NYRA Implements Penny Breakage: Enhancing Horse Racing Wager Payouts
NYRA Introduces Penny Breakage for Horse Racing Wagers
NYRA has announced the introduction of penny breakage for all wagers placed on NYRA races, replacing the tiered breakage model previously in place. Starting on September 1, New York will join Washington and Kentucky in eliminating breakage on races held within the state. This change aims to benefit horseplayers by ensuring that payouts are made to the penny, rather than rounding down as was done before.
The move to penny breakage is a horseplayer-friendly reform that will put more money back into the hands of bettors. Historically, breakage was most noticeable on smaller payoff wagers like win, place, and show bets, where bettors would receive slightly less than the calculated amount due to breakage. With the implementation of penny breakage, bettors will now receive the exact calculated amount for their winning bets on NYRA races.
The legislation authorizing penny breakage was signed into law by New York Gov. Kathy Hochul as part of the fiscal year 2026 New York State Budget. This budget included provisions that highlighted the significance of horse racing to New York's economy and culture. Along with penny breakage, the budget also allocated funding for equine safety research and simplified the racing and wagering tax code to support the sport's ongoing success.
In addition to the legislative changes, the New York State Gaming Commission (NYSGC) recently adopted rule changes to reduce the practice of coupling entries for horses with shared ownership. These new rules, set to take effect this fall, will increase the number of individual betting interests in over 150 NYRA races each year, providing more options for horseplayers to wager on.