, author of The Smart Money: How the World’s Best Sports Bettors Beat the Bookies Out of Millions;
· “Betting System Issues” featuring J. Curtis Linnell, director of wagering analysis for the Thoroughbred Racing Protective Bureau, and Larry Higgins, executive vice president of the Tampa Bay Horsemen’s Benevolent and Protective Association;
· “Handicapping the Next Five Years in Pari-mutuels” and “Promotion of Simulcast Events;"
· The conference concludes with an update from National Thoroughbred Racing Association executive Alex Waldrop and Keith Chamblin concerning industry-wide integrity issues.
The TRA and Harness Tracks of America jointly conduct the annual simulcast conference in association with the American Greyhound Track Operator’s Association.
Ed DeRosa is news editor of Thoroughbred Times; he will be filing reports from the Simulcast Conference through Wednesday morning.
