Key Moments:
- Hagens Berman has filed a lawsuit in the US District Court for the Eastern District of New York, accusing leading horse racing companies and data firms of collusion.
- The complaint alleges that select insiders benefit from Computer-Assisted Wagering (CAW), disadvantaging regular bettors.
- Plaintiffs seek damages under RICO and demand changes to ensure greater transparency and fairness in horse race betting.
Lawsuit Targets Alleged Collusion in Horse Racing Wagering
Hagens Berman, a Seattle-based law firm recognized for major class-action litigation, has initiated legal action against key players in the horse racing industry. The firm, guided by managing partner Steve Berman, claims that a coordinated effort among operators and data firms has given certain insiders an undue edge in betting pools, harming everyday bettors.
Role of Computer-Assisted Wagering and Preferential Treatment
The lawsuit emerged following concerns over abrupt changes in betting odds just before races begin, a phenomenon tied to Computer-Assisted Wagering (CAW). This technology facilitates rapid, large-scale bets based on data analysis, allegedly allowing high-volume bettors to gain significant advantages. According to Steve Berman, “We believe this scheme is not a victimless crime. Its victim, the average public bettor, has been caught in a modern reverse Robin Hood scenario in which a select few with inside information are stealing from average public retail bettors and giving to the already rich, a small group of bettors, and the operators of racetracks and betting platforms, the wealthy and few.”
Defendants and Core Platforms Identified
The New York Racing Association (NYRA), Churchill Downs Inc., United Tote, AmTote International, and The Stronach Group have been named as defendants. The complaint asserts that these organizations empowered CAW users with access to specialized data and wagering tools unavailable to typical participants, thereby enabling an unfair betting environment.
In addition, three major CAW platforms are cited as central to the alleged scheme: Elite Turf Club (80 percent owned by The Stronach Group and 20 percent by NYRA), Velocity (a Churchill Downs subsidiary), and Racing & Gaming Services. The lawsuit claims these entities benefited from a closed system that provided select bettors with privileged access.
Details of the Alleged Manipulation
Central to the complaint are accusations of manipulating pari-mutuel betting pools. Hagens Berman alleges that the defendants used their control over technology and information to provide rebates, reduced fees, and privileged access to live betting data to a select group, resulting in predictable profits for those insiders at the expense of casual bettors.
The lead plaintiff, Ryan Dickey, is a recreational bettor from Colorado representing others who placed bets impacted by CAW-fueled betting pools, but who did not use such sophisticated systems themselves.
🚨BREAKING: Class action lawsuit filed in New York against all major horse racing tracks and totes due to lack of response to increasing usage of CAW (Computer Aided Wagering) technology in betting pools. pic.twitter.com/ttzl7eo8vr
— BetVibe (@betvibewin) October 24, 2025
Alleged Data Clearinghouse Involvement
According to the complaint, United Tote and AmTote International—both data-clearing organizations—provided CAW platforms with nearly real-time access to betting activity. Consequently, these favored users could place strategic wagers milliseconds ahead of the general public. The RICO claim accuses the defendants of intentionally misleading bettors and orchestrating a system that redistributes profits to insiders.
Relief Sought and Potential Industry Impact
The suit highlights the disadvantage suffered by bettors whose odds dramatically worsen due to large, last-minute CAW-driven bets with no opportunity to withdraw or adjust their stakes. Bettors may place a wager at 5-to-1 odds, only to see those drop to 2-to-1 just before the race starts, impacting potential payouts.
Hagens Berman is seeking treble and compensatory damages under the Racketeer Influenced and Corrupt Organisations Act, alongside systemic reforms for transparency. The pattern of alleged manipulation is said to erode trust in the horse racing industry. Consequently, the outcome of this case could lead to regulatory changes that promote a fairer betting environment for all participants.
| Defendant | Role in Alleged Scheme | CAW Platform Involvement |
|---|---|---|
| New York Racing Association (NYRA) | Provided access to data/tools | Elite Turf Club (20% ownership) |
| Churchill Downs Inc. | Provided access to data/tools | Velocity (subsidiary) |
| United Tote | Managed betting transaction data | Alleged real-time data access |
| AmTote International | Managed betting transaction data | Alleged real-time data access |
| The Stronach Group | Provided access to data/tools | Elite Turf Club (80% ownership) |
| Racing & Gaming Services | CAW operator | Independent |
- Author
Daniel Williams
