The Pennsylvania Horse Racing Commission (PHRC) made a significant decision on Tuesday by granting Thoroughbred racing dates for 2025. These dates will see 150 programs at Parx, 105 at Penn National, and 76 at Presque Isle Downs. However, before the vote on these dates, the executives from each track were asked to explain the rationale behind the 2025 takeout rates that accompanied their licensee's date requests. Takeout rates, which are the per-bet pricing structures imposed by tracks and states on wagers, have long been a concern for horseplayers as they act like a tax on betting. But they also provide the financial backbone for the sport.

Unveiling the Pennsylvania Horse Racing Takeout Rates

Penn National's Takeout Rates for 2025

Eric Johnston, the director of racing operations at Penn National, revealed that the takeout rates for 2025 will be 17% win-place-show; 20% exactas, doubles, Jackpot Pick 6 and Jackpot Pentafecta; 31% trifectas, twin trifectas; 30% superfectas and Pick 6; 25% Pick 3, 4 and 5. Johnston explained that these rates are comparable to those around the country. While the trifecta wagers come in at 31%, which may seem a bit high, when considering the history of racing in Pennsylvania, which has transitioned from on-track betting to simulcast-wager driven, it doesn't seem overly outrageous. The business has changed, and live wagering now makes up less than 10% of the total handle. These takeout rates are one of the things that keep Penn National in the game. There are many simulcast sites and computer wagerers who bet on them because of these rates. If they were to cut these rates, they would become less valuable. They're not getting rich from the current bet amounts, but it's all part of the bigger picture.Another aspect is that the higher takeouts are associated with the pools that have the highest payouts, so they're not as noticeable. But it's not something that should be sacrificed to lower the rates as it could have a significant impact on their operations.

Presque Isle's Takeout Rates for 2025

Matthew Ennis, the director of racing at Presque Isle, stated that the takeout rates for 2025 will be 17% win-place-show; 20% exactas, doubles; 25% trifectas, superfectas; 23% Pick 3 and 4; 15% Pick 5. When looking at everything competitively compared to his parent company at Churchill Downs, Ennis feels that Presque Isle Downs has a takeout structure that serves two purposes. It attracts the pari-mutuel dollar and generates the revenue needed to guarantee quality race cards and field sizes. He doesn't believe that their wagering structure is out of line and is very competitive. They offer takeout options that are appealing to players in relation to other tracks. While takeout rates don't tell the whole story of how players choose to wager their dollars, having a player-friendly structure is beneficial in generating larger handles at Presque Isle. Of course, he has to follow the protocol with his corporate team at Churchill Downs and abide by the ranges they give.

Parx's Takeout Rates for 2025

Joe Wilson, the chief operating officer at Parx, mentioned that up until close to five years ago, their takeouts were 17% on win/pace/show; 20% exactas, doubles; 26% on 'pick' bets, and 30% on tris and supers. But on January 1, 2020, they reduced their takeout to 17%, 20% and 25%. The tris and supers went from 30% to 25%, and the 'pick' bets from 26% to 25%. A couple of years ago, they added their Philly Big Five at 15%. Wilson finds it amazing that people still comment on social media that Parx should lower their takeout when they actually lowered it five years ago. Their blend of takeout rates right now is at 19.8%, which is approximately 1.5 points lower than Maryland tracks (21.25%), on par with Delaware, and even with Monmouth Park. So they are as competitive as anyone in the area. He also emphasized that if the takeout is reduced too much, their signal goes out worldwide, and importers won't promote it as it's not in their best interest.