"The latest news put a big smile on the faces of many a Kentucky owner, trainer, breeder and racetrack operator, but before they go into full celebration mode they ought to take a moment to consider what's going on in Ontario and Pennsylvania. In that state and province, racing is in turmoil and horsemen there realize a lot of that has to do with the many mistakes they made when it comes to racetrack casinos."

"Julie Balog, a spokesperson for Keeneland, said that the dissolution was 'solely the result of market conditions in the United States and in no way reflects diminished confidence in the company’s products or expertise.' Balog said that Keeneland has no plans to replace its synthetic surface." (See DRF interview with Keeneland president from October re: partnership.)

"While Jockey Club officials will begin to assess totals submitted by stallion owners this month, the estimated foal crop this year is 27,000 -- a 10 percent drop over the prior year and the lowest number since 1973, says Club spokesman John Cooney. The registered foal crop has steadily decreased since 2007, now approximately one-fifth its size then."

"Handle through two of the three leading national account-wagering platforms in the United States declined in the first quarter of 2011 compared with the first quarter of 2010, according to the platform operators and regulators in Oregon, where the platforms have betting hubs. The decline signals a contraction in the account-wagering market for perhaps the first time. Combined with a slight increase for the third large account-wagering operator the overall 7.9 percent decline is the first significant quarter-to-quarter drop for the leading operators in the account-wagering sector, which has been the only growing component of the national wagering market over the past several years. The decline far exceeded a 1.8 percent contraction in race days during the quarter and was a significant component in an 8.5 percent decline in total wagering on U.S. races for the first three months of the year."

"Pari-mutuel wagering in California declined by $501 million during fiscal year 2009-10, and betting through advance deposit, the only growth area in the state's handle for the past several years, also dipped slightly."

"It's painfully obvious something needs to be done. No one who holds a high position in the industry wants to admit it, but the horseplayers' boycott because of the increased takeout has had an effect. How much, no one knows for sure, but it's hurt business at a time when horse racing didn't need the hit. So who's fault is it? Who's to blame for the sport being in such disarray?"

"Total pari-mutuel handle at New York Racing Association tracks was up 76% in the first month after the shutdown of New York City Off-Track Betting Corp., according to state officials. The increase amounts to about $11.6 million in added facility handle, according to the New York State Racing and Wagering Board."

“Some of the weakest tracks got slot machines,” Waldrop said. “Those tracks probably should have been out of business a long time ago. So we’re taking a well-known, widely distributed product with a great brand and replacing it with a less well-known, less widely distributed product. Horseplayers are not gravitating to those products.”

"Despite the drop in handle, Haines said there is no threat of a purse reduction. 'We’re where we want to be, but that’s something that’s we’re looking at every day,' he said."

"Obviously, we are losing bettors to other forms of gambling. We are in the midst of an unmanaged, market-driven contraction touching most aspects of the racing business."

"The declines underscored the fragile state of racing as the sport continues to struggle with declines in market share and the aftereffects from both the recession and a spectacular bust in the bloodstock market. Wagering and purses have dropped precipitously for the past three years, despite ever-increasing amounts of subsidies from other types of gambling, while race days have only recently begun to contract significantly due to the pressures facing the sport."

"The New York City system wagered $9.6 million on Turfway Park races in 2009, resulting in $169,000 in revenues that were split between Turfway and its horsemen through purses ..."

"The consumers are the ordinary folks who used to watch and play the races -- you know, the ones who’ve been impoverished by the cockamamie economic policies of the last 30 years. The economy of the thoroughbred industry is in the same demand trough as the larger economy and for the same reasons. It’s about unemployment, declining real wages, and diminished expectations. No matter how rich the rich are, it makes no sense to invest in thoroughbred production during a time when the ordinary people who would otherwise comprise effective demand for the product -- as an object of beauty, grace, and wager -- are losing their homes and livelihoods."

"People look small when they try to convince others of something by changing its meaning or misleading them into thinking that something is true when it’s not. Good politics or effective public relations do not constitute lying." Vic Zast on summer handle spin, broadly applicable.

Sortable results for session one. The average price of the 69 yearlings sold was $347,319, up 49% over 2009, the median $250,000, up 25%. The buy-back rate was 26%, down considerably from 2009. A full sister to Octave RNA'd for $390K, a full sister to Proud Spell sold for $250K. The Ghostzapper filly Azeri was carrying was she was bought back at the 2009 Keeneland January sale for $4.4M sold for $450K. Bernardini topped young sires, interest in Hard Spun seemed low.

First punch in another round of tracks versus ADWs? "We have a plethora of tracks running today that are exclusive to TVG," said TVG senior vice president and executive producer Tony Allevato. "NYRA is not an exclusive track."

"Loud alarms now sound at the National Thoroughbred Racing Association. And this definitely is not a drill." (6/23/10) Related: http://www.bloodhorse.com/horse-racing/articles/57281/ntra-punching-bag-or-valued-resource

"Some say the comprehensive action plan was killed, while others believe it was only stalled. Parts of it, such as the televised racing series, are still in the works, but the key component -- an industry-owned end-to-end wagering platform and bet-processing system -- can’t get off the ground." (This is re: working group/plan reported earlier in the year by the Racing Post.) Elements of the NTRA present in Sanan plan. See also: Alex Waldrop's comments on digital initiatives in 6/15/10 NTRA blog post and 9/11/10 TDN interview. (Specifically: "Unlike many other major sports, we easily adapt to the Internet.... We've embraced the internet as openly as any sport that I'm aware of. We may not have the MLB's financial resources to put forth this gargantuan website, and we may not have the cooperation that some of the sports leagues have, but we certainly don't lack for enthusiasm, passion, or for interest when it comes to social media and other advertising via the web.")

Eliminate pari-mutuel clerks and outriders.

"Citing a drop in its famed horse auctions (more than 50 percent in 2009 from 2006) and in betting last spring (down 7.8 percent while attendance was down only 1 percent), Keeneland eliminated two stakes and trimmed others to absorb most of the cuts of what it said in a release was 'a little more than $1 million.' The track also cut stakes by $600,000 during the 2009 spring meet and $275,000 last fall."

"NYRA has placed a big wager on the renowned Saratoga meet this year by adding four days of races, a 10 percent expansion. The 40-day meet remains NYRA’s money-maker, and is now the longest in almost 130 years." Related: <a href="http://www.troyrecord.com/articles/2010/07/02/sports/horseracing/doc4c2d71ca44631121554616.txt">Ready to gamble?</a>

"Altogether, Central Kentucky banks are suing horsemen for at least $54.4 million. By some estimates, that would be equivalent to 5 percent to 10 percent of the equine lending market tied up in troubled debts, a potentially significant stone around the neck of an already struggling horse industry."

"To stay at Santa Anita, Oak Tree was asked to loan $10 million to MID, mostly for yet another new surface, and MID wouldn't have to pay on the principal for two years. Other new wrinkles would have required Oak Tree to pay heavily for capital improvements (such as those rat-infested barns that Stronach kept promising to replace), and sacrifice revenue of approximately $1 million if it hosted the Breeders' Cup again. In other words, Stronach gave Chillingingworth an offer that he couldn't approve."

"The for-sale signs on horse farms are as common as the bluegrass and the limestone fences here, and breeders have grown accustomed to sending horses through the auction ring and feeling fortunate when they fetch half of their asking price -- or anything at all." Hundreds of farms for sale, projected stud value of a Triple Crown winner almost half what it was: The business of horses is in a slump.

"All those yearlings purchased in '08 are now 3-year-olds, and 12 of them were nominated for the 2010 Triple Crown, the most nominees of any single ownership. Yet the $15 million worth of horse flesh has earned Legends less than $1 million in purse money, and has not come close to winning the stable a significant Derby prep race."

"Evans has worked with NBC to market the Derby as more of an entertainment event than a sporting event and the strategy appears to have paid off. Last year 16.3 million people watched the Derby, the highest number of viewers for the event in 20 years."

"A group of leading American breeders and owners have joined major racetrack operators and high-profile industry organisations in a series of closely guarded meetings over the past six months to plan what they hope will combat the difficulties facing US racing." (Same initiative as what's reported in DRF? http://www.drf.com/drfNewsArticle.do?NID=110513&subs=0&arc=1)

Betfair's smart approach to the US market: "The technical team he is building in Silicon Valley is therefore taking a very modular approach to what its building online so that various components of online gambling can be turned on and off depending on the laws in individual states (or even countries). So that might mean poker and horseracing in one state, and sports betting in another."

Halsey Minor still at work on buying bankrupt Magna assets: "I talk to everybody ... and I’m hopeful that a solution can be put together that prevents tracks from being put in harm’s way. If I succeed, then obviously that will be great for the sport. And if I fail, it will not be through a lack of effort." [Mention of tech initiatives as something for later near article end.]

From Sports Business Journal: "NBC and Churchill Downs are repositioning the Kentucky Derby as a 'lifestyle' brand in hopes of drawing higher television ratings for this Saturday’s 135th Run for the Roses.... 'If we can get people to watch the spectacle and stay for the race, it’ll be a success,' said CD CMO Dave Tompkins." [Since many connections seem to consider the Derby a peak "lifestyle" experience, why not viewers at home? Related: Andrew Beyer on CDI (WashPost, 4/27/09). What effect does this big event/lifestyle marketing have on the industry overall?]