Certain experiences, whether they are on the written page or in life, stir memories of different times. I have often talked of driving into Saratoga Springs along Route 9 because the small motels that dot the landscape remind me of the town’s history. Similarly, Andy Beyer’s My $50,000 Year at the Races evokes nostalgia for a horse racing world that once existed.
The book tracks Beyer as he sets out to put together all the advantages he has learned in his experience as a horseplayer. The author bets a series of major and minor tracks in 1977. He does this in the only way one could pursue this legally over four decades ago. Beyer goes to each track, sets up living arrangements, and wagers every day.
For those living in northern climates, the idea of spending the early months of the year in Florida is an appealing one. He sets up camp at Gulfstream Park and the beautiful Hialeah, a track that has not run thoroughbred racing in so long its place on the racing calendar seems forgotten. For those who were there, however, the loss resonates, along with the wish to somehow bring it back to life.
The edges that Beyer enjoyed no longer exist, but they are instructive in what is needed to succeed in a gambling endeavor. What are perceived as inconveniences also allow the ability to beat the game. Beyer built his edge on figure handicapping. In the mid-1970’s, speed figures are not part of past performance products. Beyer with the publication of Picking Winners in 1975 and subsequent books will popularize the practice. One could say that he ruined his own edge but taken in whole the route chosen was almost certainly more lucrative than the alternatives. The figures became the basis for his books and day job, and when the wager value declined, he capitalized the Beyer Speed Figures. They appeared first on Bloodstock Research Information Services, then in the Racing Times, and finally at the Daily Racing Form. He still supplies them today and one guesses the residual yearly dividend they supply dwarfs his earnings from wagering.
Going back to 1977, he has a tool that not many of his competitors employ. The sport is more popular, indeed the only option for gamblers in many jurisdictions. The pools are less efficient, filled with many more recreational gamblers than exist today. Off Track Betting is brand new and players who partake are disadvantaged in New York by a 5% surcharge and are literally betting blind. This is because they cannot see or hear calls of the races and there is no live feed from the track. Thus, they face a much tougher hurdle than those on site. As such, much of the off-track money is unsophisticated and a boon to sharper players.
The cost structure is similar to that of today. Exotic bets are limited and in their infancy. Those with stronger math abilities have an advantage. It is not an uncommon site to see players with clipboards tracking prices in different pools. These are the years before computer analysis of betting patterns, pools are stable, and arbitrage opportunities exist for those so inclined.
The Inspirational Angle
The book resonates because it is the story of an outsider beating the odds with just his wits. The idea is you can make money with skill alone and can do it by yourself. Throw in some of the biggest horse racing venues and it has a romantic nature to it. The method Beyer uses to make money is also approachable. He clearly explains how to make figures. It is work intensive but only requires basic math and observational skills. At the time he writes the book, there are tracks in most large cities in the country and plenty of smaller ones. You can apply the method right where you live. For at least the next decade after the book is written, figures are not easily available to the majority of players.
There is camaraderie in Beyer’s circle of journalists and handicappers. They are following the racing circuit in the hopes of a life changing score. It is an appeal to dreamers. Beyer has often noted opening up a Racing Form and saying, ‘this might be the form that changes your life’.
In the next decade, the 1980’s, he will tackle the lottery type bets, like twin trifectas and Pick 6’s. Today as in that era, when jackpot pots like the Empire 6 in New York have mandatory payouts, the effective takeout can be lowered for players.
The book is similar to memoirs such as Reminiscences of a Stock Operator in that the reader rides along with the ups and downs of the author. Indeed, investors and traders have found inspiration from Beyer’s short book. The stock market commentator/writer Jim Cramer refers to it in his autobiography.
The Importance of Cash Flow
In 1977, Beyer works as a newspaper racing columnist while pursuing his goal of generating meaningful income from betting. The combination is synergistic. His efforts create material with which to write about, which in turn makes him better at his job. More importantly, it provides a steady stream of cash flow which will smooth out the ups and downs. As a result, he can bet at a much heavier level. It is a situation anyone who had developed an edge can use to greatly increase net wealth.
You can find this process in historical stories from all walks of life. Arnold Schwarzenegger has detailed early success in plowing earnings into California real estate. Similarly, a forward-looking Cary Grant buys up television rights to film properties with earnings from acting in a period when the value of that move is far from clear.
We have discussed this in relation to investing. Steady income minimizes the portion of a portfolio that needs to be allotted to bonds or similar lesser risk investments. It permits you to make the big plays that result in the largest returns over the years. For Beyer, it allows him to achieve a level of play where he can win much more than he is paid on a yearly basis.
In other books, he talks about how without another source of income, the necessity to find plays can lead to bad decisions or make a player gun shy.
Over four decades ago, Beyer does have an edge. He has formulated a performance metric that only a small amount of people are using at the racetrack. It lets him overcome a large takeout. Beyond that, his initial work has continued to pay dividends as he now supplies those figures to the sport’s most popular publication.
Derailed by Larceny
Near the end of his journey, Beyer hits the fair circuit and confronts situations where what he sees on past performances pages is rendered meaningless. A late blink on a toteboard is more indicative of what is about to happen. Everyone who has gambled, invested, or faced a challenging employment situation can relate. Races can be unfair, major corporations can be revealed as frauds.
You will face rigged games all your life. Learning how to see the red flags and avoid situations where you are at a disadvantage are important skills to develop.
Celebrating Success
In the middle of the book, things are going so well for Beyer that he is looking at possibly making $100,000 for the season. That’s about $430,000 in today’s dollars. While, ultimately this does not happen, he describes the mistakes he makes in his post-mortems of important bets made.
In an interview during the 1980’s, Beyer will state that indeed he has had $50,000 afternoons in the years since his account of 1977 was written. Despite writing three books between 1975 and 1983, he would only author one more handicapping book. This is most likely because each book sought to teach different handicapping concepts.
The era you are living in changes but the factors needed to succeed, the edge you find, and the emotional pitfalls persist. Reminiscences of a Stock Operator details events over a century ago and My $50,000 Year at the Races tracks events from over forty years ago. Still, they both offer something to learn, even if it is the quest to succeed at difficult tasks transcends generations.
Standing Still is not an Option
It is interesting that Beyer closed My $50,000 Year at the Races with the realization that it is an ongoing struggle to maintain an edge. He understood he might have to continually change his approach to stay ahead of the game. Indeed, his columns for the Washington Post in 1979 show that he has embraced trip handicapping, analyzing the way a race is run.
To his credit, as he found ways to beat the game he reported and wrote books on them. The Winning Horseplayer (1983) details his immersion in the world of trip handicapping. Beyer On Speed (1993) will find him adapting to changes in the availability of information and detailing exotic betting strategy. His embrace of volatility and the big score are essential pieces of his success.
Also, the work you do sometimes leads to opportunities you never imagine. At the time Beyer wrote My $50,000 Year at the Races (1977), he might not have envisioned that the speed figures themselves would become a recurring source of income. Now in his mid-seventies, Beyer clearly has a passion for making figures; it is evident in the way he discusses how they are made. The team will revisit figures in the light of subsequent results or new information. Within the last five years, he has changed the way turf figures are generated. Video editing software is used to time races and ensure his figures are accurate.
All of Andy Beyer’s titles are available as electronic books at prices between $9.99 and $11.99. As with all technical books with tables and charts, My $50,000 Year at the Races is better read on a tablet with much more viewing real estate. Picking Winners, The Winning Horseplayer, and Beyer On Speed are all available in paperback as well. My $50,000 Year at the Races is available in print in the used book marketplace.
Conclusion
In this article, we revisited Andy Beyer’s book My $50,000 Year at the Races. Released in 1978, it covers Beyer’s adventures in betting during the 1977 racing season. Looked at historically, the decade marked a high point for racing. We can look at the circumstances surrounding it to try and understand the factors and advantages that Beyer used to succeed. As such, they explain what impacts anyone’s ability to succeed in a gambling pursuit.
