While the forecast for legalizing online casino during New York’s current state legislative session is not particularly sunny, advocates of fixed odds betting on horse racing are singing a brighter tune despite coming up well short of the finish line in years past.
Unlike horse betting’s traditional parimutuel system, where odds on thoroughbreds and standardbreds can fluctuate right up until a race starts and the house take a predetermined cut of the pool, fixed odds are similar to sports betting in that your price on a given wager is locked in the moment you place the bet. In the same vein, the current legislation states that fixed-odds wagering would be offered through sportsbooks like FanDuel and Caesars in New York, either through mobile betting apps or at kiosks located at racetracks and other sporting venues.
Senator Joe Addabbo and Assemblyman Gary Pretlow are the sponsors in their respective chambers of bills concerning both iCasino and fixed odds. While horsemen’s associations like the one at Finger Lakes have thus far remained skeptical but neutral on fixed odds legislation, which was reintroduced earlier this month, key stakeholders like the New York Racing Association are strongly backing it.
“Allowing horse racing content on mobile sports wagering platforms would generate a billion dollars in untapped gaming revenue for New York State, attract new fans to horse racing, and deepen the sport’s overall economic impact,” said NYRA Vice President of Communications Pat McKenna in a statement issued to US Bets. “The legislation sponsored by Senator Addabbo and Assemblyman Pretlow presents an enormous opportunity for horse racing to share in the rapid growth and unrivaled success of New York State’s mobile sports wagering marketplace. It would be a big win for taxpayers in New York and for the future of horse racing in the Empire State.”
McKenna also pointed to Gov. Kathy Hochul’s enthusiasm for the tax windfall New York has reaped from sports wagering since it became legal in the state two years ago. In a recent press release, she spoke glowingly of the legal market, saying, “I look forward to this third year of our successful gaming policies that deliver top tier mobile sports wagering experiences. We will continue to generate revenue that will enrich the lives of New Yorkers, all with important safeguards in place to help those who need it.”
As for Sen. Addabbo, he told US Bets, “The horse racing industry is responsible for 19,000 jobs and about $3 billion every year in New York, so it’s a significant industry. What aspects of horse racing can we do to benefit New Yorkers and improve the industry? I think fixed odds is part of that. Can it be implemented? I think it can, but this is what the budget is all about — the details.”
Tweaks may be necessary — and welcome
So, about those details …
Michele Fischer is vice president of SIS Content Services, one of a handful of companies worldwide that has the racetrack agreements and data apparatus in place to offer sportsbooks a one-stop-shop fixed odds solution. Her company is in the process of getting fixed odds up and running in Colorado, which would become just the second state (after New Jersey) to offer the parimutuel alternative.
Given the very nature of its business, SIS is clearly supportive of fixed odds, and Fischer told US Bets, “I commend Senator Addabbo for taking action to expand the distribution and awareness of horse racing.” However, she added that her company “has not provided input or been involved in” the crafting of New York’s legislation.
Fischer has seen Addabbo’s bill and has some concerns.
“Looking at the bill, it is unclear where we fit in as a supplier,” she said. “It appears that horse racing content has to be sold through a New York racetrack by breed type to an operator. Unlike parimutuel simulcasting, in the fixed odds market, companies like SIS provide a comprehensive package to the betting operators that includes streaming video channels, pre-race and race-day data, odds, pricing, and feeds. Usually, the content portfolio is exclusive to the supplier allowing one integration and a single commercial agreement for hundreds of tracks. To make this worthwhile to a sportsbook, there has to be enough volume of content for 24/7 action and the commercial model must be competitive compared to other sports products.”
She continued, “What we don’t want in New York is a New Jersey model, which is complex and not taxed. There’s no horse racing live on any sportsbook there. The whole idea of fixed-odds horse racing is not to replace parimutuel wagering, it’s to get horse racing on sportsbooks to new people — anyone out there who might discover horse racing during a time when other sports are not live. Putting it where a horseplayer already is is just going to divide the money you’re already getting.”
Thankfully, Sen. Addabbo seems open to input in the name of refinement and improvement.
“Whether it’s fixed odds, tournaments, prop bets — these are the things we want to talk about during the budget process,” he said. “This is what the budget process is about, and I welcome it.”
