this is why it's a good idea for racecourses to be industry-owned and betting firms to be independent
Magna Entertainment, owner of Golden Gate and Santa Anita racecourses, and Expressbet pari-mutuel wagering on those tracks is about to file for bankruptcy.
Read this article from The Paulick Report
So two of the USA's best racecourses are about to go broke. You'd think there's a buyer out there somewhere for them. But what about all the debts for prizemoney etc to owners, trainers, jockeys? Most of them are really struggling at the moment, they need this like a hole in the head, particularly with the US-style of racing where they stick to one track (at least for several weeks or months at a time) rather than race all over the state or country. Great Leighs going tits up in the UK is totally different - payments are centralised and jockeys and trainers run all over the UK.
On top of this, Expressbet holds hundres of thousands, probably millions of funds in betting accounts from their gamblers. There is no regulatory system in the States where the company has to put up a huge security bond with the local regulator which can be drawn upon if the firm gets in financial trouble.
This is not the first track owner to go bust in the US - they need proper gambling regulation with racetracks (a commodity which can easily go bankrupt) and betting firms (impossible to go broke if run by anyone who can work a calculator) kept miles apart otherwise this ugly cycle will continue...
UPDATE - UPDATE
Magna Entertainment has filed for Chapter 11 bankruptcy, however Expressbet is not one of the subsidiary companies included in the Chapter 11 filing.
Read this article from The Paulick Report
So two of the USA's best racecourses are about to go broke. You'd think there's a buyer out there somewhere for them. But what about all the debts for prizemoney etc to owners, trainers, jockeys? Most of them are really struggling at the moment, they need this like a hole in the head, particularly with the US-style of racing where they stick to one track (at least for several weeks or months at a time) rather than race all over the state or country. Great Leighs going tits up in the UK is totally different - payments are centralised and jockeys and trainers run all over the UK.
On top of this, Expressbet holds hundres of thousands, probably millions of funds in betting accounts from their gamblers. There is no regulatory system in the States where the company has to put up a huge security bond with the local regulator which can be drawn upon if the firm gets in financial trouble.
This is not the first track owner to go bust in the US - they need proper gambling regulation with racetracks (a commodity which can easily go bankrupt) and betting firms (impossible to go broke if run by anyone who can work a calculator) kept miles apart otherwise this ugly cycle will continue...
UPDATE - UPDATE
Magna Entertainment has filed for Chapter 11 bankruptcy, however Expressbet is not one of the subsidiary companies included in the Chapter 11 filing.
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