Dispute could cut signals in Vegas books

[clevfan]

Dispute could cut signals in Vegas books

By Steve Andersen
drf.com
Jan 5, 2009

ARCADIA, Calif. - A dispute over the distribution of revenue between Nevada casinos and tracks owned by Churchill Downs and Magna Entertainment threatens to disrupt betting in casino racebooks later this week.

The current contract ends on Wednesday, and a meeting between racing and casino executives is scheduled for Wednesday in Las Vegas in an effort to reach a resolution. The absence of an agreement could lead to a blackout as early as Thursday, Santa Anita president Ron Charles said.

Track officials are seeking a higher percentage of bets to be dedicated to racetracks and horsemen, in the form of purses.

"We are going to sit down and see if we can find a compromise in regards to some increase in the distribution back to the tracks," Charles said of Wednesday's meeting. "The whole purpose of the meeting is to try and reach a compromise."

Charles acknowledged that a blackout of some racetrack signals into Nevada would punish bettors. Currently, Magna-owned tracks Golden Gate Fields, Gulfstream Park, and Santa Anita and Churchill-owned Fair Grounds simulcast into Nevada casinos. A disruption could be particularly difficult on Santa Anita because of its proximity to Las Vegas and the familiarity that many racebook customers have with the racetrack.

"From an overall state of the industry, this is not a good time to be going down," Charles said. "I think it would have an impact. With Nevada suffering through a rough period and horse racing kind of following suit, I'm not sure this is the best time to be alienating our fans."

[stevo]

And things get worse for Vegas. Bad timing for them.

[clevfan]

Jan. 08, 2009
Copyright © Las Vegas Review-Journal

TV signal to remain on through Jan. 25 from horse tracks in California, Florida

By STEVE CARP
LAS VEGAS REVIEW-JOURNAL

It will be business as usual for local horseplayers today as the television signal at racetracks in California and Florida will remain on for the next two-plus weeks.

The Nevada Pari-Mutuel Association and the TrackNet Media Group, which controls the signals for 17 thoroughbred and harness tracks, including Santa Anita Park and Golden Gate Fields in California, Gulfstream Park in Florida, Fair Grounds Race Course in Louisiana and Laurel Park in Maryland, agreed to continue negotiating after the current contract expired Wednesday.

The two sides met for several hours at Encore before agreeing to maintain the status quo through Jan. 25.

"We made some positive dialogue," said John Avello, the director of race and sports at Wynn Las Vegas.

Avello took part in Wednesday's talks. "The negotiations were cordial, and the signal remains on through the 25th," he said.

It also means the NTRA Handicapping Championship from Jan. 23 to 25 at Red Rock will take place as scheduled.

Scott Daruty, TrackNet president and chief executive officer, said the two sides have a better understanding of what each other's needs are after their face-to-face meeting.

"I'm very optimistic we'll get a settlement by the 25th, otherwise we wouldn't have agreed to the extension," Daruty said.

Avello said it's not just money that's at the heart of the issue. TrackNet is seeking a bigger percentage from Nevada to send the signal from its member tracks to the 80 race books throughout the state.

"It's a combination of anything that can happen with a signal," he said. "Money is obviously part of it."

Horse racing revenues in general have been on the decline. The wagering handle overall from thoroughbred tracks fell 7.2 percent in 2008 from the year before, with $13.7 billion wagered compared with $14.7 billion in 2007.

[clevfan]

Jan. 26, 2009
Copyright © Las Vegas Review-Journal

Money remains TrackNet hurdle

State pari-mutuel group still at odds over TV signal

By STEVE CARP
LAS VEGAS REVIEW-JOURNAL

Time is running out for the Nevada Pari-Mutuel Association to reach a deal to keep the television signal for several popular horse tracks from being blacked out in the state's 80 race books.

Negotiations have stalled between the NPMA and TrackNet, which owns the rights to the signal from 17 tracks, including Santa Anita and Golden Gate in California as well as Gulfstream in Florida and the Fair Grounds in Louisiana.

The current contract initially expired Dec. 31, and an extension agreed to by both sides ran out Sunday. But no racing is scheduled until Wednesday, giving them another 48 hours to hammer out a deal.

"Right now, I'm less optimistic than previously," John Avello, the director of race and sports at Wynn Las Vegas who has been involved with the negotiations, said Sunday. "We've offered to pay more for all the tracks, not just the premium ones, and the offer we've made has been very fair.

"It's the same issue. It comes down to money."

Scott Daruty, president and chief executive officer of TrackNet, said Sunday what Nevada thinks is reasonable and what his group thinks is reasonable are two different things.

"We can't seem to come together on that issue," he said. "They just don't want to pay as much as we think the product is worth.

"It's not unreasonable to think we can get a deal done at the last minute. But I don't want to speculate as to whether we will. We're still quite a ways apart, and while the discussions have been pleasant and cordial, we haven't been able to get anywhere."

If a new deal can't be reached by Wednesday, Avello said, the race books are prepared to offer wagering on some of the blacked-out tracks.

"We've got a contingency plan in place," he said. "We'll book it non-pari-mutuel, like in the old days. But it'll probably mean a limited menu with house limits. We also will look to expand our inventory, using other tracks to replace the blacked-out signal."

Avello said Nevada would prefer to use a tiered system, paying more for premium tracks such as Santa Anita and Gulfstream but less for tracks that don't produce much revenue. TrackNet reportedly wants an all-inclusive price for all 17 of its tracks.

It has been the biggest sticking point in negotiations.

"This isn't about Santa Anita," Avello said. "It's about TrackNet and all its tracks. It's about what they're worth, and to us that worth is not the same with each track."

Daruty agrees.

"We're not asking each track to be the same," he said. "What we're saying is the worth of the entire product is more than Nevada is willing to pay for."