By Dan Ross
Golden State Racing launched Saturday its inaugural 26-day Thoroughbred meet at Pleasanton. But punters hoping to wager on its product through two popular ADW platforms are currently shut out–a scenario stemming from a disagreement over the fees that form a key part of a track's purses and revenues.
Currently, neither The Stronach Group's (TSG) ADW platform Xpressbet nor the New York Racing Association's NYRA Bets include Pleasanton in their racing menus.
Similarly, Elite Turf Club players are also unable to play on the Pleasanton product. Owned by TSG and NYRA, Elite Turf Club is one of the primary platforms that Computer Assisted Wagering teams wager through in the U.S.
According to the San Francisco Chronicle, which first reported on the wagering blackout, total handle at Pleasanton Saturday was $807,416. The Chronicle reported that the now shuttered Golden Gate Fields handled $2,703,176 on the corresponding day in 2023.
GSR has hired Churchill Downs International (CDI) to handle their rate negotiations.
In a brief conversation Sunday with Larry Swartzlander, executive director of the California Authority of Racing Fairs (CARF) and Golden State Racing (GSR), he explained that Xpressbet and NYRA proposed rates that he deemed “substandard.”
In a follow-up email exchange with Swartzlander and Heather Haviland, deputy executive director of CARF, they further explained that XpressBet declined to accept the GSR signal at the same rate as the fairs, and seeks to pay “roughly 33% less” for the signal.
“CDI simply offered rates to all outlets that were identical to those paid for Pleasanton, Sacramento, Ferndale and Fresno content; rates which had been approved by the Thoroughbred Owners of California (TOC) in September,” Haviland wrote. “TVG, TwinSpires, Watch&Wager and all wagering outlets, other than those represented by Monarch or NYRA, signed the agreements without hesitation. Monarch declined to represent the fairs/CARF after the conclusion of the Fresno meet.”
The recent seven race-day Fresno meet ended Sept. 29.
An April 4 letter from the Thoroughbred Owners of California (TOC) to Swartzlander shows the fairs this summer charged Xpressbet, NYRA and other platforms a hub fee of 5% for ADW wagers accepted by California residents, and a host fee of no less than 7.5% of gross out-of-state handle wagered by out-of-state account holders.
“We hope that players wanting to wager on Golden State Racing at Pleasanton contact XpressBet,” wrote Haviland.
Scott Daruty is president of Monarch Content Management, the simulcast purchase and sales agent for a group of twelve Thoroughbred racetracks, mainly those under TSG banner.
Daruty said the simulcast sales representative for GSR has refused to sell the signal to Elite Turf Club. “That's not our choice,” he said.
As for the negotiations over Xpressbet, Daruty said they proposed a counter to GSR's original offer on Monday. “We never heard back from them until I received a phone call from Larry Swartzlander earlier today,” Daruty said, Sunday afternoon. “We're working on trying to get a fair rate. But Churchill, their sales representative, never responded to our proposal.”
As to GSR's original offer, “they wanted Xpressbet to pay more for Golden State Racing than it pays for Gulfstream Park or Aqueduct,” said Daruty. “We thought that was unreasonable.”
Gulfstream Park is owned by TSG and NYRA operates Aqueduct.
NYRA issued the following statement Monday: “NYRA has a responsibility to seek out rational simulcast contracts that benefit New York's purse account, horsemen and breeders. The terms offered simply do not reflect the level of racing at Pleasanton. NYRA will continue to negotiate in good faith, and we remain optimistic a compromise is within reach.”
According to the Chronicle, the attendance at Pleasanton Saturday was 1,317, up from 1,003 at Golden Gate Fields last year.
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