patrick cummings | Horse Racing Free Tips

Penny Breakage Increased Profits for Breeders’ Cup Players

Courtesy Thoroughbred Idea Foundation

Horseplayers at the 2022 Breeders' Cup enjoyed more than $545,000 in additional winnings from just the win, place and show pools thanks to the revised Kentucky law that pays pari-mutuel winnings down the penny.

“The two days of racing at Keeneland were sensational, but it was made that extra bit better thanks to penny breakage increasing payouts to players,” said Patrick Cummings, Executive Director of the Thoroughbred Idea Foundation (TIF).

In no race was the impact greater than the Breeders' Cup Classic won by Flightline.

Under the previous provision, and across nearly every American jurisdiction now other than Kentucky, Flightline would have paid $2.80, $2.80 and $2.20 for each $2 stake in the win, place and show pools, respectively. Instead, winning bettors received $2.88, $2.92 and $2.30 from those pools.

“The penny breakage law meant that a $2 bet across the board on Flightline returned a profit 16% larger than it would have under dime breakage,” Cummings said.

Altogether, the win, place and show pools from the Classic returned $240,000 more than with traditional rounding to the dime.

“The wins from Modern Games ($4.76) and Malathaat ($7.76) carried an extra boost too, accounting for an additional $131,000 from the win breakage alone going back to horseplayers.

“Hopefully winning players churned some of that into Rebel's Romance and Flightline.”

Overall, through just 64 days of Thoroughbred racing in Kentucky since the revised law went into effect, total breakage returned to horseplayers from the win, place and show pools is now more than $2.13 million.

Factoring in exotic pools as well as Standardbred racing in Kentucky, the total returned is higher.

“Pricing matters and racing wagering's overall takeout rates, already too high, are inflated by rounding down to the dime. Kentucky took a bold first step and other states and horsemen's groups should follow their lead and support such initiatives.

“Clinging to this antiquated practice is bad business and keeps racing wagering less competitive. We hope racing adopts sustainable practices to build its customer base and 'grow the pie' for all stakeholders.”

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Better Than $1.1M Returned to Bettors Via Penny Breakage

Through the conclusion of racing at Keeneland Sunday Oct. 15, more than $1.1 million has been returned to bettors since the introduction of penny breakage–rounding pari-mutuel winnings to the penny and not the dime–less than two months ago, according to a blog post from the Thoroughbred Idea Foundation (TIF).

TIF was a vocal supporter and champion of the penny breakage provision, the first of its kind in North America as part of broader legislation designed to standardize pari-mutuel taxation.

“The total is even higher than $1.1 million, that is just in the Thoroughbred win, place and show pools” said TIF Executive Director Patrick Cummings. “The breaks from exotic pools and Kentucky's Standardbred races add even more to the total.”

According to the post, in previous times, if an unrounded $1 return for a bet was $5.0918, under the rules of dime breakage, an even $5 would be returned to gamblers. Under the new rules, a winning bettor receives $5.09.

“Based on observations across Kentucky's tracks and discussions with tellers, there has been a short acclimation period for everyone to get used to it,” Cummings added. “But now that customers receive a 'full' dividend, not only is there no going back, but we start looking elsewhere wondering why others are not as progressive as Kentucky.

“It's been seamless for ADW bettors and overall, the feedback TIF has received has been entirely positive.”

The penny breakage provision was included in Kentucky House Bill 607 and was passed by both legislative branches in March before being signed into law the following month.

“The legislative support to accomplish this cannot be understated, led by Representative Adam Koenig in the House and Majority Leader Damon Thayer in the Senate,” Cummings said. “They mustered the backing of a vast majority of their colleagues to be the first in America to right a multi-generational wrong.

“The penny breakage provision was a small part of a much bigger bill and it is paying back horseplayers that bet Kentucky races, enabling them to churn more across the sport.”

The Keeneland-hosted Breeders' Cup Nov. 4 and 5 will include the enhanced payouts for the first time, as will next year's Kentucky Derby and Kentucky Oaks.

“Other states and tracks should want the same, following Kentucky's lead. But until then, Kentucky pays you more,” said Cummings.

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From the TIF: “Unscratched” Horse Second at Mountaineer

by the Thoroughbred Idea Foundation

In an unusual incident on Tuesday, Sept. 6, a horse reported to betting outlets as a scratch for 40 minutes prior to the start of a pick four sequence at Mountaineer Park was later unscratched after betting was closed and allowed to race.

Remarkably, all pick four bets placed were paid to the actual results.

“There are some similarities to the Modern Games (Ire) incident from last year's Breeders' Cup,” said TIF Executive Director Patrick Cummings, “and it proves that wagering rules are in desperate need of an update for the protection of customers.”

Click here to read the rest of this piece from the Thoroughbred Idea Foundation.

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From the TIF: New York Wagering Rules Ignored in Saratoga Pick 5 Fiasco

by the Thoroughbred Idea Foundation

The rule seems clear.

What is also clear is that the rule, as written, was ignored on Thursday, July 21 at Saratoga, though by which party is unknown at present.

“On behalf of aggrieved horseplayers who were impacted by the decision last Thursday, and all future players of multi-race bets in New York, we felt it necessary to seek clarification from the New York State Gaming Commission about the rules, why a seemingly arbitrary decision was made in the sequence and what customer expectations should be going forward in similar cases,” said TIF Executive Director Patrick Cummings.

Contacted on Monday morning, the Commission has yet to reply.

“Customers expect operators and regulators will follow the wagering rules as written,” said professional horseplayer and author Mike Maloney. “Horseplayers' confidence is paramount and there is little doubt that some of that was lost as a result of this incident.”

Horseplayer Eric Bialek, a final table participant in the 2020 National Horseplayers' Championship, was incredulous after the announcement.

“It defies every expectation of horseplayers for a race that was run a half hour earlier to subsequently be declared an all-win,” Bialek said. “Without a proper explanation from either the state or NYRA, speculation is all we have and that's incredibly insufficient.”

For the full story, please click here.

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