Thank you, Randy Hartley. After getting beaten over the head by those who preach that racing is a dying sport and we’d all better find another way to make a living, it was refreshing to read Hartley’s comment in the TDN coverage of the Keeneland April sale. “People love horse racing, and they are always going to buy the good racehorses.” Yes, they do. Yes, they are.Not that I’m an expert, but the Thoroughbred market seems to mirror that of real estate. Things get good, investors and buyers get caught up in a wave of enthusiasm that causes them to extend beyond their means. More and more helium gets pumped into the balloon until it gets just a little too high and then, pop, and back down to earth we all come. Real estate always rebounds, and, guess what? So does racing. In both industries, the best players regroup and adapt and weather the storm.
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| Mike Repole |
Handle on horse racing is down, for sure, but in this economy, you have to expect that. Gambling dollars come from discretionary income, and there just isn’t as much cash to toss around these days. But we don’t have it as bad as some...just ask the Atlantic City casinos.
Some tracks are suffering, but others are thriving. Business at Oaklawn Park and Tampa Bay Downs is booming. Fair Grounds and Laurel Park both announced purse raises this year, as did Remington Park and even Hastings Park. Morris Bailey is looking to make a five-year commitment to Monmouth Park, and they could just about be minting money at NYRA when the casino opens its doors.
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| Oaklawn Park |
So thank you, Randy, for that reminder.
1 comment:
Ms Belifore wrote:
Gambling dollars come from discretionary income, and there just isn’t as much cash to toss around these days.
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For a vast majority it is gambling and having a good time at the track.
But horse racing is not just "gambling" but a game of skill. Undeniably racetracks are staying in business through the Pareto Principle. This rule stipulates 20% of the clientele wagers roughly 80% of the total handle on any given day.
And those skillful bettors are aging, have passed on, or move to other games of betting skills. That is the area which must be addressed as it takes many years for newcomers to become as proficient in handicapping and wagering.
Racetracks are not going to keep themselves in business if they plan to hawk $4 hot dogs and $8 bottles of Yuenglings (hmm... sounds like Monmouth Park). That's gouging and leaves a sour taste among those casual race-goers. So many of them will not return to be fleeced again.
With the U.S. conducting roughly 45,000 (yes, forty-five thousand) thoroughbred races over the course of the year. I am most certainly welcoming this downsizing period. We'll all be better off after the dust settles - every facet of the industry. Let us brace ourselves for only a few more years.
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