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Racetrack Owner Paying MSOs to Carry Betting Net

Cable World, Jan 13, 2003

Byline: JON LAFAYETTE

Magna Entertainment is offering operators a sure thing.

The Canadian company, which runs 13 race tracks and has access to coverage from 60 more, pays systems that carry its new Horse Racing TV channel. Instead of operators shelling out 5 to 10 cents for a digital channel, they'll get a minimum sub payment about that size. They get more than a minimum if subscribers place enough bets on races.

"This is something cable operators have wanted for years: free sports content for their digital tier," said Bill Bridgen, a former Fox Cable distribution executive who is president of HRTV.

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Americans bet $15 billion on horse racing in 2001, according to Bridgen, with 85% being done away from the track.

Magna is already several furlongs behind TV Games Network, owned by TV Guide and aligned with Fox. TVG is in 14 million homes, including basic subscribers to EchoStar's Dish network. It is also provided free to operators. In California, it has an 81% share of offtrack wagering, with more than 40,000 betting accounts. A spokesman for TVG wouldn't comment on HRTV.

HRTV is in 900,000 households. Many are from a channel Magna had been running that is on Comcast systems in Western Pennsylvania. Time Warner Cable in San Diego is testing the channel, and the network also has an agreement in place with the National Cable Television Cooperative.

Bridgen said both networks can coexist because no single outlet can cover all of the races being run in the country. Two networks would also provide more promotion for "the sport of kings," which would benefit Magna's turf business, he added.

The 24-hour channel shows races and track odds, but makes its money when subscribers bet via the phone system or over the Internet through Magna's national account wagering system, XpressBet. The network does not carry any advertising. Bridgen said the network is working with Spyglass to create an ITV betting application.

Magna will be able to promote the channel at its tracks with signage and kiosks, and it will have special events such as Charter Day at Santa Anita, Bridgen said.

THE NEXT QUESTION:

*Will cable operators be able to profit on other forms of electronic gambling?

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Racetrack Owner Paying MSOs to Carry Betting Net

Cable World, Jan 13, 2003

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