Magna Int'l Chair Frank Stronach, through the company's
Magna Entertainment spinoff, is "wagering that he can turn a
hodge-podge of racetracks across the country into one of the
globe's biggest sports-betting outfits," according to Sandra
Ward of BARRON'S, who writes that Stronach has said that
Magna Entertainment "may one day be a bigger success than"
its parent company. As a "growing number of gamblers" are
wagering on horse racing via TV and the Internet, Stronach
"expects his 'product' to be in the big demand from
companies hoping to cash in on the trend," including
youbet.com and the TVG. Magna Entertainment and "rival"
Churchill Downs are "neck and neck in pursuit of what might
be horseracing's biggest prize: the winnings to be had from
simulcasting rights and a bigger handle as online betting
lifts off." Ward writes that horse racing's parimutuel
handle has been "on an upward trajectory for the past five
years," as it rose 4.7% to $13.7B in '99, of which 23% was
wagered at Magna-owned tracks and 22% at Churchill Downs'
tracks. Additionally, "what's startling" is that 83% of
that growth "came exclusively from off-track betting." But
for off-track betting "to be successful, live racing must
stay alive," which is why Stronach is "spending heavily" to
improve his tracks (BARRON'S, 7/24 issue).
