Unfair Advantage: Class-Action Lawsuit Targets Horse Racing Industry Collusion in Betting Manipulation
A national law firm has initiated a class-action lawsuit against key players in the American horse racing industry, alleging collusion to manipulate betting systems through computer-assisted wagering (CAW) platforms. The lawsuit targets prominent entities such as the Stronach Group, Churchill Downs, the New York Racing Association (NYRA), AmTote International, and United Tote, among others. These defendants are accused of providing unfair advantages to CAW platforms used by professional betting teams, leading to significant financial gains and disadvantaging regular bettors.
CAW platforms enable strategic and predictive betting based on computer analysis, allowing users to place bets moments before races start to maximize profits. These platforms, including Elite Turf Club and Velocity, are alleged to receive preferential treatment, lower fees, and rebates not available to other bettors. The lawsuit highlights the secretive nature of CAW platform users and their operations, raising concerns about the lack of transparency in the horse racing betting industry.
The lawsuit alleges violations of the Racketeer Influenced and Corrupt Organizations Act, accusing the defendants of manipulating betting pools to benefit CAW platforms at the expense of traditional bettors. Unlike traditional sportsbooks, horse racing odds are determined by the bettors themselves in a pari-mutuel betting system. The defendants are accused of exploiting this system to create last-second odds drops that undermine the value for regular bettors while favoring CAW platform users.
The plaintiff in the case, Ryan Dickey, represents individuals across the United States who placed wagers in CAW-impacted horse race betting pools without using a CAW account. The lawsuit seeks compensatory damages for actual losses and expenses, as well as treble damages for egregious misconduct. The legal action aims to address the alleged unfair practices that have disadvantaged average public bettors in the horse racing industry.
In a statement regarding the lawsuit, Hagen Bergman's founder and managing partner, Steve Berman, emphasized the impact of the alleged scheme on regular bettors, describing it as a modern reverse-Robinhood scenario. The lawsuit aims to hold accountable those involved in the manipulation of betting pools and to seek justice for individuals who have been affected by the unfair practices in the horse racing industry.