Is computer-assisted wagering fair to everyday bettors

Computer-assisted wagering (CAW) in thoroughbred racing employs algorithms and software to analyze data on horses, jockeys, and races for strategic bets, typically placed by large teams or syndicates. CAW predicts odds and detects betting inefficiencies, facilitating automated betting across numerous races and tracks. These systems often place real-time wagers, sometimes just seconds before a race, disadvantaging everyday bettors who primarily contribute to the betting pools.

Track operators exploit the system for financial gain. Tracks like Del Mar direct everyday bettors to computer-assisted wagering (CAW) teams, which leverage the pools created by these bettors for profit and negotiate deals with the tracks. Major players like The Stronach Group, New York Racing Association, and Churchill Downs own the gambling platforms used by these teams.

Pat Cummings, executive director of the National Thoroughbred Alliance, explained that CAWs use advanced systems and algorithms to rapidly analyze data and place bets just before races, enabling batch betting. Average bettors are targeted by CAWs for profit; however, the CAW model depends on average bettors sustaining the betting pool.

CAW play has increased, but standard wagering has not, dropping by two-thirds in two decades. Cummings noted that high-frequency bettors make up one third of US thoroughbred racing betting. He found about 10 to 12 major players use this strategy, accounting for $2bn to $3bn of the $11.6bn wagered last year. Many believe these estimates are conservative. Average bettors feel CAWs may also gain internal pool information, suggesting potential violations of gaming laws warrant investigation.