Woodbine looking for piece of new market
Partnership with sportsbook eyed as way to grow sport
Jim Lawson and Michael Copeland are experienced hands when it comes to dealing with the challenges of operating a sports enterprise.
As former senior leaders with the Canadian Football League — Lawson as chair of the league’s board of directors, and Copeland leading the CFL and later the Toronto Argonauts in the president’s roles — the pair dealt with uncertain ownership situations, date-past-due stadiums, a franchise trying to be relevant in the country’s largest city, and the pursuit of an expansion franchise in Atlantic Canada. Today, in their respective roles as the CEO and chief commercial officer at Woodbine Entertainment, Lawson and Copeland are searching for new sources of revenue coming out of the COVID-19 pandemic and also trying to attract new, younger fans to horse racing.
Woodbine sees Canada’s expanded sports betting industry as a panacea for its pursuit of more money.
“We have to look at alternative sources of revenue, (so) we need to play a role in the new sports betting sector,” Copeland told the audience Wednesday at the post-position draw for Sunday’s 162nd running of the Queen’s Plate.
Both Lawson and Copeland are buoyed by the legalization of single-event sports betting for several reasons, now and in the future. When Bill C-218 to amend the Criminal Code of Canada was proposed in late 2020, the horse racing industry successfully lobbied for a provision that wouldn’t allow sportsbooks to take fixed-odds bets on races. Fixed-odds betting is overwhelmingly the most popular form of betting in British horse racing. But it’s the main reason why prize money in British racing is a pittance of what it is in North America.
Parimutuel wagering means bettors compete against each other with the track taking a percentage of the bets, anywhere from 15 to 30 per cent, essentially as a hosting fee. This is what funds prize money and track operations. Odds fluctuate until the race begins. You might bet a horse at 5 to 1 and watch it drift down to 2 to 1 at post time.
Fixed-odds betting means bettors are competing against a bookmaker rather than each other. Virtually all sports betting is done on a fixed-odds basis. If you bet at 5 to 1, you win or lose at 5 to 1.
“If you allowed those major (sportsbooks) to come into Canada and let them offer (fixed-odds) betting on horse racing, it would completely cannibalize our business,” Lawson said recently. “They’d be taking in all of the revenue, but not sharing in the expenses.”
With its Toronto racetrack and Mohawk Park just west of the city, its ownership of the WEGZ Entertainment sports bar in Vaughan along with offtrack betting venues across Ontario, Woodbine Entertainment is well-positioned to provide destinations for sports fans wishing to watch games and place a bet, like the traditional sports betting establishments in Las Vegas.
“Our locations provide that extensive network, and our research shows the appeal of the sportsbook is related to location,” said Copeland, who left his own sports consulting practice earlier this year to reunite with Lawson at Woodbine. “We’ve learned that sports racing is naturally a partner with betting on other sports.”
Fixed-odds betting in countries like Australia and New Zealand has sparked significant rise in wagering on horse racing and purses, thanks to easier access to digital betting platforms and sports fans seeking new ways to bet. In New Jersey, FanDuel has a branded sportsbook at the Meadowlands racetrack, and Monmouth Park has a partnership with William Hill for an on-site sportsbook.
Lawson also sees the benefits of partnering with a sportsbook to bring attention and revenue to the Canadian horse racing business.
“It will take a further amendment to the criminal code, (but) fixed odds will eventually come,” said Lawson. “The intent of the (current) federal legislation is to ensure horse racing would be able to stand on its own. Our very strong view is that Woodbine Entertainment and the horse racing industry deserves and is entitled to offer sports wagering.”
Until then, Woodbine is focused on using technology and innovation to attract new fans to the sport and placing a wager. The Dark Horse mobile app, which will be relaunched in conjunction with the Queen’s Plate, was created for the less experienced or casual bettor and includes the option of using artificial intelligence to automatically create a wager.
“It will allow a person to place a bet in a way that takes away any sense of intimidation,” Copeland said. “They can very easily make a wager whether they’re at the track or at home, and the Plate is a great opportunity to get new fans.
“Having an app on their phone is far more conducive to a younger demographic. (You could) get a push notification saying ... your favourite number, your favourite silks, your favourite horse, your favourite trainer is about to race. ‘Do you want to place a bet?’ ”
Lawson agrees that Sunday’s race, which includes a performance by Jim Cuddy and encourages fans to break out their finest threads and headpieces, is an opportunity to sell horse racing to newcomers.
“Like the CFL, baseball, tennis and golf, we have an aging demographic,” he said. “The younger demographic likes skilled betting. You see them playing poker, and they will play blackjack at the casino.
“Horse racing is a skilled bet.”