The New York Racing Association formally announced Jan. 30 the implementation of a new policy designed to reduce late-stage odds volatility by establishing guardrails around computer-assisted wagering activity within NYRA's pari-mutuel wagering pools.
Beginning Feb. 5, NYRA will require CAW activity to cease at one minute to post in all wagering pools not previously subject to high-speed wagering restrictions. As such, NYRA will institute a comprehensive approach to the management of CAW activity for the benefit of horseplayers.
The wagering policy shift was initially outlined by NYRA president and CEO David O'Rourke during a Dec. 9 panel at the Global Symposium on Racing in Tucson, Ariz.
READ: NYRA to Throttle CAW in Most Pools a Minute Before Post
CAW activity is defined by NYRA and its peer tracks according to the speed of wager execution. NYRA considers wagering to be CAW activity when that speed exceeds six bets per second.
"This policy reflects the importance of modernizing pari-mutuel wagering to address the technology-driven evolution of high-speed wagering," O'Rourke said. "Reducing odds volatility will increase pricing transparency and improve the wagering experience for horseplayers in New York and across the country."
CAW bettors account for 20% or more of the handle at many racetracks. Usually, CAW wagers are placed during the final moments before a race's start through sophisticated wagering technologies. This results in a lag in information to players, as the true odds for a race are only published on simulcast feeds and tote boards after the start. Bets by retail players are often placed in the minutes leading up to post time, though not at the volume of CAW players.
Some retail horseplayers have grown disenchanted with the tote access and rebates given to CAW players, and last fall a class-action lawsuit was filed against numerous CAW operators and tote providers, as well as the tracks and companies that own or operate such platforms or tote services. NYRA was one of those named in the lawsuit, as was Elite Turf Club and AmTote International, The Stronach Group, Churchill Downs Inc., United Tote Company, and Racing and Gaming Services.
In 2021, NYRA became the first racing organization in the United States to establish a timing restriction for CAW activity specific to the win pool. The measure, which prohibits CAW play into the win pool later than two minutes to post, has successfully eliminated dramatic late-odds fluctuations in that pool while providing NYRA with a foundation of relevant data and information.
Del Mar and Santa Anita Park are two other tracks that have since followed suit in this practice. These efforts have dramatically reduced late-odds fluctuations in their win pools.
Other leading tracks, such as Churchill Downs, Keeneland, and Gulfstream Park—which do not have such a restriction—have much more common odds swings, economist and horseplayer Dr. Marshall Gramm said at the symposium.
The current NYRA win pool policy will remain in effect, and NYRA will continue to offer its Late Pick 5 and Pick 6 as retail-only wagers.
During the symposium, O'Rourke described NYRA's intention to make raw data feeds publicly available. NYRA is currently developing a centralized source for raw tote data to provide horseplayers with advanced wagering information.
This press release has been edited for content and style by BloodHorse Staff.
