Posted on: October 31, 2025, 02:23h.
Last updated on: October 31, 2025, 02:48h.
- A new class-action lawsuit in federal court claims that horse racing is manipulated to benefit a select group.
- This lawsuit contends that ordinary bettors are harmed by computer-assisted wagering platforms.
A class-action lawsuit initiated in New York’s Eastern District Court accuses major entities within the horse racing sector of conspiring to manipulate betting outcomes via computer-assisted wagering (CAW) strategies.
The Seattle-based law firm Hagens Berman, known for its work in class-action cases, has filed this suit on behalf of lead plaintiff Ryan Dickey and other affected individuals.
Ryan Dickey, a Colorado native with a two-decade history of engaging in thoroughbred racing bets, alleges he previously lived in Kentucky, where he placed around $100 in wagers each week, primarily through TwinSpires, a platform owned by Churchill Downs, Inc.
Dickey’s representation asserts that the defendants have colluded to exploit “ordinary bettors” like him via what they term “Insider Betting Groups,” which allegedly comprise affluent bettors leveraging algorithms, artificial intelligence (AI), and inside information to divert “billions to a small group of insiders and operators of racetracks as well as betting platforms.”
Allegations of the Case
The lawsuit characterizes CAW as “high-volume parimutuel betting conducted by professional teams deploying models, direct tote connections, and automation to place thousands of targeted bets — frequently just before betting pools close.”
According to the litigation, these CAW operations continuously analyze real-time pricing and data, with AI calculating fair odds instantaneously and exploiting opportunities as they arise. These high-volume betting facilitators typically receive lower fees from racetracks and ADW operators, along with exclusive advantages for faster bet placements.
The case identifies Elite Turf Club, a CAW organization that is 80% owned by Stronach Group and 20% by the New York Racing Association (NYRA), as a key defendant. Velocity Wagering, another CAW owned by Churchill Downs, is also included as a defendant.
Additional defendants include AmTote, the largest betting processing entity in North America, which is essentially a clearinghouse for parimutuel wagering, managing upwards of $15 billion in bets annually. AmTote is a subsidiary of Stronach Group.
The lawsuit seeks both compensatory and treble damages as stipulated under the Racketeer Influenced and Corrupt Organizations (RICO) Act.
Stronach’s Dismissal Request
In a combined statement, Elite Turf Club and AmTote have described the horse racing lawsuit naming them as defendants as “without merit.”
“This lawsuit fundamentally misrepresents the nature of computer-assisted wagering alongside the roles of Elite Turf Club and AmTote in regulating, operating, and managing wagering activities. CAW is a well-established component of both North American and global parimutuel wagering systems, fully regulated at both federal and state levels. All CAW participation adheres to the same pool rules, tote system audits, and regulatory approvals as all other wagering methods,” stated the companies.
“Claims suggesting that CAWs enjoy an unfair advantage are baseless and disregard the safeguards integrated within the regulatory and technological framework for horse racing,” the statement continued.
As of now, Churchill Downs has not issued any statements regarding the lawsuit.