The Thoroughbred Idea Foundation has issued its latest white paper on three issues that hold back the sport’s ability to become self sustaining. It also outlines some recommendations
In this fairly brief paper, we identify three major systemic issues that are stunting racing’s evolution and offer a call to action to develop American racing’s sustainable future. Our later recommendations are broad, and unquestionably, difficult to execute. The industry’s long-term record on adopting transformational change is practically non-existent.
Issue 1: State racing commissions, established as the regulatory bodies for the sport, are replete with political appointees, most of whom do not value standardized rules across states or the need to improve the transparency and competitiveness of the sport.
Issue 2: Most American racetracks are owned by entities which also operate casinos or additional gaming on-site, and are currently required to share revenue with racing.
“In Pennsylvania, 88% of racing prize money earned in 2018 came from a revenue share of slot machines. In Ohio, where all seven of the state’s tracks are owned by major gaming corporations, average prize money per thoroughbred race increased 201% from an inflation-adjusted $6,831 in 2010 to $20,612 in 2018.
Issue 3: Racing’s own self-created organizations have failed to adequately address these many concerns and often downplay the role of wagering despite that being the most sustainable source of revenue in the future.
“Wagering on racing has declined an astounding 50%, adjusted for inflation, since 2003 and yet little has been done to arrest this decline. The reasoning for such inaction, however, has been obvious – prize money remains at record levels thanks to sources beyond racing.”
High takeout, high data costs, antiquated technology and a general disdain for wagering customers must be eliminated. If horse owners want to keep the sport going, it will need to present horseplayers and modern bettors with a respectable product.”
Read the full report –
https://racingthinktank.com/reports/tif-reports-american-racings-sustainable-future
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