As egregious as NYRA’s error is, what should serve as a wake up call to all fans of horse racing is the obscenely high takeout charged day in and day out. Two choices here, as I see it: Stick to insisting on value investments only, be very selective, or shop for other racing jurisdictions with lower takeouts.
NYRA’s Hayward says takeout reduction permanent – ESPN
OZONE PARK, N.Y. — Though he admitted that there were others who could have discovered it, New York Racing Association president and CEO Charles Hayward on Tuesday took responsibility for the mistake that led to NYRA charging too high a takeout rate on certain wagers for a 15-month period, an error that cost bettors $7.9 million.
It was revealed last week that NYRA had improperly charged a takeout rate of 26 percent — 1 percentage point higher than allowed by law — on exotic wagers, including trifectas, superfectas, pick threes, pick fours, and the grand slam — from Sept. 15, 2010 through Dec. 18, 2011.
Hayward clarified that the pick six wager was not impacted by this overcharge because state law allows NYRA to charge a takeout rate of up to 36 percent on that wager.
As an attempt to rectify the situation, NYRA on Wednesday instituted a 2 percentage point decrease on the takeout rate on the wagers in question. Hayward said the takeout reduction on those wagers would be permanent and not for only 15 months as had been reported by some outlets.