As horse racing in the United States faces a wave of economic challenges and shifting public interest, the sport is evolving in a way that leaves many traditional enthusiasts and bettors disheartened. Once a popular pastime rooted in the grit and glamour of racetracks across the country, horse racing is increasingly influenced by tech-savvy, computer-assisted wagering (CAW) teams who bring a starkly different approach to betting—one that many critics see as undermining the spirit of the sport.
Betting Big, and Fast, with Algorithms
CAW players are no ordinary bettors. These groups—armed with sophisticated algorithms, high-speed computers, and reams of racing data—make their bets in bulk and at lightning speed, often in the moments just before a race. Their ability to analyze odds and place wagers in a matter of seconds gives them an undeniable edge over casual fans and traditional bettors, who rely more on gut feeling, handicapping, or occasional wagers placed for weekend fun.
This new wave of betting represents a seismic shift in the landscape of horse racing. The sport’s stakeholders—particularly track operators—have found a lucrative ally in CAW groups, who inject massive sums into betting pools. In exchange, they receive preferential treatment, such as discounted fees and generous rebates, that allow them to place and adjust bets in ways most bettors can only dream of.
A Raw Deal for Traditional Bettors
For regular fans, who form the backbone of horse racing, the rise of CAW has been a bitter pill to swallow. While CAW players receive rebates of up to 10% on their bets, the average bettor sees no such benefits and is left facing increasingly lopsided odds. “Everyday” bettors provide the liquidity that allows CAW players to profit—yet they do so at a significant disadvantage.
According to Pat Cummings, executive director of the National Thoroughbred Alliance, about a third of all bets placed on U.S. races last year came from CAW teams, who consist of just a handful of major players. With only 10 to 12 high-frequency betting teams making up an estimated $2-3 billion of the $11.6 billion wagered in 2023, these players dominate the field and wield significant influence over betting pools. While track owners welcome the added liquidity CAW brings, everyday bettors are increasingly feeling as though they are being edged out of a game that was once their domain.
Horse Racing’s Dwindling Path
Horse racing, as it has been traditionally known, is in decline across much of the United States. With falling foal crops, fewer race dates, and an ever-shrinking number of tracks in operation, the industry faces an uncertain future. Some tracks are focusing on “boutique” events—special, high-stakes races meant to draw in large crowds and big money—while others, particularly in states like Louisiana, continue operating with relaxed regulations that raise ethical questions about safety and welfare.
For the horses, the stakes are high. Few of them become famous champions, and many instead live short, difficult careers that end in low-stakes races far from the bright lights of major venues. As tracks downsize and the industry contracts, questions about horse welfare remain at the forefront. Advocates argue that the industry’s shift toward CAW and high-stakes betting underscores a growing disconnect between the welfare of horses and the interests of the industry’s wealthiest stakeholders.
A Bleak Future or a Necessary Evolution?
As CAW continues to grow, it’s worth asking what impact this shift will have on the integrity and sustainability of the sport. Supporters argue that CAW brings in much-needed revenue for a struggling industry. They see it as a way to keep the sport afloat in a competitive entertainment landscape. Opponents, however, argue that this kind of insider betting threatens to erode the sport’s foundation and alienate long-time fans.
Ultimately, the rise of CAW represents a broader trend toward technological intervention in traditional industries. Yet, while technology can enhance efficiency and profitability, the question remains: At what cost to the heart and soul of the sport? For now, it seems the only winners are the well-funded, algorithm-backed “whales” and the track operators who host them, while the “everyday” bettors and horses that sustain the sport get left behind.
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