Youbet/TrackNet: Bettors Shafted/Trouble brewing

[Swale84]

Youbet.com, Inc. (NASDAQ:UBET - News) said today that unless TrackNet Media drops its requirement that Youbet forego other premier races to carry the 2007 Kentucky Derby and other TrackNet controlled content, customers of the industry's largest ADW will not be able to use its website or phone facilities to wager on the first leg of this year's Triple Crown. TrackNet Media is a joint venture of Churchill Downs, Inc. and Magna Entertainment Corp.

"Instead of the broader, more inclusive distribution formula the industry has been promised, TrackNet presented us with an unreasonable either-or scenario," said Youbet CEO Charles F. Champion.

"To carry this year's Kentucky Derby and its other content, TrackNet wants us to forego races from, among others, Aqueduct, Belmont, Saratoga, Del Mar, Keeneland, Oak Tree at Santa Anita, Saratoga Harness, Turfway Park, Turf Paradise, and Los Alamitos.

"It ought to be obvious to everyone with a major investment in horse racing that we should not have to choose one content group over another when we are prepared to pay fair prices for both," said Champion. "Under these circumstances, we think the industry needs to assess the ramifications of the two most dominant content providers in our business coming together to dictate content alignment and economics by forcing choices on us and others that are sure to limit competition, thwart innovation, frustrate customers and stifle growth."

[NTamm1215]

Can you copy the link for this?

Thanks.

NT

[Swale84]

Originally Posted by NTamm1215

Can you copy the link for this?

Thanks.

NT

http://biz.yahoo.com/bw/070423/20070423006113.html?.v=1

[10 pnt move up]

this is directly related as well to Ameritab's decision last week to go ahead and get the derby but lose all those tracks........take the derby, i will walk to my OTB and bet, but I dont want to lose EVERY track that runs this summer. Good decision by Youbet but they may pay for it.

[Scav]

Here we GO....

[timmgirvan]

customers/players be damned....apparently

[Bigsmc]

Originally Posted by Scav

Here we GO....

Time to get multiple accounts juiced up....my wife will be thrilled...

[Scav]

Originally Posted by Bigsmc

Time to get multiple accounts juiced up....my wife will be thrilled...

I am just going to stop gambling, my handle alone will make all these f'ers rethink their practices. I doubt their are many doing $100 straight exactas at CAL-EXPO

IN all honesty, this looks like a situation where it will get real tense within the AWD industry and just explode and some serious discussions will happen once companies start losing out.

Just means I can go to trackside and talk to Bill Downes Sr more often, which is a real treat.

[XIIPointStables]

Brutal news.

Customer screwed...again.

[Cannon Shell]

http://news.bloodhorse.com/viewstory.asp?id=38575

CD and Magna are strong arming already

[hoovesupsideyourhead]

you bet...no you dont...

[sumitas]

I don't think NY racing needs Magna or CD.

[deltagulf]

yea just the big guys trying to muscle away business.

[the_fat_man]

Last time I was on the Youbet site (and it was a long time ago)
their attitude was basically

USE IE (Internet Explorer)

or GET LOST


now, isn't this IRONIC

boo, hoo, hoo, Youbet

there's always a BIGGER BULLY around

[deltagulf]

yep the fans and players look to be getting the we don't care about you

[ceejay]

Just plain stupid. Handle drives the game. Making it difficult to play helps no one.

[Scurlogue Champ]

The next year or two is going to be really interesting when it comes to this game...

[cmorioles]

I picked a good time to live in Europe. I can tell you I won't EVER be opening a bunch of accounts to play all the tracks.

[rdgamblr]

TRACKNET MEDIA RESPONDS TO YOUBET ANNOUNCEMENT
ARCADIA, Calif., / LOUISVILLE, Ky. (April 23, 2007) - Scott Daruty, chief executive officer of TrackNet Media Group, LLC (“TrackNet Media”), today responded to the announcement of Youbet.com (“Youbet’), an advance deposit wagering (“ADW”) company based in Woodland Hills, Calif., that negotiations between Youbet and TrackNet Media have reached an impasse.
“Since its inception, TrackNet Media has sought broad distribution of its horse racing signals through a wide variety of wagering outlets and platforms, including ADW companies not affiliated with Churchill Downs Incorporated or Magna Entertainment Corp., the joint owners of TrackNet Media,” said Daruty. “We believe ADW companies should differentiate themselves based on innovation, customer service, customer satisfaction and the quality of their wagering platform - not based on exclusive content agreements. Unfortunately, for almost a decade our industry, and the growth of ADW, has been encumbered by exclusive content arrangements held by Television Games Network (“TVG”).
“In order to achieve our goal of broad distribution, TrackNet Media is seeking an agreement with TVG that would provide for a content exchange between TrackNet Media and TVG. Such an agreement would, subject to receiving appropriate horsemen and regulatory approvals, allow all responsible, regulated ADW companies to offer all major U.S. racing content. We strongly believe that such an arrangement is in the best interest of the racetracks, horsemen and wagering public. We are awaiting a response to our proposal from TVG.
“The Youbet management team is aware of the fact that we are seeking a content exchange agreement with TVG. Nevertheless, Youbet elected today to issue a public statement that mistakenly accuses officials from TrackNet Media and its joint owners of failing to keep their word to horsemen, customers and the industry as a whole. Youbet is the only large national ADW provider with a sublicense agreement in place allowing it to accept wagers on the TVG exclusive content on a going-forward basis. Youbet now seeks the right to accept wagers on TrackNet Media content as well - leaving Youbet as the only national provider able to offer its customers all major U.S. racing content. Such an arrangement would put all of Youbet’s competitors, including TVG, AmericaTAB, XpressBet and the yet-to-launch TwinSpires account-wagering service at a disadvantage, and it would unfairly penalize customers of those ADW platforms who want access to a broad range of content.
“We sincerely regret any inconvenience the present impasse between TrackNet Media and Youbet causes racing fans. However, we believe the ultimate solution we are trying to achieve is in the best long-term interest of the industry. To that end, TrackNet Media remains committed to its efforts to make all horse racing content available to all responsible, regulated ADW platforms on fair, market-based terms.”
TrackNet Media Group LLC (“TrackNet Media”) is a venture of North America’s premier horse racing and entertainment companies, Churchill Downs Incorporated (NASDAQ: CHDN) and Magna Entertainment Corp. (NASDAQ: MECA; TSX: MEC.A), which each holds a 50-percent interest in the company. TrackNet Media sells horse racing content from its stable of racetracks to a variety of domestic and international wagering outlets, including racetracks, casinos, off-track wagering facilities, and advance deposit wagering companies. TrackNet Media also purchases horse racing content from other content producers for distribution to its member racetracks and to advance deposit wagering platforms, including XpressBet Inc. and TwinSpires. TrackNet Media employs the highest standards of wagering security and integrity when licensing horse racing content to third parties to reduce the chances of signal piracy and ensure content producers receive the compensation they are due. TrackNet Media is headquartered in Louisville, Ky., and also has offices in Arcadia, Calif.
- END -

[SniperSB23]

I like it how they try and make it sound like they are being victimized and then in the end admit that really it all comes down to them not wanting to allow Youbet to have an advantage over them and that they are willing to make the industry as a whole suffer in order to not allow Youbet that advantage.