Horse Racing News: Impasse Between NYRA and FanDuel Disrupts Belmont Handle
In a significant development within the horse racing industry, the ongoing contract dispute between the New York Racing Association (NYRA) and FanDuel has led to a substantial drop in handle figures from the July 4 week.
According to the latest reports, Belmont at Aqueduct saw a 50.4% decrease in handle for the week ending July 7, 2023, compared to the previous week ending July 9, 2023. Both weeks included the July 4 holiday and the Belmont Derby with supporting stakes races the following Saturday.
This substantial decline in handle for one of the most prominent racing signals in North America contributed to an overall 8.3% decrease in total handle for the July 1-7 period compared to the same timeframe last year.
“We’ve seen a negative impact for sure, but due to our overall volume, not nearly as bad as NYRA has,” said FanDuel Racing general manager Andrew Moore. He emphasized that the situation is “bad for almost everyone, us, NYRA and fans.”
The root of the issue lies in NYRA’s demand for FanDuel to pay a larger percentage of its handle from New York state residents, in addition to the traditional host fee. This has led to an impasse, resulting in NYRA’s content being unavailable for viewing and wagering on FanDuel platforms.
“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,” Moore explained. “We already pay a 5% state origin tax to New York state based on New York residents’ play on horse racing, around $18 million a year.”
NYRA, on the other hand, maintains that it must prioritize the overall health of the sport and the broader industry in New York, seeking an equitable resolution to ensure its racing content is widely available nationally.
While the dispute continues, the impact on handle figures has been significant. Among the top nine signals by total handle last week, only Belmont at Aqueduct saw a decline on a per-race basis, suggesting a shift of money to other tracks available on FanDuel.
As the highly anticipated Saratoga race meet approaches, the absence of NYRA’s content on FanDuel is expected to be “very disruptive to their experience,” according to Moore. However, FanDuel is prepared for this eventuality, as they did not agree to the new terms proposed by NYRA.
The horse racing industry in New York is closely following this development, with horsemen groups such as the New York Thoroughbred Horsemen’s Association and the New York Thoroughbred Breeders voicing their support for NYRA’s efforts to secure fair compensation.
The outcome of this impasse will have significant implications for the sport of horse racing, both in New York and nationwide, as industry stakeholders navigate the evolving landscape of content distribution and revenue sharing.
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