United Tote Fined for Penny Breakage Miscalculations

After failing to properly calculate Kentucky's newly implemented penny breakage at two Standardbred race meets in July, the totalizator services provider United Tote Company has been fined and ordered to “seed” a future exotic wagering pool with $4,445.77, which equals the amount that the Kentucky Horse Racing Commission (KHRC) determined should have been paid out to bettors had the calculations been correct.

According to an administrative ruling dated Sept. 12 and signed by Waqas Ahmed, the KHRC's director of pari-mutuel wagering and compliance, United Tote “provided improper totalizator services” on races conducted at Oak Grove (July 17-19) and The Red Mile (July 31).

The first of those violations occurred two days after Kentucky first rolled out its mandate that dime breakage be replaced by bettor-friendly penny breakage.

According to the ruling, the mistakes also occurred despite the fact that United Tote “completed pre-meet totalizator tests with KHRC personnel using the correct breaks.”

The ruling stated that on July 20, United Tote submitted an Oak Grove incident report “showing that prices were calculated with ten-cent breaks instead of the required penny breaks, with a $1,916.56 liability owed to the public.”

Then on July 31, a separate incident report from The Red Mile stated “that prices were calculated with ten-cent breaks instead of the required penny breaks” but only for “remote sources outside of Kentucky that wagered on Race 2 onward on that date.” The liability owed to the public was $2.529.21, according to the KHRC.

According to the ruling, “ordinarily, the fine would total $1,000 for each day of violation; however, due to mitigating factors, that amount is reduced to $500 from July 17 through July 19  and July 31. According to the KHRC, those factors were:

“Oak Grove Racetrack has been conducting pari-mutuel wagering before the new breakage requirement that went into effect on July 14. The above events only impact the last three race dates of this track's 2022 race meet.

“[United Tote] calculated and paid the correct prices for all Kentucky sources for the wagering conducted on Red Mile Racetrack's meet. However, the penny break was not applied to Race 2 onward for all other sources due to a software defect.

“The violations were not intentional [and] the [United Tote] fully cooperated with the KHRC on determining the liability due,” the ruling stated.

Bettors will theoretically get repaid through the mandated pool seeding, which must occur “at a harness racetrack in the calendar year 2022 [with] all details…approved by the KHRC.”

In addition, United Tote “must submit its process for complying with regulatory requirements related to providing totalizator services,” the ruling stated.

It was unclear at deadline for this story whether United Tote is appealing the penalties.

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Churchill, FanDuel Enter Into Agreement

Edited Press Release

Churchill Downs Incorporated has entered into a multi-year agreement with FanDuel Group involving different facets of FanDuel's sports wagering, advance deposit wagering and television business.

Under the Agreement, CDI will provide certain technology and services to enable FanDuel's customers to place pari-mutuel wagers on horse racing via FanDuel's sports wagering and ADW platforms. CDI will also authorize wagering on CDI's owned or controlled horse racing content via FanDuel's platforms in the United States and grant FanDuel certain television and media rights to broadcast CDI-owned racing content on FanDuel's television network(s). In addition, the Agreement provides FanDuel non-exclusive Kentucky Derby sponsorship rights within the sports wagering category.

Beginning in January 2023, FanDuel will pay for CDI technology and services provided by United Tote Company to facilitate pari-mutuel wagering on FanDuel's platforms in the United States, including FanDuel Sportsbook and TVG. As previously announced, CDI has entered into an agreement to sell 49% of United Tote to New York Racing Association (NYRA) in a transaction that is expected to close by the end of 2022.

CDI will provide FanDuel wagering rights to horse racing content owned or controlled by CDI, including the Kentucky Derby, and will receive customary content fees when FanDuel accepts wagers on CDI-owned content. FanDuel will also receive exclusive television rights to the racing content of all CDI Thoroughbred racetracks, including Churchill Downs, once its existing non-Derby media rights deal expires in 2023. The Agreement excludes certain specified racing content, including Kentucky Derby Week.

As part of the Agreement, FanDuel will also receive a non-exclusive sponsorship of the Kentucky Derby in the sports wagering category beginning in 2023 in exchange for an annual sponsorship fee.

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NYRA Acquires 49% Interest in United Tote

Churchill Downs Inc. has entered into an agreement to sell 49% of United Tote Company to NYRA Content Management Solutions, LLC, a subsidiary of the New York Racing Association. The transaction is subject to usual and customary closing conditions, including applicable regulatory notices and approvals, and is expected to close by the end of 2022. As part of the agreement, the United Tote pari-mutuel settlements business will be excluded and will remain with CDI.

CDI and NYRA intend to work together to create and provide a comprehensive and efficient industry-leading pari-mutuel solution through United Tote that will expedite the expansion of horse racing seamlessly onto sports wagering platforms to reach new customers. Pending the appropriate regulatory approvals, NYRA will transition its pari-mutuel wager processing to United Tote in 2023 under a separate agreement.

The post NYRA Acquires 49% Interest in United Tote appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

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CDI Names Simon Senior V. P., Chief Technology Officer

Edited Press Release

Officials at Churchill Downs Incorporated (CDI) have announced that Nate Simon has been named Senior Vice President and Chief Technology Officer of the company. He will be responsible for providing strategic technology leadership and services. Simon replaces Ben Murr who was promoted to President of TwinSpires and Online Gaming in January.

Simon joined CDI in 2011 as Vice President of Operations for the Company's United Tote division before his promotion to President of United Tote in 2012. During that time, Simon was accountable for over 200 employees across the United States and Canada and over $25 million in global revenue.

“I am very proud of the results Nate has delivered in modernizing United Tote over the past 10 years,” said Bill Carstanjen, Chief Executive Officer of CDI. “We look forward to him building on these contributions by delivering further innovation and growth to the Company as the Chief Technology Officer.”

Prior to joining CDI, Simon was the Global Head of IT Operations for Clariant. He started his career with General Electric Co. where he completed the GE Information Management Leadership Program and worked as an Enterprise Resource Planning Project Leader. He holds a Bachelor's degree in Computer Science from Indiana University.

Simon's promotion is effective immediately. CDI will move quickly to fill the role of President of United Tote.

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