CAW

Delta Downs decided to give horseplayers an unprecedented break last week. For their daytime cards on Tuesday and Wednesday, the track lowered the takeout in all pools to just 10%. While other tracks have experimented with lowering the takeout in some pools, never before had anyone decided to slash the take in all pools. By doing so, it looked like Delta would provide the industry with some much needed data. What effect would such a low takeout have on handle and how would the ADWs and the CAW players react?...

With what feels like the culmination from years of mounting pressure, the volcano of opprobrium over Computer Assisted Wagering (CAW) erupted this summer, spilling all over the industry. The debate around CAW players typically surrounds the edge they wield over regular gamblers thanks to their use of sophisticated technologies that allow them to precisely read the markets and to place massive wagers across many pools in the final seconds of betting-sometimes leading to extreme late odds changes-as well as the attractive rates and rebates offered to them which are unavailable...

Former horse racing gambler Ryan Dickey has filed a class action lawsuit against several entities related to wagering platforms offered to Computer Assisted Wagering (CAW) players under the under the Racketeering Influenced and Corrupt Organizations Act ("RICO") and under state law, alleging they have "organized and participated in the corruption of the betting system to the detriment of the class." The lawsuit was filed Friday in the U.S. District Court for the Eastern District of New York. The dependents comprise The Stronach Group (TSG), Churchill Downs, the New York Racing...

In an industry that always seems petrified by the idea of change, the announcement that a new performance-based rating system based on an Equibase algorithm is about to debut at Santa Anita probably didn't go over too well with horsemen.  Each horse will be assigned a number generated by Equibase and then races will be written using the system. One of the first races that may come up, if it fills, is open to horses rated between 80-95. The rating number is different from Equibase's speed figures. Santa Anita is...

Last month, Rhodes College economics professors Marshall Gramm and Nick McKinney published in these pages a study showing the estimated impacts at Aqueduct over the past four winters from CAW players during the last cycle. They found that since 2022, the percentage share from last cycle monies wagered into the Exacta, Trifecta, Superfecta and Early Pick 5 pools (among others), had grown significantly. There was a problem, however, with the study: unbeknownst to Gramm and McKinney, the New York Racing Association (NYRA) had switched to a new Tote operator in...

Editor's note, by Dan Ross: Despite the New York Racing Association's efforts in recent years to limit Computer Assisted Wagering (CAW) participation in the Win, Late Pick Five, and Pick Six pools, the influence these teams exert in terms of last-cycle betting impacts appears to be growing in several other key pools, according to research conducted by economics professors Marshall Gramm and Nick McKinney, both of Rhodes College in Tennessee. Indeed, they found that since 2022, the percentage share from CAW players of monies wagered last-minute into the Exacta, Trifecta,...

Amid the embattled economics of horse racing, more and more attention has been placed upon Computer Assisted Wagering (CAW) players. One such focus has surrounded whether these behemoths of the betting pools are contributing their fair share back to the sport. That's the case certainly in California. Last year, the California Horse Racing Board (CHRB) became the first regulator of a major racing jurisdiction to really dig down into the issue during a public hearing--one that later led to a published Q&A. The scrutiny that California has received hasn't always...

Actually, 2024 wasn't that bad of a year for horse racing. There were no major scandals and the rate of horses breaking down fell again. At the tracks under HISA's jurisdiction, it looks like the fatality rate for the year will be about 0.84 horses per 1,000 starters. Considering that same rate in 2009, the first year statistics were kept, was 2.00 per 1,000 shows just how far the sport has come. The GI Kentucky Derby was as thrilling a Triple Crown race as the sport has seen in some...

No industry gathering at which Thoroughbred executives discuss pricing issues is immune from the intertwined topic of death and taxes. In the pari-mutuel world, that means talking about takeout, or, more specifically, how the disparate fees that different classes of bettors must pay for the privilege of placing wagers are killing off smaller-scale casual horseplayers. A Wednesday panel discussion at the Global Symposium on Racing hosted by the University of Arizona Race Track Industry Program in Tucson was the latest Thoroughbred confab at which the takeout issue got batted around...

Golden State Racing launched Saturday its inaugural 26-day Thoroughbred meet at Pleasanton. But punters hoping to wager on its product through two popular ADW platforms are currently shut out--a scenario stemming from a disagreement over the fees that form a key part of a track's purses and revenues. Currently, neither The Stronach Group's (TSG) ADW platform Xpressbet nor the New York Racing Association's NYRA Bets include Pleasanton in their racing menus. Similarly, Elite Turf Club players are also unable to play on the Pleasanton product. Owned by TSG and NYRA,...

Calling extreme odds changes the "Achilles heel of pari-mutuel wagering," Michael Fitzsimons, the Hong Kong Jockey Club's executive director of racing products, recently sold the audience at the Asian Racing Conference on a plan to standardize global access to the World Pool by sophisticated computer teams. "For the first time, we are proposing this year to work on the World Pool professional hubs, where we come together with operators to agree to the rules and through our smart contracts technology, we will enforce these rules no matter where the professional...

by Walter Toner Rainy afternoon on Cape Cod and I had a few minutes to kill, so flipped the channel to TVG for a quick flutter. I selected the filly Just Like Magic, approaching the gate at 7-5 as the recipient of a $10 win wager in the 3rd race Oaklawn (3/28). She charged up the rail and won. Final odds were 3-5. WTF. Sorry for the crudeness. Racing will never engage the next generation of punters with 15-27% takeout and NO fixed odds, when they can bet on sports...