Quote:
Originally Posted by NY Racing Fan
Jeff can respond to this better than I can but revenue from handle is a loaded topic. Even if your revenue increases with a decrease in handle because of the takeout increase, it still paints a bad picture of an organization if you are showing declining profit margins from revenue.
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"Revenue from handle" is often used when handle goes down, when takeout goes up (mainly from insiders), but yes, it is a really poor way to look at things. It's short term.
Hong Kong - a near monopoly for racing in their jurisdiction - could raise billions in revenue tomorrow by increasing takeout, but they won't. Australia's juice is 10.41% blended. I'm sure they could raise revenue tomorrow by going to 15%. They don't either.
They don't because they know that the short term revenue bump will not continue as their players get ground down over time. The same thing happens here - and has happened for generations. Then they look up one day and see both handle and revenue down, and almost inexplicably wonder what happened. Then, they do the exact same thing over again.
