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The New York Racing Association (NYRA) is advocating for horse racing to be included alongside other sports like football and hockey on the state’s online sportsbooks.
At a recent Assembly hearing, NYRA representatives shared their vision with lawmakers, highlighting that incorporating fixed-odds betting on horse races could attract a new audience of bettors who usually focus on major sports. This move comes as the horse racing industry faces rising costs and stiff competition.
$30 million in fresh taxes projected
NYRA officials informed lawmakers that placing horse racing alongside popular sports on mobile betting platforms could attract bettors primarily interested in football, basketball, or hockey.
They highlighted that allowing sportsbooks to offer fixed-odds betting on horse races could generate nearly $30 million in new tax revenue for the state. This initiative would also provide additional funding for breeders, owners, and others in the racing industry who are currently facing increasing operational costs.
Plans already in motion, but progress slow
Attempts have already been made, with State Senator Joseph Addabbo Jr. introducing a bill aimed at making this type of betting a reality. However, the progress of this bill has stalled since it came into life last summer.
Addabbo Jr.’s legislation stipulates that any sportsbook wishing to provide fixed-odds racing must first negotiate an agreement with a racing group like NYRA. Revenue from such an agreement would benefit New York’s thoroughbred and harness racing sectors.
NYRA officials emphasized the significant market potential, noting that mobile sportsbooks in New York handle over half a billion dollars in fixed-odds wagers each week.
In contrast, nationwide betting on thoroughbred races totaled less than $900 million for the entire month of October. They pointed out that despite collaborations with major operators like Caesars, current state laws hinder these sportsbook apps from accepting bets on races, limiting opportunities for the racing industry.
Billions in contributions and thousands of jobs at stake
The recent hearing highlighted the financial challenges facing the racing industry. NYRA’s racing operations head, Andrew Offerman, shared with lawmakers how New York’s prize money structure has stagnated over nearly a decade.
He compared it to Kentucky, which has experienced a significant boost in purses after legalizing historic horse racing machines, placing New York at a disadvantage. Offerman also noted that these developments have transformed Kentucky’s racing landscape, increasing pressure on New York tracks to compete effectively.
Assemblymember Carrie Woerner and other lawmakers acknowledged the importance of the racing industry to the state’s economy, pointing out a report that indicated the industry contributes billions and supports tens of thousands of jobs.
She stressed that as operating costs rise, the racing sector faces fierce competition from other gambling and entertainment options, which adds to its struggles.
While a few states have legalized fixed odds horse wagering, its adoption has been slow. Despite this, NYRA officials are optimistic that tapping into the expansive online sports betting audience could attract new fans to horse racing. A rep emphasized to the committee that to remain relevant in a rapidly changing gambling environment, racing must boost its visibility and adapt to new trends.
Source: Gambling News
