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$14.5 Million Wagered Through California Advanced Deposit System

29 March 2002

CALIFORNIA –As reported by "More than $14.5 million has been wagered through California's advanced deposit wagering system in the first two months of operation, accounting for about 3.5 percent of the total handle on horse racing in the state. But while the new form of betting had an initial burst of activity, officials said they were concerned about the leveling off of wagering and the number of new account holders over the past four weeks.

"In their first full report to the California Horse Racing Board, representatives from ADW operators XpressBet, Television Games Network and Youbet indicated they are satisfied with the progress of their ventures in the state. They plan to concentrate on marketing efforts to attract new account holders now that they have settled in.

"…Part of Magna Entertainment Corporation, XpressBet handled $9.2 million of the $13.1 million wagered through ADW as of March 17, the most recent figures broken down by the CHRB. That handle is mostly thanks to wagering on Magna-owned Santa Anita and Golden Gate Fields. TVG handled $3.3 million placed mostly on out-of-state races and Los Alamitos quarter horse contests, and Youbet did $530,000 since beginning its operations in late February.

"…TVG and Youbet both anticipate big jumps in their account- wagering activity once Hollywood Park reopens April 24, with the Kentucky Derby on May 4. However, Hollywood Park and the Thoroughbred Owners of California must first come to an agreement that would allow TVG and Youbet to accept ADW bets in the state, CHRB chairman Alan Landsburg reminded.

"… In his TOC analysis of account wagering, [President, John] Van de Kamp reported that nearly $11 million of the ADW total was wagered by California residents. He said a total of only $132,000 during that 49-day period (Jan. 25 to March 17) was wagered on Santa Anita from out-of-state customers.

"…According to CHRB staff analyst John Reagan, ADW has accounted for $600,000 additional in purses and $600,000 in commissions. About $570,000 went to the three hub operators.

"Jack Liebau, director of California racing for Magna, said that the tracks have seen an increase of 5 percent in purses thanks in part to ADW. He noted that while attendance has been down slightly this winter, handle has enjoyed a slight increase.

"…John Hindman, vice president of communications for TVG, said that his company will launch its programming over Adelphia cable in greater Los Angeles on April 1, with the potential to reach 100,000 digital customers initially…"

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