Just weeks after New York Racing Association (NYRA) disputed with, and ultimately resolved, a contract dispute with FanDuel, it finds itself in another battle with Churchill Downs (CDI).
The NYRA announced on Wednesday that it pulled all content from the TwinSpires app, owned by CDI, because of a contractual issue.
If the two sides don’t come to a resolution, NYRA content regarding the Saratoga Race Course summer schedule will not be available on the New York horse betting app.
NYRA involved in another contractual feud
It took the NYRA about a week to resolve its dispute with FanDuel. There’s no telling how long this newest conflict with CDI will take with both sides at odds.
The NYRA released the following statement on Wednesday, saying it was “seeking financial terms” from TwinSpires that fell in line with all other advance deposit wagering platforms offering NYRA content.
The racing association added that its 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.” As such, the NYRA added, it will continue to negotiate with TwinSpires “to increase funds flowing to the sport and its stakeholders in New York.”
David O’Rourke, president and CEO of the NYRA, said in a statement to Legal Sports Sport that the COVID-19 pandemic “supercharged the shift from brick and mortar wagering to the largest national ADWs, and fundamentally changed the economics of horse racing in New York State.
“Accordingly,” O’Rourke continued, “NYRA asked these ADWs to pay an additional source market fee of just 1 percent on wagers from New York, bringing that number in line or significantly lower than several other jurisdictions.
“Unlike their counterparts, CDI has refused to add this source market fee to an agreement struck in 2018. As a not-for-profit responsible for growing the sport while supporting our horsemen and backstretch community, this is untenable for horse racing in New York.”
Churchill Downs responds to NYRA’s statement
Bill Carstanjen, CEO of Churchill Downs, responded to NYRA’s behavior as of late.
“Following NYRA’s disturbing recent pattern of demanding significant new economics from ADWs for no additional value in return, NYRA has elected to terminate TwinSpires’ access to its Saratoga signal today,” Carstanjen said. “While we hope to resolve this dispute quickly and amicably, make no mistake that we will continue to advocate for and invest in our customers and this industry.
“NYRA’s reckless pattern reflects an increasingly misguided understanding of how to best serve the racing industry in New York. Their actions are bad for horse racing and negatively impact our fans.”
When could there be a resolution
Carstanjen hoped that the two sides could come together quickly to resolve the matter. However, it appears the two sides need to meet in the middle, at some point.
While it took around a week for NYRA and FanDuel to make an agreement, it doesn’t appear one will come before this weekend. A 13-race card at Saratoga’s Whitney Stakes is slated for the weekend, which is a big event for NYRA. Last year, it drew $39.6 million in handle and nearly 44,000 in-person spectators.
Either way, TwinSpires is an important horse betting app in New York. FanDuel accumulated $36.3 million in handle through June, with TwinSpires following at $16.3 million.
DraftKings’ DK Horse app, can expect to see a bump in handle due to the current dispute with Twnspires.
