Global Symposium Explores Racing's Identity

Theannual Global Symposium on Racing and Gaming kicked off Nov. 6 in Tucson, Az., with a spirited discussion of how the crucial components of gambling and providing entertainment value shape the sport of Thoroughbred horse racing.

The audience of some 200 industry participants as well as students in the University of Arizona Racetrack Industry Program heard vastly different assessments of the state of the sport from participants in the opening panel entitled, “Racing’s Identity Crisis: Who and What Are We?” Moderator Steve Byk, the radio talk show host of “At the Races,” took the optimistic side, stating that racetrack managers were making efforts to bring new fans out to their venues and to the sport in general.

“I think our fan base is people who want to apply their brains to the gambling experience,” Byk said. “Racing knows what it is, and it’s up to us to spread the message.”

Michael Tanner, executive vice president and CEO of the United States Trotting Association, documented the difficulties that continue to plague racing. Tanner, who has also worked on the Thoroughbred side, noted, “It’s very difficult to compete as a wagering option because of our takeout rate, which doesn’t necessarily come from greed, but because of a lack of revenue at many racetracks. Bettors have dropped out as a result, and what we have to look at is attracting not only young people, but older people with disposable income. Drive people toward the ownership side.”

Bill Nader, a former executive with both the New York Racing Association and, more recently, with the Hong Kong Jockey Club, said his assignment in Hong Kong was to try and move the Happy Valley racetrack more toward providing an entertainment option for customers.

“We wanted to get people to the track and provide them with a soft introduction to racing,” Nader noted. “The goal was to develop a greater connection to racing as a sport.”

The customer experience, Nader said, was the big takeaway as to how to translate Hong Kong’s success to other venues.

“Customers in this sport are naturally inclusive because of the gambling component,” he said. “And they want to be heard. We have to develop customer segmentation—knowing who our customers are. Owners are big customers, and we need to know what they want for their experience when they’re at the races. We have to concentrate on basic customer comfort, on information delivery, and on food and beverage.”

Peter Rotondo, vice president of media and entertainment for Breeders’ Cup, said the emphasis in recent years was expanding the World Championships from simply being a racing product to “putting on a show for both the TV and ontrack audiences.” He noted the celebrity ambassadors that now participate in Breeders’ Cup events as well as the introduction and rapid expansion of the Breeders’ Cup Betting Challenge, which this year had nearly 400 participants buying in at $10,000 each.

“The ontrack players in the Betting Challenge this year accounted for 12% of the overall Breeders’ Cup handle,” he said, “and that was from about 250 players. The sky is the limit now.”

Amy Zimmerman, vice president and director of broadcasting for The Stronach Group, also stressed the need to appeal to both gamblers and people who grew up loving horses.

“We must help people find the sport,” Zimmerman said. “In fact, the mission statement from NBC is to make sure we tell these stories of the horses and people in the sport.

“I don’t believe this sport is dying. The more we talk about it dying, the more we’re killing it. Our customers are as passionate as fans of any other sport.”

Nader agreed, citing the example of Jack Nicklaus saying how he started crying when he watched Secretariat win the Triple Crown. “This sport has the ability to touch people,” Nader said.

In a separate session, MGM Resorts vice president of player development Tom Tuchschmidt, an avid racing fan, drew parallels to how racing could benefit from the player tracking systems employed by the casino industry. He explained that casinos began embracing relationships with their best customers in the 1950s and 1960s, making sure they had phone numbers, knew about their families, and called to wish them happy birthdays.

“Horse racing does a good job showcasing the excitement of the product,” said Tuchschmidt. “Its shortcoming is maintaining relationships with its players based on levels of play. The player cards that do exist in racing are only one-tiered. You have to make them multi-tiered based on play.

“You need hosts at the tracks that can coordinate with the dining rooms, coordinate with the mutuel department to make the experience the best it can be. Do meet and greets with jockeys. Invite big players out to charity events. Make them feel important. Reaching out makes all the difference. It builds loyalty. And you ensure a new generation will stick with you because it enjoys receiving the star treatment.”

He suggested tracks should reach out to potential customers through businesses like Equibase, sending out direct mail offers to people who use that and similar services.