(Monday, January 25) It seems unfathomable that horseplayers would be stuck with a price hike during these bad economic times, but that is exactly what Bo Derek and the rest of the California Horse Racing Board did by approving a 2% hike in the takeout at Los Alamitos, which went into effect on Jan. 21.

The CHRB approved the takeout increase on Jan. 15,

Say it ain't so, Bo!

The takeout increased from 15.63 percent for win, place, and show bets to 17.63 percent, and from 20.88 percent to 22.88 percent for all exotic wagers.

The CHRB projects that the additional 2% withholding would net an increase of $955,338 on win, place and show bets, and $2,847,429 on exotic wagers.

If the CHRB is waiting for that $4 million, I hope they are not holding their collective breaths.

There is a better chance of Bo Derek starring in a remake of "10," which would probably be called "6".

Los Alamitos track owner Ed Allred said the monies from the increased takeout would be split between the struggling simulcast facilities and the horsemen.

Jeff Platt, the president of the Horseplayers Association of North America (HANA) spoke on behalf of the horseplayers, but the board voted 6-1 in favor of the price increase.

Platt posted this on the Pace Advantage forum:

"Some of the commissioners simply do not belong on a board such as the CHRB. When you read the transcript it should be interesting to note that Bo Derek and I got into a brief argument where she said that even after the takeout increase, prize payouts (takeout) would still be more favorable for the player at Los Al than slots prize payouts at a local casino.

I corrected her saying that WPS takeout after the increase would be 18% returning 82 cents for every dollar wagered vs. a slots return of 91-92 cents per every dollar wagered. She told me I was wrong. It was only after John Harris corrected her that she shut up."

So here is at least one CHRB member voting on a takeout increase, and it seems obvious she really does not even understand how takeout works.

That is scary stuff indeed, but hardly surprising.

The takeout increase is supposed to be temporary, and it will be reviewed in September.

However, I am sure track executives at Santa Anita, Hollywood Park, and Del Mar are going to be watching the handle figures at Los Alamitos with keen interest.

If handle does not decrease, I am sure they will be next in line to ask the CHRB for their share, essentially pick pocketing their very own customers.

Numbers from the first week of wagering at the higher prices at Los Alamitos do not look good for Bo and her buddies.

All source handle at Los Alamitos
Jan 21-24 with price increase: $3,316,346.00
Jan. 14-17 prior to increase: $3,960,586.00
Last year same week: $4,184,517.00

Handle was down 16.27% last week compared to the prior week, although there were three less races run, and the weather was not good.

Comparing the numbers to last year, handle was down 20.75%.

It appears the horseplayers have fired the first salvo.

However, some HANA members have expressed that they do not wager on Los Alamitos much, and I had difficulty finding any horseplayers that wagered seriously on the quarterhorse track.

So it will be interesting to see how Los Alamitos does over the next few months. This is a real litmus test for horseplayers and the industry.

In the past, tracks could raise takeout and hardly anyone would notice. Now, with groups like HANA, and an abundance of horse racing forums and social networking sites, information is passed around much easier, and at least for one week, horseplayers seem to be winning this battle, but it is far from over.

It makes no fiscal sense for tracks to raise takeout, which ultimately will lead to less handle, as less money is handed back to horseplayers to wager.

Handle in the U.S. already took a big hit, from $13,669,477,234 in 2008 to $12,319,129,673, a decrease of 9.88%.

If Best Buy had a 10% decrease last year, the board of directors would not attempt to solve the problem by raising prices on HD televisions by 11% in 2010.

Their customers would shop elsewhere, further hurting Best Buy's bottom line.

The horse racing industry needs to learn it works the same in our game, and over the next few months, Los Alamitos and the CHRB are going to find out the hard way.