On Tuesday, January 18, the Ontario Racing Commission issued an update on the phasing in of its 2011 Ontario Racing Program
.
The contents of the release appear below in its entirety.
The start of the new year in 2011 brings many challenges and opportunities, as the new Ontario Horse Racing Program moves into the implementation phase.
The Ontario Racing Program is a provincial approach to horse racing. It includes regional circuits, and factors in local considerations. The framework is structured to comprise ‘racing regions’ that are made up of racetracks serving local, regional patrons and horse people.
The program also takes into account markets beyond specific regions. For example, as a result of streaming video and uplinking of signals, an action taken in Windsor can have a direct effect on an activity in Ottawa. The framework offers a truly provincial, inter-dependent system.
Why Change?
Why did we move away from the single-track focus of previous years?
More than a year ago, the standardbred racing community in Ontario recognized that the status quo was no longer an option, and that the ‘tried and true ways’ of racing needed to adapt, to become – among other things – a more customer-focused model.
Consideration of racing models on a single track basis does not take into account participant mobility across tracks and today’s customer who can access most Ontario racing product with a keystroke. Through synchronization, a province-wide racing program with an established hierarchy of racing can increase racing opportunities and lay the groundwork for creating an ‘Ontario’ brand of racing to be sold on the domestic and international markets.
What’s Happening Elsewhere?
A recent article in Hoof Beats News (December 22, 2010 'Short Supply') describes what unintended consequences can occur when an injection of money is generated through means that are not directly related to horse racing.
In this U.S. example, the premier track is experiencing difficulties competing with surrounding tracks with higher purse levels. While that region has been experiencing an increase in the number of quality races, the contention is that there are fewer horses being bred to fill these races in the future.
Essentially with fewer horses being bred, there will be fewer quality horses to fill fields at each of these tracks, negatively impacting the quality of horse racing being offered to the betting customers.
Could Such A Thing Happen In Ontario?
Ontario has identified similar phenomena and, to stem the possibility of a similar tide breaking here, is proactively implementing a framework to address necessary adjustments.
Some members of the racing community have clearly expressed their difficulty with the changes, wanting things to stay the same, or wanting to go back in time to the way things used to be.
For example, some believe that any reduction in days is unacceptable.
Taking that position is any person’s prerogative and our system of due process and appeal allows for a formal objection to made. In the same way – and within the board-approved framework – the program takes the responsible action of implementing a race schedule for 2011 using a collaborative process.
As the 2011 program includes a reduction in days, is this a positive step? Yes, if it succeeds in stabilizing the industry, creating more opportunities in racing and renewing customer interest in the product, with the opportunity to expand again as factors indicate. Note the comments from Jamie Martin and Ted Clarke.
The Program Will Be Agile And Responsive
The program recognizes that some people in racing will need ample time to adjust and take advantage of these efforts to improve racing. As advised in previous notices, 2011 will be a transition year for horse racing in Ontario.
An implementation team has been formed to assist the industry in the introduction and monitoring of the Ontario Racing Program components – turning the concepts of the framework into action.
Overseen by Industry Development and Support Director Wendy Hoogeveen, the members of the ORC Implementation Team are Bill Fines, Rob McKay, Mike Wilson, Kerry Wright, and Ryan Dupuis.
To meet these challenges, a key responsibility of the team will be to drive the implementation of the program and monitor the results – on a daily basis – identifying what is working and what needs adjustments. Making use of technical experts from the racing community, the team is responsible for establishing performance measures and continuing industry collaboration. Everyone involved recognizes that the program needs to be flexible enough to change and accommodate regional issues if components are not having the desired result.
Race Secretaries Are Key To Implementation
A meeting with race secretaries was held on January 6 to continue the task of defining the technical details – such as race conditions, Canadian preference, as well as related purse discussions. It was a very productive meeting and recognition and appreciation goes out to this group for their hard work and continued efforts. The Ontario Racing Program implementation team will continue to work very closely with the race secretaries.
What’s next?
It is expected that within the next seven to 10 days, several of the technical details that are currently in development phase will be ready to be circulated for input. This information will also be released in the next update.
Horse racing makes a significant contribution to the economy and well being of rural/agricultural Ontario.
Collaboration, open communication and decisive, bold thinking on the part of all members of the racing community will move standardbred horse racing forward.
(ORC)
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So the ORC wants racing to
So the ORC wants racing to become a more customer-focused model. Friday night at Dresden, for the umpteenth time, I cashed a ticket and was given a voucher for $900 and was told by the seller that I would have to see the manager or drive to Chatham to get the voucher cashed. Today, Monday, I am driving to Chatham to get my money. I have called both the ORC and CPMA about this before, was promised that they would look into it and give me a reply, and have heard nothing from either one. Paying out vouchers instead of cash is Windsor raceway POLICY, it boggles my mind that the ORC allows such a thing. They don't seem to understand that it is the customer's money, what right does Windsor have to hold it and refuse payment? I bet with cash, I expect to be paid with cash. Until the customer is put at the top of horse racing's list, racing has zero chance to even survive, let alone grow. As far as I am concerned, the above ORC release was written more for government officials to read so that they would get the perception that the ORC was working on the improvement of horse racing. Everyone involved in the industry, especially customer/bettors, realize that it will not attract one single new customer.
Yes, Lowering takeout is a
Yes, Lowering takeout is a part of the change we need to implement. Tim Bates has an excellent idea(Read it!). This would just be a small part of the plan for change. Will lowering takeout entice the current bettor at the track to spend more, does he/she have more?, will this attract people from the slot parlour-remember ten years ago people were going to "try the slots" then come over and "try the horses" - is this happening?, The product and the vehicle to promote it has to change as many have said here. Our task is to develop this plan of change and implement it throughout the province. Simple things, that we are overlooking - Like walking into the front doors of a "harness track" and seeing escalators, a directional signs reading "slots" and a life size plastic riding horse with a cooler on it that directs you to the "BINGO" hall. The other day I overheard a younger couple conversing as they stopped briefly just inside the doors - "isn't there horse racing here?
Surprise, surprise, many
Surprise, surprise, many horsemen want the status quo.Ontario racing is not strong because of their product, it is fortified to a ridiculous extent by slot money.
I am sick and tired of horsemen blaming track management for all their problems, and expecting the Commissions to take care of their shortcomings. It's about time they started policing themselves.Track managements and racing commissions setting dates and making rules that they do not sufficiently enforce have nothing to do with the majority of the reason soft and hardened harness racing supporters are bailing. The biggest issue is INTEGRITY.Performance enhancing chemicals used by trainers,collusion and "stiffing" by drivers (when was the last time you saw a driver's objection at WEG?), insiders picking their spots to win in order to cash in big, general abuse of the racehorse, and lack of respect for the general betting public by excessive takeouts designed to pay purses. Yes, these things DO happen,and it's time you realized that THIS IS the general perception of the public, be it right or wrong.
Right now horseracing is not dependant on the customer for it's survival. We need to change that. Here's a radical idea;take all the slot money and seed the betting pools instead of giving it to the horsemen, and reduce the takeout to 10% everywhere in Ontario. Also reduce race dates dramatically, so that even at the smallest track will have significant handles. Instantly, there will be a renaissance in harness racing, and the slot money can still trickle down to the purses. Just watch the public come back! All they want is a fighting chance.
I agree with Mr. Henriksen,
I agree with Mr. Henriksen, that this approach is unlikely to change anything. It seems like most people want to change the sport, rather than recognizing that harness racing is still the excellent sport it was years ago, it simply isn't marketed the way that most other sports are today.
@ Norm said "When you
@ Norm said "When you consider the capital investment in a track, a race horse & equipment, plus the maintenance of both you can appreciate that a 25% takeout is necessary."
How does Steve Wynn do it? He spent $3B on a casino, and has scores of employees whom he pays multi-millions a year. He charges 5% on slots, nickel lines on baseball, and as low as 0.43% on video poker. He is not running a charity - he knows that if he ups the slot take to 7% from 5%, he loses money. It's about profit levels, just like any other business. If the takeout rate was directly correlated to costs and profit as you note in your comment, then we should raise it to 99% from 25% then as things get more expensive, because if 25% is good, 99% should be a whole lot better.
Dean
I have a comment about the
I have a comment about the takeout that has been refered to in these comments.
Bettors have been asking for a lower take out for ever. Here is an idea for the take out reduction, base it on the handle.
lets say for instance if a handle on a card is less than $10000, there should be zero take out.
From $10000 to $100000, increase the take out to 10%, from $100000 to one million, go to 20%, and over one million, let the track take 30% or less if they see fit.
These take outs all could be maximums with the trck able to reduce it were they see fit.
Lets face it the take out on the $7000 bet at Kawartha last Saturday does not put a dent in the operating cost of the card. I only mention this card as I raced there on Saturday.
This would be seen as win-win to the bettor.
This is just one idea to structure the total take out, it could be played with on a per race basis between the various types of wager.
Mr.Brunet,
Mr.Brunet,
Thank you for your post, i have been waiting for months for someone to point out to me the extra cost associated with racing. Now lets remember that the off shore sports books have to cover there expenses by what they make, they do not have the slot revenue from 5000 slot machines to fall back on like the race industry does. Off shore poker books do not have 5000 slot machines to bump up there bottom line either. They make it on there own.
To what forms of gambling am i referring to that has such a low takeout. Single game sports betting available 7 days a week right from your own computer. Poker also available 7 days a week right from your own computer or from live games all over the place.
This is what people like you fail to see, years ago if you wanted this you had to go to vegas so the race game got away with excessive takeout, well they are not going to get away with it anymore and that's a fact. All kinds of people like me have walked away from the races to other forms of gambling with a fair house take and generation next has soundly rejected the race game with there excessive take outs and will never accept them.
We all know that purses are driven from slot revenue not wager. So the race game has a choice to bring the take out in line with other forms of gambling, lets say a maximum of 10% and try and compete for the customers or watch the wager stay in a state of decline ubtil it all but disappears and finally one day the government clues in and say how do we continue to support the race game when the public soundly rejects it. Should happen in about 20 years or less. So they better keep the wager respectable or else they will be cut off funding.
So attention Mr.Brunet it is this type of backward thinking throughout the industry that will someday kill it. For anyone out there who thinks the race game can charge 2 to 5 times more then there competitors and get away with it in this day and age needs to re-think there position. Go to the racetrack and see the average age of the customer, generation next has rejected the race game for games that are much fairer and beatable. As i said when it comes to this latest plan, it is the same old, same old, it will do nothing meaningful to turn the wager around and that's the bottom line.
In reply to Mr.Brunet, by John Carter
John C I said "One needs to
John C
I said "One needs to know that the overhead in horse racing is not the same as an NFL game or any other pro. game , a slot machine or any other form of legal gambling in Ontario"
The key words here are "LEGAL IN ONTARIO."
Off shore betting is very much against the law, hard to enforce however but against the law and none of them are in Ontario. You can't fund an offshore account with a credit card because of the fraud that went on with these offshore books that burnt the banks and if you happen to get lucky and win money see how long it takes to get your money if you ever do. It seems to me ludicris to bet money with a very good chance of never seeing your money again. I know with the ponies I get paid right after the race. In regards to overhead, a computer, some casino software, a domain and P.O. box and you are off to the races, excuse the pun.
RE: Dean Towers
I agreed with you I said "Many casinos were built in Vegas on table games and slots but NONE on proceeds from the horse book"
Steve Wynn does not have or does he ever intend on having a racetrack at his casino and why not ? because he can't make money on 5 , 10 or 15 % takeout...
the orc needs to go after
the orc needs to go after the chemists that has ruin the racing . We need some fresh new faces in the orc not the same old ones to implement a program. The customer needs to know thats its a level playing field. Once the public hears that something is being done then we might be able to coax them back
This is not going to change
This is not going to change anything! You have to change the whole product and get it out to the people.
I believe the ORC is finally
I believe the ORC is finally doing something positive. This should help stabilize purses and in some cases improve them. In the short term, lesser racing dates is not good for my business, but I believe it is a start to strengthen the industry.
Lets not complain about what hasnt been done yet, as John Carter has done(even though he has a valid point). Lets support this new initiative...we definitely need some changes.
All these wonderful things
All these wonderful things they want to do to improve things yet i don't see a single thing that is being done for the customer/gambler. Not a single mention of a major reduction in track takeout so they are in line with other forms of gambling, same old, same old, much to do about nothing. To expect real change that may make a difference i guess would be to much to ask.
In reply to All these wonderful things by John Carter
No doubt this program can
No doubt this program can help harness racing in Ontario and should be co-ordinated by the Ontario Racing Commission.
Ontario is the strong arm in this industry and should be leading the way.
One needs to know that the overhead in horse racing is not the same as an NFL game or any other pro. game , a slot machine or any other form of legal gambling in Ontario. When you consider the capital investment in a track, a race horse & equipment, plus the maintenance of both you can appreciate that a 25% takeout is necessary.
Many casinos were built in Vegas on table games and slots but NONE on proceeds from the horse book.
ATT: John Carter.
"reduction in track takeout so they are in line with other forms of gambling,"
What other forms of legal gambling are you referring to? Pro-line when a 3 team parlay of odds of 27-1 pays 10-1 or how much do you think the takeout is in the slots? Lotteries much higher then 25%. Bingo? Maybe but not much entertainment vulue however. I'll take my chances on the ponies where a payoff can be several x higher then my bet.