Ellis Park, Horsemen Strike Deal on ADW

FROM: Blood Horse

BY: Tom LaMarra

Ellis Park and the Kentucky Horsemen’s Benevolent and Protective Association struck a deal July 5 that will allow the western Kentucky racetrack to open July 11. The horsemen’s group said the agreement is in keeping with its calls for a greater share of revenue from advance deposit wagering.

Details of the deal weren’t immediately available, but the Kentucky HBPA said Ellis Park will pay an amount equal to 6% of ADW handle to purses or one-third, whichever is greater. The Thoroughbred Horsemen’s Group, a national coalition, has used a similar model—one-third of ADW revenue to purses, the racetrack, and the account wagering provider, respectively—in its negotiations at other tracks in the United States.

The THG formula is based on an average blended pari-mutuel takeout rate of 21%, which would mean a 7%-7%-7% split. The blended takeout rate in Kentucky is just under 20%.

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