Corporate Genius 1: “We need more cash in the till to please the shareholders and increase our bonuses.”
Corporate Genius 2: “I have the perfect idea, let’s look like the good guys and take on those racing dates in September to drop our daily handle below $1.2 million so we can increase takeout rates.”
Corporate Genius 1: “That’s brilliant. We’ll get good press for helping the local racing circuit now and then we’ll fleece our mindless customers next spring.”
Corporate Genius 2: “They won’t even notice because all the talk will be about the Derby and before they know it the meet will be over and revenue will be up a couple million.”
News of the takeout increase spreads like wildfire because unbeknownst to the two corporate geniuses a lot their mindless customers use the internet and social media.
It only takes a few days to orchestrate an official boycott of the takeout increase but the two geniuses ignore the warning and take a wait and see approach.
The end of June rolls around and to their surprise wagering handle is down $49 million and the increase in takeout rates can’t overcome the decline and results in a slight drop in takeout revenue.
Excuses quickly roll out but none can account for the dramatic drop in wagering handle.
Since the corporate geniuses won’t tell the true story and the racing media only tells part of it I’ll give you the whole story.