Just days after pulling New York Racing Association (NYRA) content from its platform due to a contract dispute, FanDuel is back in the New York horse betting game.
Just before first post of the first race of its summer schedule, the NYRA announced that it reached a new contractual agreement with FanDuel and TVG “to the satisfaction of both parties.”
“We are pleased to have reached a resolution that will allow FanDuel/TVG customers across the country to wager on NYRA racing now and moving forward,” Tony Allevato, NYRA chief revenue officer, said in a press release.
“In accordance with the goals stated at the outset of this process, NYRA will be dedicating significant funding to support New York’s horsemen and strengthen the state’s thoroughbred racing ecosystem.”
FanDuel Racing, TVG reach new deal at 11th hour
As detailed in the announcement, and as part of the new deal, FanDuel and TVG will make “a sizable contribution” to the NYRA Foundation “to further the impact of non-profit organizations and service providers active in backstretch services, thoroughbred aftercare and more.”
“We are happy to have reached a multi-year agreement with the New York Racing Association and to extend our 24-year wagering partnership,” Andrew Moore, general manager of racing for FanDuel, said in a statement.
“We look forward to the Saratoga meet and beyond and to supporting the good work of the NYRA Foundation.”
The NYRA and FanDuel had failed to reach agreeable terms on a new deal after the previous contract expired on July 1. As a result, FanDuel’s parent company, Flutter Entertainment, pulled all NYRA content from FanDuel Racing and TVG.
Potential impact of ‘contractual impasse’ on NY horse betting
The “contractual impasse” resulted from a disagreement in revenue streams related to New York horse betting. And the new agreement allowed for the industry to avoid potential disaster.
When the NYRA confirmed that its content was pulled from FanDuel and TVG, it was also the same day the NYRA’s Belmont at Aqueduct season began its final weekend of races. The schedule included nine stakes races over the four-day holiday weekend, none of which horseplayers could wager on at FanDuel Racing and the TVG Horse Racing app.
The financial impact showed immediately, too. NYRA’s total handle for July 1-7 was $37.9 million, less than half of what it was a year ago when NYRA handled $76.3 million in wagers between July 3-9.
Patrick McKenna, vice president of communications for the NYRA, told Legal Sports Report that the removal of NYRA content from FanDuel and TVC “played a relatively minor role” in the racing association’s overall handle.
McKenna also said the week had fewer races and smaller field sizes due to its location at Aqueduct.
Those July 4 races are usually held at Belmont Park, which is currently under renovation. This year’s Belmont Derby (at Aqueduct) had 11 races and 66 horses compared to 12 races and 101 horses at Belmont Park in 2023.
Disagreement could have affected a full NYRA summer schedule
In all likelihood, the reduced card and FanDuel’s removal of NYRA content each contributed to a 50% decline in NYRA betting action in the first week of July. The longer the stalemate continues, the more we’ll know its impact.
The NYRA summer schedule began on Thursday, July 11, at Saratoga Race Track. The season features 71 stakes races across eight weeks and concludes on Labor Day, Sept. 2.
NYRA felt it deserved a greater cut from advance deposit wagering (ADW) operators.
“NYRA provides the racing content that fuels the profits of out-of-state ADWs like TVG/FanDuel,” said Allevato said in a statement prior to the new contract announcement.
“NYRA must prioritize the overall health of the sport and broader industry here in New York and we will continue negotiations to seek an equitable resolution so that our racing is widely available nationally.”
McKenna, shared a similar sentiment with Legal Sports Report, noting that the NYRA wanted to seek “fair compensation” for its racing content in the interests of:
- Supporting the state’s economy
- Growing the sport
- Creating opportunities for horsemen and breeders to compete for robust prizes year-round
How FanDuel viewed the contract negotiations
However, FanDuel said that the issue lies between NYRA and the state. The content agreements between NYRA and ADW operators usually include a host fee for operators to spread the content offered at NYRA tracks.
Some states, including New York (5%), add statutory tax payments to that total. Andrew Moore, general manager of FanDuel Racing, told LSR that has amounted to an additional $18 million per year.
“NYRA management has told us that they don’t feel they get a fair cut of that tax, and I don’t disagree,” Moore said. “But the state handles that distribution, not us. We have already been paying NYRA an additional percentage of New York residents’ play, but they want to increase that, and that’s the crux of the impasse.”
