David O’Rourke, president and CEO of the New York Horse Racing Association (NYRA), initially set limits on computer-assisted wagering (CAW) participants in 2021, becoming the first horse racing executive to do so. This move restricted bulk winning bets with three minutes before race post time and banned them from Pick 6 and Late Pick 5 pools.
On Tuesday, O’Rourke revealed plans for stricter rules to take effect in early 2026. These new measures will cut off all computer-assisted bets on NYRA races one minute before post time. After that point, players using CAW will be limited to placing six bets per second, putting them on equal footing with retail players who use pre-deposit betting accounts.
O’Rourke shared this update during a panel at the University of Arizona Racetrack Industry Program’s World Symposium on Horse Racing in Tucson, moderated by Pat Cummings, who specializes in computer-assisted gambling.
The CAW sector, which benefits from substantial kickbacks through specialized services like Elite Turf Club (in which NYRA holds a minority stake), can place thousands of bets almost instantly based on algorithms predicting odds. This sector reportedly accounts for about 25% of the $10 billion annual pari-mutuel wagering market in the U.S.
Because CAW bets are made at the last moment and in large volumes, horse racing enthusiasts have voiced concerns about wild swings in odds on single-win pools and payouts on complicated bets such as Exactas, Trifectas, and Superfectas.
“There’s a race to be last,” O’Rourke noted, acknowledging that even mobile bettors tend to place their wagers as late as possible.
He emphasized that these changes are intended to improve the product quality for customers, adding, “Volatility is getting out of hand, so let’s put up guardrails.”
Economics professor and enthusiast Marshall Graham from Rhodes University observed that NYRA’s 2021 restrictions have significantly reduced late betting volatility in win pools. His research indicates that while the favorite changes in one out of five races generally in the final betting moments, at NYRA it happens only once every 25 races.
O’Rourke mentioned that they expected other tracks to follow NYRA’s 2021 footsteps, but only two tracks have adopted similar limits, with Del Mar removing single-win bets last summer after notable late odds drops, and Santa Anita following last fall.
Graham tracks so-called “major odds droppers” — horses that increase their share of the winning pool by 50% in the final betting cycle. NYRA’s Saratoga meet saw only one major odds dropper in two years, compared to significantly higher numbers at other major tracks.
Studies show that horses with large odds drops tend to yield higher returns on investment than those with minor drops and outperform horses whose odds rise late in betting.
“There’s no doubt that the CAW teams are smart and skilled,” Graham said, acknowledging the competitive and evolving nature of pari-mutuel wagering.
O’Rourke confirmed that the current bans on CAW win bets and Pick 6 or Late Pick 5 pools will continue, defining the new cutoff for other bets as one minute before race post time.
He also called on tote companies to speed up the processing of wagers and plans to monitor and analyze betting data as part of a multi-step approach.
Scott Dirty, president of Elite Turf Club and vice president of Los Angeles Turf Club (running Santa Anita), attended the panel and said the possibility of adopting similar NYRA guardrails would be considered by Santa Anita.
Fan Take: This news is crucial for horse racing fans because it aims to level the betting field and reduce extreme fluctuations caused by computer-assisted wagering, preserving the integrity and excitement of the sport. By introducing these limits, the sport could see more stable odds and fairer competition, ultimately enhancing the betting experience for all fans.
