Contract Dispute Halts NYRA Races on FanDuel Platforms
A contractual disagreement between the New York Racing Association (NYRA) and FanDuel has resulted in a blockage that prevents horseplayers nationwide from wagering on New York racing through FanDuel’s platforms, including FanDuel Sportsbook, FanDuel Racing app, and the TVG horse betting app.
Financial Terms at the Heart of the Dispute
The crux of the dispute centers around the financial terms under which NYRA content is carried on FanDuel’s betting platforms. Typically, such arrangements involve a host fee paid by the advance-deposit wagering (ADW) operator (FanDuel in this case) to the racetrack operator (NYRA), allowing the former to offer betting options on races at the latter’s tracks. Additionally, a source market fee is commonly returned to the state’s racing industry, supporting purses and breeding programs.
However, NYRA is now seeking an additional percentage of the handle generated from bets made by New York State residents on any content, not just NYRA races. Andrew Moore, General Manager of FanDuel Racing, explained that while NYRA has traditionally agreed to host-fee agreements for content, they now demand a share of all New York residents’ betting, regardless of the content.
Financial Contributions and NYRA’s Stance
Moore noted that FanDuel already contributes significantly to New York through statutory tax payments, which amount to approximately $18 million per year, indicating that New York residents wager around $360 million annually on horse racing through FanDuel.
Despite this, NYRA contends that they are not receiving a fair share of these tax revenues, which are distributed by the state, not FanDuel.
While the disagreement has led to NYRA races being unavailable on FanDuel’s platforms, horseplayers in New York and other states can still access NYRA races through various other ADW platforms that have not been affected by this dispute.
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