My 50 cents

While researching a story about Keeneland's plan to offer 50-cent pick three wagers , I came across an interesting statistic on the growth of Keeneland's pick four pools since the minimum was reduced to 50 cents.

Keeneland introduced 50-cent pick fours at its fall 2006 meeting. From 2005 to 2009, Keeneland's annual pick four handle has grown every year, for a total increase of 61.1%.

The 50-cent minimum is one of several factors that have contributed to the popularity of the bet. The pick four is one of the fastest growing bets in American racing. And big fields, quality racing, and a 19% takeout make Keeneland's pick four one of the most attractive in the country.

But at the very least these numbers show that pools can grow even when the minimum wager is decreased.

Year.....Spring Meet....Fall Meet.........Total (%change)
2005....$3,420,879......$3,286,424.....$6,707,303
2006....$4,483,671......$4,043,433.....$8,527,104 (+27.1%)
2007....$5,143,745......$4,102,803.....$9,246,548 (+8.4%)
2008....$5,722,696......$3,889,018.....$9,611,714 (+3.9%)
2009....$5,171,676......$5,637,777.....$10,809,453 (+12.5%)

In addition to making a bet more affordable, thereby encouraging more people to play, decreased minimums also help bettors avoid the tax man because bets that pay less than $600 are never reported to the IRS. (Two 50-cent pick four tickets that pay $500 are not reported, whereas the same sequence bet on a $1 ticket would be reported)

Keeneland's Director of Simulcasting Jim Goodman described the growth of the track's pick four pools as amazing.

"We think it’s a positive thing for the horseplayer," Goodman said. "Being player friendly is one of our mottos, and I think all tracks should look at minimum wagers and help the players if there’s something that they can do."

That's a refreshing statement, particularly coming from a racetrack employee who is in a position of influence.

If I was running a track, I would offer minimum unit wagering (and a takeout below 20%) for all multi-race/multi-horse bets.

The pick six in Southern California, where carryovers are an important part of the game and there are enough gamblers willing to play for a $2 stake, would be my one exception to the rule.