More NYRA shops closed

[Saddlecloth]

The New York Racing Association Inc. (NYRA) announced today that it has notified six additional simulcast outlets that it is terminating their simulcast contracts, effective January 31, 2005. Today\'s action by NYRA is a follow-up to a similar announcement by NYRA last week, on January 18th, wherein NYRA announced that it was terminating its simulcast contracts with four outlets connected to the federal government\'s recent indictments involving alleged instances of illegal gambling, money laundering, and horse doping, and undertaking an aggressive review of its simulcast agreements with a number of selected secondary simulcast outlets.

The secondary simulcast outlets receiving termination notices from NYRA today were: Racing and Gaming Services, Inc., of St. Kitts, West Indies; Lakes Region Greyhound Park, of Belmont, New Hampshire; Capital Sports Limited, of Canberra, Australia; Darwin All Sports Ltd., of Darwin, Australia; Coeur d\'Alene Casino, of Worley, Idaho; and the Excelsior Casino located in Aruba.

\"The indictments announced last week by the federal government further reinforced the propriety and urgency of steps that were already being set into motion at NYRA to take a hard look at the entities we are doing business with,\" said Charles Hayward, NYRA\'s President and CEO. \"Working in cooperation with our federal monitor, NYRA has made great strides in improving the transparency of our operations and ensuring that we employ best business practices at all times. We feel that those who wish to do business with us should be held to those same high standards. In other words, unless we know who you are and that your business practices are legal and in the best interests of the sport of horseracing, we are not going to do business with you.\"

The next step for NYRA will be to revise its simulcast contracts to require a new set of disclosures, background information, and information sharing, which will be required of all simulcast outlets wishing to receive and accept wagers on the NYRA signal. Entities that are unwilling or unable to meet these higher standards will not be permitted to resume betting into the NYRA pari-mutuel pools.

\"The message NYRA is delivering today is one we hope the entire racing industry will follow - we must choose integrity over revenue,\" said William Nader, NYRA Senior Vice President. \"NYRA recognizes that many of our most upstanding and loyal fans choose to wager through simulcast outlets to avail themselves of rebate opportunities. While we value the loyalty of these fans to our product, we must take proactive steps to protect the integrity of our pari-mutuel pools until we can know more about the ownership, clientele, and business practices of these simulcast outlets.\"

Over the past several years, interstate simulcast wagering has emerged as a key source of revenue for NYRA, accounting for approximately 12% of NYRA\'s current handle. NYRA estimates that the annualized loss in handle on its races from the simulcast sites it has terminated to date could be as much as $300 million.

[miff]

I doubt the entire 300 million will disappear from the pools. I have noticed the pool sizes at Aqueduct have shrunk since the plug was pulled from the troubled shops.

There are numerous stories swirling around the BIG A concerning OTHER large wagers being made offshore by a substantial trainer and his high rolling owners.I am told that one person involved is scared s--t and talking to the Feds.

Hopefully, something meaningful will happen to protect the players from now on.

[TGJB]

Now, THAT\'S interesting. If I\'m right about who that figures to be, it might lead directly to breaking the drug stuff-- assuming the investigators know (or care) enough to go down that road.

But I\'d be looking under my car before I started it...

[BitPlayer]

TGJB -

Were you surprised that RGS was cut off?

[Chuckles_the_Clown2]

TGJB wrote:

> Now, THAT\'S interesting. If I\'m right about who that figures to
> be, it might lead directly to breaking the drug stuff--


??

CtC

[MInfurna]

I think it is a joke what NYRA is doing and especially what they say, as most of it seems like a campaign to show they have been reformed after their federal indictment. If NYRA thinks the $5 and $10 bettor is concerned about who is getting rebates, they are crazy. Bill Nader states
\"While we value the loyalty of these fans to our product, we must take proactive steps to protect the integrity of our pari-mutuel pools until we can know more about the ownership, clientele, and business practices of these simulcast outlets\". If I was NYRA, I think they should worry about cleaning up in house first and explain to the public why trainers like Dutrow Jr, Lake, Asmussen and others constantly move horses up beyond reason, why horses are being bet when they enter the stretch or far turn and why some jockeys who should not even be allowed to jog horses are able to race in the afternoon.

Regarding the rebate discussion, the people and/or syndicates that bet millions of dollars a week through the rebate shops that were banned by NYRA will no longer bet at NYRA tracks because they do not have a monetary advantage anymore. They will not bet this kind of money unless they are getting rebates back probably around an average of 10% of their total wagers. The people who bet this money are probably not crooked and as far as I know, neither are a majority of the rebate shops. At some point in time, these rebate shops negotiated a takeout rate with NYRA in which both NYRA and the rebate shop could make money. That is how the rebate shops are able to stay in business, by probably only making about .5% on the total handle, with most of the money going to the bettors.

I also noticed the Excelsior Casino in Aruba was banned as a secondary wagering outlet. Having spent alot of time in Aruba over the past 15 years, I would guess the weekly handle at this casino is probably about $10,000/week with Excelsior acting like an OTB, taking 5% out of all winning wagers. I do not think this amount of money bet (especially with a 5% takeout) will draw any unsavory types NYRA hopes to root out.

The bottom line is the people at NYRA do not know how to run a business and take care of their best customers, much like it is in NJ. I could bet on-line at any number of off shore sites and get 35 back on my total wagers. I can bet $15,000 a week at Monmouth Park and get 1%. If you were running a business in which you take a percentage of the money that is bet, would you want to reward a guy who bets $100/day or the guy who bets $1000/day.

Although I hate to say it, at this poit it appears Frank Stronach is the only knowledgable businessman as he has not cut off betting from these rebate shops at either Gulfstream or Santa Anita, where most of the money is bet in the winter.

Just one mans opinion.

[Chuckles_the_Clown2]

MInfurna wrote:

 I could bet on-line at any number of off shore sites and
> get 35 back on my total wagers.

You meant to say you get 3.5% back on your total wagers didn\'t you. I have no idea what you mean by \"35\". Takes aren\'t even 35% and 35 bucks back on 15K weekly churn is not worth bothering over.

[razzle]

TGJB,

\"but I\'d be looking under my car before I started it...\"

Now THAT\'S what I call RESISTANCE!!  

I enjoyed these notes from you and miff and minfurna.  It\'d be great if some names could be attached, as in \"a substantial trainer and his high rolling owners\"?  I don\'t know if this in any way connects with Mall\'s 3 prominent owners?

Go ahead JB, you release it, we\'ll all be behind you---waaaay behind...  

Seriouly, I think minfurna makes much the same point you did about the \"transparency\" of the players at rebate shops. They can\'t be the problem, and Stronach may be the only one to get this right(sure wish he\'d release his signal to TVG!).  The rebaters will probably be back on line soon, but I expect there\'ll be additional scrutiny/reporting such that the guy who will bear the brunt of the changes will be the honest player(hope that\'s not oxymoron). raz

[miff]

RAZZLE,

It would not be fair to release the names on rumor alone although the source is credible.If you are a regular at the BIG A you will hear alot \"stuff\" about it in the clubhouse area.

As JB stated, I hope the Feds go beyond the tax implications and the UVERI group which I feel is \"small time\" on the doping side of things.

[Boscar Obarra]

  My proprietary work long ago indicated that VERY informed money was pillaging the exotic pools in NY for some time.  Maybe someone will spill a few beans and reveal how it was done.

  As of now, I don\'t think the worst of it has been mentioned, and it may never be.