Upcoming meet at Colonial Downs to feature lower takeout

Colonial Downs in New Kent, Virginia, will have takeout rates of 16 percent for its win, place, and show pools and a rate of 20 percent for nearly all other bets when the track reopens in August, the track announced on Monday.

The rates for the win, place, and show pools will be near the low end of the scale among major racetracks, while the rates for the exotic pools will be among the lowest of any track in the country, at least when considering the anticipated blended rate for all the pools. Colonial will also hold a daily pick five with a 12 percent takeout, the track announced.

Takeout rates are the amount of the pari-mutuel pool withheld before distributing payouts to winners. Low takeout rates favor bettors because of higher payouts, and most racing economists contend that takeout rates in Thoroughbred racing overall should be lowered to encourage more betting.

Colonial noted in a release that the state’s horsemen’s group, the Virginia Horsemen’s Benevolent and Protective Association, endorsed the rates. Horsemen’s groups sometimes favor higher takeout rates because purses are typically funded by wagering revenues. Colonial is using revenues from devices similar to slot machines to fund the majority of its purses, expected this year to be $500,000 a day.

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“Today more than ever, optimal takeout rates are essential ingredients to a successful race meet,” said John Marshall, the executive vice president of the track, in a release.

“Racing in America faces serious competition for customers, and it is heartening to see Colonial Downs is meeting that challenge with pricing solutions designed to attract and retain horseplayers,” said Patrick Cummings, the executive director of the Thoroughbred Idea Foundation, a think-tank-style organization that advocates for lower takeout rates.

Colonial Downs last held a race meet in 2013. Last year, the Virginia legislature passed a bill allowing the new owners of the track to operate historical horseracing machines at the track and at as many as 10 off-track betting facilities. Colonial is so far the only business in the state granted the authority to operate the devices.

The track plans to run for 15 days late this summer, beginning on Aug. 8. Track officials have said they plan to run as many as 30 dates next year.

Colonial received approval for the rates at a Virginia Racing Commission meeting on Monday.