Sports betting in New York never ceases to amaze us due to its great scope and expansion in the different disciplines and this time the legislators took it upon themselves to present a proposal in the state assembly to add horse racing tracks and off-track betting sites to the list of facilities that can accept in-person wagers on sporting events.
If passed, the goal of Assembly Bill 5923 (A5923) is to get sports bettors to become attracted to horse racing by adding the option. This could lead to increased handle for horse racing as well.
What the New Sports Betting Bill Allows
The bill, proposed by Assemblyman David Weprin, would necessitate a constitutional amendment to become law. It would give racetracks the same power over sports betting as municipal casinos. The language of the bill reads:
“Authorizes gambling on professional sporting events and athletic events sponsored by universities or colleges at betting facilities located at thoroughbred and harness racetracks operating in this state, in simulcast theaters operated by off-track betting corporations, and in any constitutionally authorized casino facility; provides that the proceeds of such gambling be applied exclusively to or in aid or support of education.”
Commercial and tribal casinos are currently the only sites in the state that can lawfully accept these kinds of bets. The proceeds that would be generated by the bill would be used to fund education in New York.
If the bill is passed, New York’s retail sports betting industry will experience its first expansion since 2019. While lawmakers expanded overall sports betting by allowing for online sportsbooks, retail operations remained unaffected.
Why Some Think the Move Won’t Attract New Bettors to the Track
In New York, horse racing betting is done through pari-mutuel pools. Meanwhile, bookies utilize fixed odds. The disparities in those systems contribute to the lack of crossover attraction. Pari-mutuel pools are a type of betting system used in horse racing, greyhound racing, and other sports. The term “pari-mutuel” comes from the French words “pari” (bet) and “mutuel” (mutual).
In this system, all bets placed on a particular event are pooled together, and the payout for winning bets is determined by dividing the total amount of money wagered (minus a commission or takeout for the house) among all the winning bets. This means that the odds and payouts are not fixed, but rather fluctuate based on the amount of money bet on each outcome.
Pari-mutuel betting is designed to create a level playing field for all bettors and to ensure that the odds are always fair since the odds are determined by the betting public’s opinions and actions, rather than by a bookmaker’s set odds. It also creates the potential for large payouts on longshot bets, since the odds can be inflated by heavy betting on the favorites.
Fixed odds is a type of betting system in which the odds of a particular event occurring are determined in advance and do not change once the bet is placed. This means that the potential payout for a winning bet is fixed at the time the bet is made, regardless of any changes in the odds or the amount of money bet on that outcome.
So, it’s not very clear how many people might go out of their way to stop at an Off-Track Betting site (OTB) or horse race track to place a bet. But if A5923 becomes law, some of the bigger tracks, like Belmont Park, could profit most from the opportunity. Bigger crowds mean a larger pool of bettors.
Will Sports Betting Be Added to New York Horse Race Tracks?
So far, there has been no outright opposition to the idea, indicating that the legislation is on the right track.
*Bookmakers Review will continue to monitor the bill’s movement.
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