Thoro-Graph has filed a lawsuit against the New York Racing Association and NYRA Bets alleging breach of contract and asking for six figures in monetary damages. The underlying contract appears to be in its final months of existence as a result of the dispute.
The case filed in State Supreme Court in New York County seeks compensatory damages of not less than $500,000.00, including actual damages in excess of $333,000.00 to date, payment for a 50% share of profits from wagers, and attorney fees.
Thoro-Graph, which provides chart-style handicapping data that measures how fast Thoroughbreds ran races, partnered with NYRA and NYRA Bets in March 2017 to attract customers outside New York to sign up and wager on NYRA's advance deposit wagering platform, NYRA Bets.
Thoro-Graph alleges the joint venture has gone awry. The lawsuit, filed on Dec. 19 and first reported by Thoroughbred Daily News, alleges material breaches of the joint venture by the NYRA defendants. The net revenue derived from what the complaint calls "qualifying wagers" is the object of the dispute presented in the complaint.
The complaint alleges over $100 million in betting handle was generated through 2022 "solely through the joint venture resulting in $3 million in revenue for the NYRA defendants and approximately $2 million for purses." Thoro-Graph seeks damages bringing its share to 50% of those revenues and claims it has made demand for payment "only to be rebuffed with the threat of termination of the joint venture" by NYRA—a threat which, according to the complaint, has materialized.
The complaint states only one side of the case, and the NYRA defendants are not required to answer the allegations until February. Based on language in the complaint, at least part of the dispute appears to arise from expense deductions called import host fees, or host track fees, charged by NYRA.
According to the complaint, NYRA responded on Dec. 12 to multiple demands for payment by Thoro-Graph by serving a 180-day notice of a termination of the parties' agreement that will take effect June 10. Thoro-Graph says the agreement "obligates the NYRA defendants to continue to make full payment to Plaintiff for the succeeding six months of 2023 (or the remainder of the term of the existing Agreement), and then payment at 50% for an additional second six-month period in 2024."
Pending a response in court, NYRA said through vice president of communications Pat McKenna on Jan. 13, "NYRA will honor the terms of confidentiality agreed to by the parties involved and reply to the court by Feb. 10. This contractual dispute does not and will not impact NYRA customers."
Attorney Karen Murphy filed the complaint for Thoro-Graph, whose president is Jerry Brown. Brown is also known as an advisor for the purchase and management of racehorses that include 2009 Horse of the Year Rachel Alexandra, two-time Breeders' Cup winner Da Hoss, and multiple grade 1 winner Victory Gallop.
