Bill Oppenheim – July 30
EQUILOTTERY FOR DUMMIES
When Brad Cummings announced Equilottery at the beginning of the month, we all knew we were for it, but a lot of us who don’t pay much attention to lotteries didn’t really ‘get it’. So I sat down with Brad when I was in Lexington a couple of weeks ago and asked him to explain it for those of us who don’t yet understand it–Equilottery for Dummies.
Brad explained a couple of the key concepts. One thing that’s important to understand is that lotteries in North America, like other forms of gambling, are essentially organized and administered on a state-by-state or (in Canada) a provincial basis. Though Equilottery is one ‘game’, it would take a different shape in each state or province–which must allow both lotteries and pari-mutuel betting. We’ll return to this point in a minute.
Second thing to understand–which I confess I didn’t realize–is that states don’t make up their own ‘games’. There are gaming companies which invent the games and sell them to the various states. Brad cited the example of Kentucky: a company called GTECH provides all the games for the Kentucky lottery, and their payment is a small percentage of every lottery ticket sold. That’s how the gaming companies generate revenues.
Equilottery is a lottery game, provided by the Equilottery LLC company. Brad and team persuade a state or provincial lottery to buy the game, each state runs its own lottery and the payoffs are tied to the respective pari-mutuel pools.
Here’s how it works. A lottery takeout is typically 40%. Equilottery is a $2 game. For each $2 bet, the respective state or province keeps $1. Of that dollar, 80 cents is 40% of the $2 bet, so that is the lottery (state) take-out. The other 20 cents collected by the respective states goes into a separate, supplemental ‘bonus’ pool which each state pays out separately. The second $1 is bet straight into the racetrack’s pari-mutuel pool, and just becomes part of that pool. Say, for example, the Equilottery bet is a trifecta, and the player selects 3-5-8 in that order. The bettor’s second dollar is just part of the pari-mutuel pool, so the player simply has a $1 trifecta 3-5-8, and if the bettor wins, he or she gets the $1 trifecta payoff back, plus a share of the 20-cent supplemental pool which will be unique to each state.
Brad and team sell the game to the respective states, with the idea that in each state or province Equilottery is played once each day. Part of the package is that the Equilottery team then consults with the state on the best race to use each day. On most days each state would play the game on a local race with a big field, timed between 4:00 p.m. and 6:00 p.m., with a lottery cut-off time of say 4:00 p.m. On some days, particularly weekends, states might choose to have that day’s Equilottery be on a race of regional or national significance to build larger pools.
Equilottery is designed to appeal to lottery players, who get a new and maybe interesting game, as well as to several horse industry elements. Racetracks benefit from increases in the pools on those Equilottery races. Brad points out that seasoned horseplayers will feel they have an advantage in the lottery races–as a certain percentage of the pool will consist of an even higher percentage of random bets than usual–and the industry as a whole will benefit from increased exposure.
The development of Equilottery can be traced to Brad’s exposure to horse racing, which was absolutely zero until six years ago, in 2008. Now 36, Brad is a native of the Chicago suburbs, where he never knew about Arlington Park or Hawthorne, and attended university as an aspiring actor at Illinois State in Normal, Illinois (following in the footsteps of John Malkovich, he explains). He moved to Louisville to work for Stage One Theatre, and met his wife Nikki when both were cast members in a charity production of the Rocky Horror Picture Show. But Brad realized that, in his opinion, he was not likely to be the next John Malkovich. He abandoned acting for a short career running statewide political campaigns in Kentucky, then signed up to handle the business side of The Paulick Report in 2008. “I had to look up what a furlong was,” Brad explained. “I literally knew nothing”. Equilottery is designed to help other people who would also have to look that up to create a connection to the horse business.
Incidentally, Brad did have a breakthrough moment as a performer after all, when he sang the National Anthem on the Friday of the 2012 Breeders’ Cup at Santa Anita. Engaging though he is, I have to admit until that moment he was just a name on a page to me. After he belted out a stirring rendition of the National Anthem though, I certainly knew who he was.
After his first industry job at The Paulick Report, Brad moved on to PM Advertising and just finished a stint as COO of that company. He has now launched Equilottery as a full-time venture. Hopefully this piece will help clarify exactly what is Equilottery, and how it will benefit the industry. It definitely will do that. The industry has absolutely nothing to lose here, it can only gain. So hopefully when we say “of course I support Equilottery” we will have a little bit better idea of what we are supporting.
GALILEO TOP SIRE OF NEW A RUNNERS
According to data supplied by The Jockey Club Information Systems (TJCIS), there were 827 new A Runners through July 8 of this year. Almost exactly 50% of them (416) were 3-year-olds, so on the Leaders Lists by Sires and Broodmare Sires we’re running, we’ve noted the number of new A Runners and the number of those which are 3-year-olds. Keep in mind though, that horses which are top 2% earners mid-year are not guaranteed to be top 2% earners by the end of the year. At this stage of proceedings the top 2% of earners in North America have earned $83,710 or more, but at the end of 2013, horses had to earn $131,000 or more to be counted as A Runners. Inevitably a certain number of horses which qualify as midyear A Runners will end up being B Runners at the end of the year. If they’ve earned the minimum to qualify by now (July 8), they’ll need to earn another $50,000 this year to remain an A Runner.
Given that disclaimer, the leading North American or European sire of new 2014 A Runners through July 8 is Coolmore’s Galileo (Ire), with 14 new A Runners. Eight of them are 3-year-olds, including dual Derby winner Australia (GB) and G1 Irish 1000 Guineas winner Marvellous (Ire). The Irish National Stud’s Invincible Spirit (Ire) is tied for second with Lane’s End’s Smart Strike (10 each). Darley Kildangan’s Teofilo (Ire), Banstead Manor’s Oasis Dream (GB), and Walmac’s somewhat forgotten man Successful Appeal have eight new 2014 A Runners each. Gainesway’s top 2014 North American sire, Tapit, is one of four with seven new A Runners; six of his are 3-year-olds, including Tonalist, Constitution, and Coup de Grace. Lane’s End is the leading farm, standing four of the 15 active sires on this list: Smart Strike, as mentioned above; leading third-crop sire Curlin and Lemon Drop Kid, with seven new 2014 A Runners each; and Candy Ride (Arg), with six. Darley Jonabell’s Hard Spun, sire of GII Jim Dandy winner Wicked Strong, also has seven. Two F2011 second-crop sires have six new 2014 A Runners each in their first crops: WinStar’s Pioneerof The Nile and Gilltown Stud’s Sea The Stars (Ire), sire of Classic winners and ‘Arc’ co-favorites Taghrooda and Sea The Moon. WinStar’s Tiznow also has six, along with Ashford’s Giant’s Causeway, and deceased Harlan’s Holiday andUnbridled’s Song.
The leading damsire of new 2014 A Runners is Danehill, with 13 (only two by Galileo, though). A.P. Indy is second, with nine, followed by Darshaan (GB) (7) and Forest Wildcat (6). Four sires still standing have five new 2014 A Runners as broodmare sires: Darley Kildangan’s Cape Cross (Ire); Darley Jonabell’s Elusive Quality; Taylor Made’s Forestry; and WinStar’s Distorted Humor.
ADDENDA: British and Irish interests have succeeded in combining two ‘self-help’ programs into one, called Plus Ten (because there are rewards of £10,000/ €12,500 in lots of qualifying races). The Racing Post Yearling Bonus, which was originally devised by mostly Irish consignors, and a British scheme known as BOBIS (don’t ask) have now combined into one plan, with a three-stage entry fee: £150/€187.50 as a foal; £200/€250 as a yearling; and £350/€437.50 as a 2-year-old. The total bill is £700/€875, but could end up being paid by three separate entities depending on who owns the horse at the times of nomination. Progeny of British and Irish-based mares and stallions are eligible. Darley kicked off proceedings by announcing they are nominating 332 foals.
CONDOLENCES to the family of the great horseman Alan Lillingston, who died earlier this week at age 79. Owner of Mount Coote Stud in Ireland, Alan was a prominent figure in Irish racing and breeding for over
50 years. I first met him when Mount Coote was a prominent yearling consignor in the 1980’s. He was extremely knowledgeable, a complete gentleman and unstintingly generous with his time and expertise. He sired four children, including Luke, a prominent bloodstock agent who now manages Mount Coote, and Georgina Bell.