1) the tracks can not lower their takeout significantly due to each state being unwilling to sacrifice its share and lose its cash cow.
2) the tracks have given away their product by selling it too cheaply to out of state/country outlets. until they have the balls to negotiate better and
get a much better %, they will be hurting revenue wise.
3) the demographics of the race track patrons is horrible. the average age
is ridiculously high. as these people die off, they are not being replaced.
4) the tracks feel that their best option is to increase revenue by offering
other forms of gambling rather than make their product more competitive.
5) most tracks have a lot of land built close to major metropolitan areas.
this makes the underlying underutilized asset of the land very valuable.
if the racetrack is not providing a solid cash flow, then the land in many cases will be developed and the race track closed or compromised.
6) illegal offshores would not be likely to commingle their betting dollars with the tracks unless they were given tremedous incentives to do so.
viewing the present legislative environment, this appears highly unlikely.
all this means is that horse racing as a whole in the USA is in a downward
spiral with little or no chance of that changing in the near term.  |