This Saturday, millions will tune in for the Belmont Stakes at Saratoga Race Course in Upstate New York, marking the final leg of horse racing's Triple Crown. This year’s race features a rematch between Golden Tempo, the Kentucky Derby champion, and Renegade, the runner-up, making it one of the year's most anticipated events.
However, alongside the excitement of the race, the New York Racing Association (NYRA) has introduced new regulations aimed at mitigating the impact of computer-assisted wagering (CAW) on parimutuel odds.
CAW enables high-stakes bettors to place large bets simultaneously, utilizing advanced data models and algorithms to pinpoint optimal betting opportunities. This advantage has led to a decline in casual bettors, as the fluctuating odds significantly affect their chances of winning.
In response to concerns, NYRA announced on February 6 that CAW accounts would be restricted from placing batch wagers in all pools, including exotic bets, within one minute of post time. This follows a previous policy that limited high-volume betting in win pools two minutes before a race.
While wagering remains possible in the final minute, all bettors, including those using CAW, are restricted to a maximum of six bets per second. Additionally, CAW accounts cannot place win-only bets with two minutes or less to post and are barred from late pick-5 and pick-6 wagers.
Early indications suggest these changes are having a positive effect. From February 11 to May 25, the share of CAW in the overall handle at Aqueduct dropped to approximately 13%, down from around 22% in previous years. Furthermore, the impact of CAW on exacta prices has decreased by over 50%.
Jack Jeziorski, president of NYRA Content Management, noted that the CAW portion of the handle has significantly decreased during the Belmont Racing Festival at Saratoga, and he anticipates this trend will continue throughout the event.
Despite the implementation of these new guidelines coinciding with Aqueduct's winter meet, which saw a handle of $194.6 million—down nearly 24% from the previous year's $255.6 million—there are signs of improvement. The reduction in CAW access contributed to about 5% of this decline, according to the Daily Racing Form.
Additionally, Aqueduct's spring meet handle was reported at $82.2 million, reflecting a 19.3% decrease from the prior spring meet's total of $101.9 million. The average daily handle also saw a drop from $6.4 million last year to $5.5 million this year.
Jeziorski expressed optimism, stating, “We’re starting to see some indications that the retail market is responding to a better wagering experience.”