The New York Racing Association wants to bring horse racing into the new millennium by mirroring the fixed odds seen in other sports, which have become so familiar to this new generation of bettors.
Welcome to the Present
Betting on horse racing is the province of older gamblers, but the New York Racing Association (NYRA) wants to make it more attractive for the younger generation by changing the way the odds are decided.
Push to Replace Parimutuel System
As of this writing, New York tracks, mobile sportsbooks, and OTBs use a parimutuel system, where the final odds are not determined until the race goes off. However, the NYRA would like that changed to reflect the fixed odds commonly seen at sportsbooks, where the bettor locks in a price from the moment the bet is made.
Many horse racing insiders believe the parimutuel system is confusing for younger bettors who are accustomed to locking in a price versus waiting until the event goes live before knowing their specific odds. This can lead to this critical demographic turning off horse racing entirely instead of embracing what was once known as the Sport of Kings.
Jeffrey Cannizzo, vice president of government affairs for the NYRA, testified before the state Assembly committee last week, stating, “We see this as an opportunity to drive new revenue to our industry, to the state, and down to the shareholders and stakeholders, which are horsemen, breeders, and owners.”
Industry Challenges Amid Growing Gambling Competition
The horse racing industry has faced many obstacles, particularly with much more competition for one’s gambling dollar between online sportsbooks and casinos cropping up all over the state, including the three downstate casino licenses about to be awarded.
Yet, it continues to contribute to the economy and is an industry worth growing and not abandoning, according to Assemblywoman Carrie Woerner, chair of the chamber’s Standing Committee on Racing and Wagering. Woerner cited a 2023 study that found the horse racing industry generated $7 billion in economic impact and was responsible for more than 52,300 jobs in New York.
“Despite these strong foundations, the industry faces significant challenges,” said Woerner, whose district includes the NYRA-operated Saratoga Race Course. “Cost pressures in terms of training, labor, operations, and regulatory compliance are high, and competition from other forms of gaming and entertainment is increasing.”
Granting Sportsbook Access
Passing fixed odds racing is just the start; the key is adding horse racing to New York sportsbooks’ menus. Being allowed to operate on the same wildly popular sports betting apps as football, basketball, baseball, and hockey would be an enormous boon to the horse racing industry, but to do that, the format of the odds must be commensurate with those moneylines being offered on other sports.
There is no comparison in the popularity between sports betting and horse race wagering, considering that, for the week that ended November 16th, $565 million was bet on sports in New York, compared to $868 million that was wagered on thoroughbred horse racing throughout the United States in all of October.
“New York is actually a leader in mobile sports wagering,” Cannizzo said Friday. “We see this as a huge opportunity to provide them our content on their platforms.”
Senator Joseph P. Addabbo Jr.’s bill, S8433, is a fixed-odds horse racing bill that has been languishing in the legislature since the summer. Stakeholders are hopeful it will now gain traction after the state Assembly committee hearing last week.
