I don’t think that I’m revealing a secret when I tell you that most gamblers lose. The casinos in Las Vegas and elsewhere weren’t built by having more people win than lose.
The horse racing industry has struggled in recent years. Ignoring the economics of the horses (I’m definitely not an expert on equine genetics and economics), race tracks take up a large space, and the glamorous sport of the 1920s and 1930s isn’t that glamorous to individuals right now. Sure, individual races like the Kentucky Derby still draw huge crowds and large purses and betting, but most race tracks are struggling to keep afloat.
And it’s far, far harder to win as one who bets on the horses. Let’s say that there are five horses running in a race, and each of them has an equal chance of winning (a 20% chance, or odds of 4 to 1). But that’s before the house cut, and the government’s cut.
Under a new California law that’s awaiting Governor Schwarzenegger’s signature, the government’s take on two-horse wagers (exactas and daily doubles) will increase from 20.68% to 22.68%; the take on three or more horse wagers will increase from 20.68% to 23.68%. While this won’t change the odds, the purse will be reduced by 2% or 3% (depending on the bet being made). Adding in the take from the house and the government, that five-horse race is really a six-horse race…and that’s before you have to pay income tax on your winnings. Yikes!
The feeling among the legislators is that they’re dealing with a captive audience, and they won’t notice that the purse on the $1.4 million Pick-Six is now $1.37 million…and they’re probably right. Still, this does emphasize that the house always wins…especially in horse racing.
