As the New York Racing Association has led the way in attempting to make the information battle that is pari-mutuel wagering more fair for retail players now sharing pools with computer-assisted wagering players, hopefully other tracks and racing associations will give this puzzle some thought.
An out-of-the-box idea: Let's make on-track wagering pools for win, place, show, exacta, and daily doubles separate pools than what's offered for off-track players. The wagering pools for each of these wagers would feature two pools, one for on-track players and one for off-track players. (To be clear, those off-track pools also would include the CAW players.)
Obviously this type of change would be for tracks that already see a significant amount of CAW action and they would need a certain level of on-track attendance.
If tracks took this approach, there are several reasons it could provide long-term gains. And for those weighing the risk of this big change, it's not like on-track wagering is doing well under the current approach. Take a shot.
This separate pool approach for on-track players would eliminate late odds shifts that are souring many players and making it difficult for retail players to determine which horses have value. This is because the horse listed at 5-1 odds 30 seconds before the gate opens can go off at 8-5 when the CAW money comes into the win pool during the final cycles. It's a frustrating situation.
This separate on-track pools approach would likely see those new pools return to the trends of old, before simulcasting, when one or two horses, usually the established favorites, might see gradual drops in the final moments before the gate opens: 3/1 goes to 5/2. People can deal with those changes but the wilder odds changes that have frustrated many players would be eliminated on-track.
Along with eliminating large odds swings, the lack of CAW money in these on-track pools would typically result in larger payouts for winning on-track horseplayers than what they would have received betting on their phones. Everyone enjoys winning a little more money, which would be attractive for on-track patrons.
These added payouts would occur because pari-mutuel pools pit one player against another, so the success of CAW has driven down payouts for everyone else. Pools that do not include such CAW players typically will pay more than the pools that do include them.
Because the separate on-track pools would focus on the wagers with the most potential for churn, added winnings are going to be sent back into the on-track pools, driving handle. While on-track handle accounted for just 6.2% of the pari-mutuel wagering on United States races in 2025, tracks and purses retain a higher percentage of that on-track handle than off-track handle on their races.
Because it generates more for tracks as a percentage, an improved total for on-track handle would have a bigger impact for tracks and purses than increasing other forms of handle. Beyond that, an increase in the number of on-track players allows tracks to collect more revenues from admissions, concessions, seating, etc.
Also, on-track players are more likely to churn that handle back to the track they're attending than on a different track when compared with a mobile player wagering on three different tracks. That is to say if an on-track player hits an exacta that pays $24 while its off-track payout is $18, the on-track player is likely to wager that extra $6 on the track he or she is attending as opposed to an off-site track. That will keep the churn on-site, generating added on-track handle.
From 2015-2025 total handle (not figuring in inflation) on United States racing improved 3.4% to $11.03 billion but on-track handle declined 39% to $683 million. That is to say the current structure is pulling wagering dollars away from the wagering form that generates the most money for tracks and purses: on-track wagering. Taking a different approach—this separate pool approach—would be trying something different as opposed to continuing a path that isn't working.
Tracks that took this separate pool approach also could consider lowering takeout on these wagers in an effort to provide an even better experience for horseplayers who face added expenses than off-track players: gas to get to the track, admission, possibly parking, programs, concessions, etc. It would be rewarding players for making that commitment with better payouts.
Keep in mind that because on-track wagering provides a larger benefit for tracks and purses, gradual improvements in this handle can make a big difference.
For now, I'm thinking that pools for other wagers (trifecta, pick 3, pick 4, superfecta, etc.) would continue to be combined, off-track and on-track, to ensure liquidity.
All of this would be an effort to improve on-track handle and generate more revenues for tracks and purses. Beyond those potential added revenues, on-track attendance is one of the best ways for fans to develop a love of horse racing. As many of our tracks have unveiled, or will soon unveil, major facility upgrades that should attract potential new fans, wouldn't it be something if they also were greeted with wagering options that give them a chance at some added winnings?
All of this would be with an eye toward long-term fan development that ultimately would increase interest in horse racing and then provide more money for tracks and purses.
