Midland: Can penny breakage reinvigorate show wagering?
Kentucky's new penny-breakage law goes into effect with racing at Ellis Park on Friday. Show bets that would have been calculated at $2.96 will now pay $ 2.2 on Kentucky tracks. The effect of breakage is lessened at higher payouts and more impactful at lower payout. With the average payout of $.50, the effective takeout is reduced by 2%. The change will improve win, place and show wagering. It will also benefit show betting, which often has low pay outs on all three horses.
Show wagering amounted to only 4 percent of total handle at Belmont Derby last weekend. New penny-breakage law is a welcome improvement for horseplayers. Ellis Park’s eight-race card on Friday features an average of 10.1 horses per race.
