Law Helps Offset Insurance Costs
The takeout rate on exotic wagers on California horse races increased by one-half of 1% Wednesday, going from 20.18% to 20.68%, as a result of a bill signed last week by Gov. Arnold Schwarzenegger. The takeout rate on win, place and show bets remains at 15.43%.
The additional money generated by AB 701 will be used to help offset the cost of workers’ compensation insurance paid by horsemen, theoretically making it more attractive to race in California and, thus, improving the product on the track.
Even with the increase, the exotic takeout rate in California remains lower than in almost every other state. Only Kentucky, where the takeout rate on all forms of wagering other than win, place and show betting is 19%, has a lower rate. The takeout rate on trifectas, superfecta, pick threes, pick fours and pick sixes in New York is 25%, although the rate for the pick six on non-carry-over days is 15%.
Buoyed by a record two-day pick-six carry-over of $708,235, $3,453,248 was wagered on Wednesday’s pick six, meaning $714,132 was withheld. Before the new rate went in effect, the takeout on the same amount of money bet would have been $696,835, meaning $17,266 went toward the cost of workers’ comp insurance instead of into the pockets of bettors.
“I think we’re going to see a positive impact in both the short and long term,” said Rick Baedeker, president of Hollywood Park. “This is good stuff. I’m glad we got it done. It’s the first time in a while we have reason to be optimistic.”
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On a day when Jewel Of The Year was the only winning favorite in the pick six, there were two winning tickets and each was worth a Hollywood Park record $1,312,808.60. The previous best was when one ticket was worth $928,127.40 on July 21, 2002.
One of the winning tickets was purchased at Calder Race Course in Florida, while the other was through the Ohio wagering hub.
Jewel Of The Year paid $5 in beating Spring Festival and seven others, but no other winner paid less than double digits.
The biggest surprise came from Sigint, who won the seventh, a $58,000 allowance at 1 1/16 miles on the turf, at 11-1 with jockey Jon Court. He also went wire to wire with 5-1 shot Western Blondy in the fourth.
The other pick-six winners were 6-1 shot Stop The Talking in the third, Dawn’s Angel, a 5-1 shot, in the fifth and 9-1 outsider Chickster in the eighth.
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Two veteran stakes winners trained by Richard Mandella have been retired, both because of ankle injuries. Redattore, whose stakes victories included the 2003 Shoemaker Breeders’ Cup Mile, won the San Gabriel Handicap at Santa Anita in his final start on Dec. 28. Spring Star, a 5-year-old mare, last won the Wilshire Handicap on April 25.