The concept of pari-mutuel wagering involves every bettor’s money going into a pool. Lately, though, the big topic of conversation in horse racing hasn’t been human money, but computer money.
Computer-assisted wagering groups (or CAWs) have popped up prominently in recent years. The groups behind them use algorithms to dictate wagering strategies, and thanks to their volume of handle, many have deals with tracks that allow them to input those wagers at the last possible second before a race begins.
Due to the significant value of CAW groups’ wagers, many tracks have not curbed their activity. Furthermore, the list of CAW group owners includes a few organizations that run these very venues.
CAW activity took center stage on Kentucky Derby Day, when T O Elvis went postward in the Grade 1 Churchill Downs Stakes. He entered the gate at odds of 11-1. Mid-race, though, CAW activity was reflected in the win pool. His odds dropped to 5-1, and he won by open lengths. As a result, over the course of the race, the amount that bettors expected to win on the horse dropped by about half.
The New York Racing Association, however, has implemented policies designed to curb odds drops like these. Beginning in February of this year, CAW players have been locked out of the win pool with two minutes to post, allowing human bettors opportunities to see where that money is going and, if necessary, adjust or cancel wagers that are no longer as attractive.
“This policy reflects the importance of modernizing pari-mutuel wagering to address the technology-driven evolution of high-speed wagering,” NYRA President and CEO David O’Rourke said in a January press release announcing the regulation. “Reducing odds volatility will increase pricing transparency and improve the wagering experience for horseplayers in New York and across the country.”
According to O’Rourke, who participated in a media conference call in late May on the subject, the CAW share of NYRA’s handle has declined significantly due to this regulation, from just over 20 percent to 12 or 13 percent.
“There is an economic cost,” he explained on the call, “but what we’re trying to do here is excise out that handle that is causing the product to deteriorate in terms of the public’s view of quality. This is about the player—the customer experience.”
The numbers for this year’s Belmont Stakes Racing Festival told a similar story. According to data provided by NYRA and published in Horse Racing Nation, CAW groups wagered nearly $18 million less than they did in 2025. However, non-CAW handle increased by nearly 13 percent, with online platforms such as NYRA Bets, TwinSpires, and 1/ST Bet reporting significant year-over-year gains.
On the conference call, O’Rourke added that no CAW teams have stopped playing races in New York. This includes Elite Turf Club, which NYRA partially owns in conjunction with 1/ST Racing.
While CAW groups will continue to be part of the horse racing landscape, bettors can at least expect less volatility in win wagering at Saratoga Race Course going into the summer meet.
