NY rake gets extra rollback after earlier opportunity missed

[Kasept]

NYRA LOWERS TAKEOUT ON EXOTICS

OZONE PARK, N.Y. – The New York Racing Association, Inc. (NYRA) has announced that takeout on Trifecta, Superfecta, Grand Slam, Pick 3, Pick 4, and Pick 6 wagers will be lowered by two percentage points to correct an unintentional oversight by which NYRA’s takeout for exotic wagers was one point above the statutory limit.

When NYRA and New York State agreed to a new Franchise Agreement in September 2008, part of the arrangement called for a one percent across-the-board increase in takeout on NYRA wagers. That legislation increased the takeout on exotic bets to 26 percent and superceded the Racing Law statute which caps takeout on exotics at 25 percent. When this provision expired in September 2010, the takeout on exotics should have reverted to 25 percent to conform to the pre-existing statute, but this change was unintentionally overlooked due to the complexity of the takeout provisions in the Racing Law.

The lower takeout on exotics was proposed by NYRA to provide an equitable and immediate remedy to its customers. The changes which were approved at today’s meeting of the New York State Racing and Wagering Board further decrease the takeout on Trifecta, Superfecta, Grand Slam, Pick 3, Pick 4, and Pick 6 wagers by one point from pre-September 2008 levels. They will go into effect for the races on Wednesday, December 28 at Aqueduct Racetrack. NYRA takeout rates are published daily in all of NYRA’s programs and in the Daily Racing Form.

NYRA will work with the Board to implement the conditions established in today’s meeting and to address reimbursement for NYRA Rewards customers, holders of uncashed tickets, and other customers who can be identified through IRS reporting, within the time frames directed by the Board.

With the approved changes, NYRA’s takeout menu is as follows:

• 15 percent – Pick 6 (non carryover pools)
• 16 percent – Win, Place, Show
• 18.5 percent – Exacta, Quinella, Daily Double
• 24 percent – Trifecta, Superfecta, Grand Slam, Pick 3, Pick 4, Pick 6 (carryover pools)

[TheSpyder]

So are they paying back all the extra money they squeezed out illegally....or by mistake?

[wild barry]

Does this mean if one plays through a ADW (twin spires) where wagering records are saved that the customer will be reimbursed on winning wagers?

[Kasept]

Originally Posted by wild barry

Does this mean if one plays through a ADW (twin spires) where wagering records are saved that the customer will be reimbursed on winning wagers?

That appears to be something they're going to try to do.

[pointman]

The cuts are good news, but the explanation appears absurd. What is complex about changing the rate back on a date certain? Have they heard of calendaring devices?

No matter what, those who cashed at the window that didn't get the IRS's attention are screwed.

[RockHardTen1985]

I read the entire thing and Im confused. I mostly only play pick 3's and 4's. Should I look out for some sort of refund in my capitalotb.com account? What about all the bets made with cash in branches? Just screwed?

[King Glorious]

At least they got that cheating Dutrow. Now we know how they are paying the court costs.

[Kasept]

Here's Matt Hegarty's thorough piece: http://www.drf.com/print/news/nyra-o...-correct-error


For those piling on NYRA, the NYS RWB completely forgot about the sunsetting of the increase as well and supposed 'Franchise Oversight Board' likely had no idea about anything related to this:

And not even the racing board was aware of the error, since it signed off on documents throughout the past 15 months that described the superexotic rate at 26 percent. Under New York's laws, the board is required to review and approve NYRA's business plan every year, and the plan that was approved for 2012 listed the superexotic takeout rate at 26 percent rate. The board also approves NYRA's simulcast contracts, which list the takeout rates applied to all wagers.


As soon as this came out yesterday, in the back of my mind I recalled the 1% provision involved in the NYC OTB wrangling between Bloomberg and Albany. But like every other member of the media I had forgotten about it and the 2 year rollback timestamp. From Hegarty's 2008 article on the increase which came at the time of the NYC OTB crisis involving Bloomberg dumping it into Albany's lap:

The provision is one of two takeout increases contained in the bill, which passed Monday night. The other increases the takeout by 1 percent on all wagers made on races run at the three tracks operated by the New York Racing Association. Both takeout increases will take effect 90 days after the bill is passed, or just shortly after NYRA wraps up its upstate meet at Saratoga Race Course. The provisions sunset after two years.


Everyone should recall that NYRA vehemently argued against that Albany-generated 1% and increased rebates to NYRA Rewards members to try and offset it. The bottom line here is that the extra 1% decrease to 24% being instituted will stick around longer than the 15 months when it could have been 25%.

[Danzig]

Originally Posted by wild barry

Does this mean if one plays through a ADW (twin spires) where wagering records are saved that the customer will be reimbursed on winning wagers?

i'd have to think many would rather get a refund on the losing ones.

[parsixfarms]

Originally Posted by Kasept

Here's Matt Hegarty's thorough piece: http://www.drf.com/print/news/nyra-o...-correct-errorEveryone should recall that NYRA vehemently argued against that Albany-generated 1% and increased rebates to NYRA Rewards members to try and offset it. The bottom line here is that the extra 1% decrease to 24% being instituted will stick around longer than the 15 months when it could have been 25%.

I appreciate that NYRA argued against the increase when it was instituted. As a proponent of lower takeout generally (a stance for which NYRA deserves to be applauded), all the more reason to assume that they would have calendered the date on which the takeout increase was supposed to sunset.

[Kasept]

Originally Posted by parsixfarms

I appreciate that NYRA argued against the increase when it was instituted. As a proponent of lower takeout generally (a stance for which NYRA deserves to be applauded), all the more reason to assume that they would have calendered the date on which the takeout increase was supposed to sunset.

No doubt.

[Kasept]

Originally Posted by Cardus

I tend to forget that you are a member of the media.

Yeah.. Those inclined to attack are attacking RWB, the Oversight Board & NYRA, but where was a single member of the racing media (including me) or the horseplayer watchdog crowd to ask about when the rollback was going to happen at an appropriate point?

[cmorioles]

Originally Posted by Kasept

Yeah.. Those inclined to attack are attacking RWB, the Oversight Board & NYRA, but where was a single member of the racing media (including me) or the horseplayer watchdog crowd to ask about when the rollback was going to happen at an appropriate point?

There were a few that asked about it at the time on another message board. Apparently emails were sent but were ignored. This thing is a big cluster of incompetence. Surely you aren't excusing those that should have caught it because nobody else did either.

[Cannon Shell]

Originally Posted by RockHardTen1985

I read the entire thing and Im confused. I mostly only play pick 3's and 4's. Should I look out for some sort of refund in my capitalotb.com account? What about all the bets made with cash in branches? Just screwed?

Only people who won got screwed

[RockHardTen1985]

Originally Posted by Cannon Shell

Only people who won got screwed

I have hit a lot of NYRA bets in my account and in cash since the date stated.

[Cannon Shell]

Originally Posted by RockHardTen1985

I have hit a lot of NYRA bets in my account and in cash since the date stated.

Show wagers werent affected

[Kasept]

Originally Posted by cmorioles

There were a few that asked about it at the time on another message board. Apparently emails were sent but were ignored. This thing is a big cluster of incompetence. Surely you aren't excusing those that should have caught it because nobody else did either.

No. Not excusing. Just easy to recognize how it was overlooked given the variety of interested parties that overlooked it.

[pmacdaddy]

It happened. The "overlooked due to the complexity of the takeout provisions in the Racing Law" part is kind of lame.

You are talking about 4% revenue difference on a big portion of the business. Should have been on a lot of parties radar.

[pba1817]

I am pretty sure if they were taking out 1% too low, that this would have been caught rather quickly....

[OTM Al]

Originally Posted by pmacdaddy

It happened. The "overlooked due to the complexity of the takeout provisions in the Racing Law" part is kind of lame.

You are talking about 4% revenue difference on a big portion of the business. Should have been on a lot of parties radar.

Gee, especially since increases in takeout are supposed to reduce profits. So you would think that if their revenues were down by 4% they would have noticed their take was too high....