Woodbine Hikes Takeout on Most BC Wagers

Woodbine announced Oct. 29 it will raise the pari-mutuel takeout rates on many Breeders' Cup wagers because of a new standardized revenue model, action that sparked a rebuke from the Horseplayers Association of North America.

Woodbine and its wagering outlets will simulcast the Oct. 30-31 World Championships from Keeneland, which has some of the lowest takeout rates in the United States. But those rates, coupled with the revenue-sharing model, aren't practical for Woodbine, officials said.

Woodbine said the new formula has created serious challenges for the participation of Canadian racing and wagering entities. The Ontario, Canada, racetrack also said there are "significant taxes and mandatory deductions" in Canada that are different than those in the United States.

"The introduction of this increased revenue-sharing model which is also, in 2015, being applied at the racetrack with the lowest takeouts in the industry has led to a very difficult decision," said Sean Pinsonneault, executive vice president and chief operating officer for Woodbine Entertainment Group. "It is at the point where the economics of this arrangement no longer make any sense, and that is not sustainable."

Some of the increases are substantial. At Keeneland, the takeout rate for trifecta, superfecta, and Pick 3 pools is 19%, but for Woodbine the rate will jump eight points to 27%. The takeout for place and show bets will go from 16% to 18%; and for exactas, daily doubles, the Super High 5, Pick 4, and Pick 5 from 19% to 20%.

Only the 16% takeout rate for win bets and 19% rake for the Pick 6 will be untouched.

"Woodbine drew the ire of many this spring when they created a new Pick 5 with 25% takeout, which was well above the industry standard of 15%," HANA president Jeff Platt said in a release. "Now in the fall we see Breeders' Cup takeouts have been massively increased. We at the Horseplayers' Association of North America call on Woodbine and the Canadian Pari-mutuel Agency to address these issues.

"These are policies that are driving more and more horseplayers to other games of skill, further eroding horse racing's betting customer base and hurting the entire industry."

Pinsonneault said most bets "will have an adjusted takeout to try and offset some of the increase in the revenue share," with the goal of "allowing us to also maintain access to our rewards program for HPIbet customers." HIPbet is Woodbine's advance deposit wagering platform.

The industry in North America has trended toward a model that rewards those who wager online; bettors at brick-and-mortar facilities often don't receive the same benefits.

Pinsonneault also said Woodbine made the announcement on the takeout changes to be "transparent with the horseplayer through this process." Platt countered that in Ontario and elsewhere in Canada, 0.5% of each dollar wagered goes to the provincial government and 0.8% to the federal government.

In a statement included in the Woodbine release, Breeders' Cup president and chief executive officer Craig Fravel said Woodbine has been "a terrific partner," but Breeders' Cup can't make exceptions.

"Breeders' Cup understands the Canadian racing entities' taxation model is different, but we feel this standardized revenue-sharing model is for the betterment of the program and in fairness to our domestic partners, we cannot make an exception in our approach," Fravel said.