Betfair Hollywood Park to close this year
Racetrack closure is a further setback to Betfair's California exchange wagering plans
California racetrack Hollywood Park will close at the end of 2013, one year after securing a five-year naming agreement with Betfair.
The closure will come as a blow to Betfair, who had hoped to offer exchange betting at the racetrack in the future.
In a letter sent to the California Horse Racing Board (CHRB), Betfair Hollywood Park president Jack Liebau said attempts to improve the struggling racetrack’s business model were “without success”, in particular after spending “millions” in vain on lobbying to offer slot machines.
“In the absence of a favourable change in racing’s business model, the ultimate development of the Hollywood property was inevitable,” he said. “Sadly for we who love racing and Hollywood Park, it was simply a matter of time.”
The 75-year-old racetrack had been owned by Churchill Downs between 1999 and 2005 before being sold to the Hollywood Park Land Company consortium.
Although exchange wagering is not yet operational in California, the CHRB approved rules last year and issued provisional licences to Betfair TVG and Churchill Downs. However, in March, the Office of Administrative Law disapproved of the regulations, requiring the CHRB to resubmit them.
However, the Thoroughbred Owners of California have delayed a vote on whether it would accept exchange betting at the state’s thoroughbred tracks until the summer.
The 75-year-old Hollywood Park racetrack was also owned by Churchill Downs between 1999 and 2005.
Betfair acquired horse racing TV and wagering network TVG for US$50m in 2009 with a view to launching a betting exchange in California as soon as it became legal to do so.