There have been occasions when listening to California Horse Racing Board (CHRB) Vice Chairman Oscar Gonzales, I found myself doubting what I was hearing, much like Felix Unger from “The Odd Couple,” shaking my head and repeating, “Oscar, Oscar, Oscar.” However, that was not the case during the CHRB’s September meeting at Los Alamitos racetrack, where Gonzales expressed clear frustration with the answers given by Gene Chabrier, vice president of regulatory affairs and business development for Xpressbet—a company owned by Belinda Stronach that had applied to renew its California license for 2027-2028.
Gonzales questioned Chabrier about Xpressbet’s involvement with computer-assisted wagering (CAW) operations, which can instantly place thousands of bets linked directly to the tote system and receive sizable rebates. This group of around a dozen CAWs is responsible for more than 20% of the $10 billion annual U.S. wagering handle but has disrupted retail horseplayers by placing last-moment bets based on proprietary algorithms, significantly affecting odds and payouts.
During the exchange, Gonzales pushed Chabrier for updates on CAW activity and any measures related to cutoff times, referencing New York Racing Association’s (NYRA) policies. Chabrier’s vague responses and refusal to elaborate led Gonzales to cast the sole dissenting vote against renewing Xpressbet’s license. He later explained his frustration, emphasizing the need for the CHRB to genuinely support retail bettors and align with other jurisdictions in managing CAW issues.
Gonzales highlighted that many average bettors feel disadvantaged by CAWs and stressed the necessity for fairness and balance between large and small players. New York has taken a pioneering approach by setting a two-minute cutoff for CAW win bets in 2021 and a one-minute cutoff for all other pools earlier this year, also banning CAW participation in certain multi-race wagers. California tracks like Del Mar and Santa Anita have followed with restrictions on win bets but haven’t yet imposed limits on CAW bets inside the final minute.
Gonzales urged the CHRB to obtain detailed information about CAW operations to keep pace with this evolving challenge. While it’s early to declare NYRA’s policy a total success, initial results show a decline in CAW wagering but an increase in non-CAW handle, suggesting retail bettors are regaining confidence. Despite this, some casino tracks funded heavily by slot revenue have been slow to adopt similar restrictions—a contrast to California, which relies solely on pari-mutuel betting to fund purses.
If NYRA continues to demonstrate that curbing CAW activity boosts retail wagering, California has a strong case to follow suit. It’s time for the state to take a leadership role and adopt robust policies addressing CAW impact, ensuring fairness and sustainability in the sport.
That’s my take from the eighth pole.
Fan Take: This issue strikes at the heart of fairness in horse racing wagering—retail bettors are the lifeblood of the sport and must feel the playing field isn’t tilted by sophisticated CAW operations. By pushing for transparency and sensible limits, the CHRB could restore trust and encourage wider participation, which is vital for the future health of horse racing.
Source: sports.yahoo.com
