A significant contract dispute between FanDuel and the New York Racing Association (NYRA) has been resolved just in time for the start of Saratoga’s highly anticipated summer racing season. The disagreement, which had halted horse betting on FanDuel’s platforms, ended Thursday, ensuring that fans nationwide can once again place wagers on New York racing events.
Initial dispute:
The conflict began when?NYRA?announced a contractual impasse with?FanDuel, causing NYRA content to be unavailable on the?FanDuel Sportsbook,?FanDuel Racing app, and?TVG horse betting app. With the popular summer racing season approaching, the timing of this dispute was particularly critical.
“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,”?said?Patrick McKenna, NYRA’s vice president of communications. He emphasized the importance of fair compensation for the racing content provided to advance-deposit wagering (ADW) operators like FanDuel.
The primary issue centered around the additional percentage of handle NYRA wanted from bets made by New York State residents. Traditionally, NYRA agreements involved?host fees for content only. However, NYRA sought a share of New York residents’ play regardless of the content bet on, which FanDuel initially resisted.
Andrew Moore, general manager of FanDuel Racing, explained the situation:?“NYRA agreements have traditionally been host-fee agreements for content only, but recently they also want a share of New York residents’ play from us regardless of what content those residents bet on. They’ve basically said that if we don’t pay that, then we don’t get access to NYRA content.”
Impact on betting and revenue:
The dispute had a noticeable impact on betting volumes. NYRA pulled its content from FanDuel on July 4, a holiday weekend popular for racing. This led to a significant drop in NYRA’s handle, which fell?more than 50%?compared to the same week the previous year. NYRA handled?$37.9 million?between July 1 and July 7, down from?$76.3 million?in the comparable period last year.
Moore acknowledged the negative impact on both parties:?“We’ve seen a negative impact for sure, but due to our overall volume, not nearly as bad as NYRA has. This situation is bad for almost everyone, us, NYRA, and fans.”
NYRA, however, attributed the decline to other factors, such as smaller field sizes?and?fewer races.?“NYRA’s handle numbers from last week were impacted by a significant decrease in field size and a reduction in the total number of races carded compared with the July 4 weekend in 2023,”?McKenna said, according to a source.
As BloodHorse reports, on July 11, NYRA announced that a new agreement?had been reached with FanDuel, allowing pari-mutuel wagering on the summer meet at?Saratoga Race Course?to resume on TVG and FanDuel platforms.
“We are pleased to have reached a resolution that will allow FanDuel/TVG customers across the country to wager on NYRA racing now and moving forward,”?said?Tony Allevato, NYRA’s chief revenue officer. The agreement includes a substantial contribution from FanDuel to the NYRA Foundation, supporting backstretch services, Thoroughbred aftercare, and other related causes.
Andrew Moore expressed satisfaction with the outcome:?“We are happy to have reached a multi-year agreement with the New York Racing Association and to extend our 24-year wagering partnership. We look forward to the Saratoga meet and beyond and to supporting the good work of the NYRA Foundation.”
The 2024 summer meet at Saratoga Race Course, one of NYRA’s top horse betting brands alongside the Belmont Stakes, begins Thursday and runs through September 2. The?40-day meet?will feature 17 Grade 1 flat races and two Grade 1 steeplechase races, with 71 stakes offering a total of?$20.75 million?in purses. This resolution ensures that fans can once again enjoy wagering on these prestigious events through FanDuel and TVG platforms, maintaining the excitement and tradition of New York racing.