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The New York Racing Association announced a ‘contractual impasse’ with FanDuel



The New York Racing Association announced a ‘contractual impasse’ with FanDuel

A recent contract dispute between two top horse betting entities is preventing gamblers from wagering on New York racing through FanDuel applications. That’s because the New York Racing Association (NYRA) announced a “contractual impasse” with FanDuel last Thursday. The Empire State’s highly popular summer racing session is set to begin this week. However, NYRA content will not be available through FanDuel Sportsbook, FanDuel Racing app, or TVG horse betting app. NYRA vice president of communications Patrick McKenna had this to say.

“NYRA’s mission is to conduct world-class racing for the benefit of the state’s economy while growing the sport and creating opportunities for horsemen and breeders to compete for robust purses throughout the year,” That is why [New York horse racing entities] are unified in seeking fair compensation for the racing content we provide to [advance-deposit wagering operators].”

How horse betting content deals are typically handled

In this specific case, the racetrack operator (NYRA) receives a host fee in exchange for allowing an ADW (FanDuel) to carry that racetrack’s content. Additionally, a source market fee is often included. It gets returned to the state racing industry where the bettor makes the wager and helps support purses and breeding. The obstacle standing between the NYRA and FanDuel is an additional percentage of the betting handle. The NYRA wants the handle that is from wagers made by New York residents. According to FanDuel, the NYRA has said they will not offer their products to the industry operator if they do not get the additional percentage of the betting handle. Bettors in New York can still bet on horseracing through other ADWs. However, they will not have access to any of FanDuel’s platforms for horseracing until this issue is resolved.

Horse racing has dipped in NY without the presence of FanDuel

On July 4, the NYRA pulled its horse betting content from FanDuel. This is a popular weekend for horseracing in New York with the Belmont at Aqueduct season being closed out. According to data from Horse Racing Nation, the NYRA’s betting handle dropped 50% in the weekend ending on July 7 compared to the same week in 2023. They handled $37.9 million from July 1 to July 7. From July 3 to July 9, 2023, they handled $76.3 million. FanDuel general manager of racing Andrew Moore says this standoff is hurting the NYRA more than it is the betting operator.

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