You could speculate that the cost of putting on the show at a racetrack is significantly higher than the cost of planting a few slot machines in a carpeted room.


But since racing's costs are 'fixed' , then a doubling of handle should allow for a halving of takeout. But the handle can't possibly double until the takeout is slashed.


Not sure it would double even in the face of a 10% takeout, but it might. I wonder how much betting there would be on the races at Saratoga with a zero takeout. They really should try it for a race or two.