New York horse racing industry renews push for fixed-odds betting as revenues lag

New York’s horse racing industry is pressing lawmakers to approve fixed-odds betting on races through the state’s mobile sports wagering platforms, arguing the move could unlock new revenue streams and help the sector compete with fast-growing gambling markets.

Officials from the New York Racing Association (NYRA) presented their case this week at a state Assembly hearing, urging legislators to advance Senate Bill S8433, a proposal introduced earlier this year by Democratic Senator Joseph P. Addabbo Jr. The bill, which would allow fixed-odds wagers on horse races via online sportsbooks, has stalled in the legislative process.

NYRA said fixed-odds betting could generate about $30 million in additional annual revenue for the state and provide a financial lift to racetracks, horsemen, breeders and owners. The model would allow bettors to lock in prices at the moment a wager is placed, contrasting with the traditional pari-mutuel system where odds shift until the race begins.

“We see this as an opportunity to drive new revenue to our industry, to the state, and down to the stakeholders, which include horsemen, breeders, and owners,” Jeffrey Cannizzo, NYRA’s vice president of government affairs, told lawmakers.

Industry leaders argue that integrating horse racing into existing sportsbook apps could broaden the sport’s reach among digital-first bettors, particularly younger audiences who predominantly engage with sports wagering but rarely cross over to racing.

NYRA officials warned that the industry’s competitive position has eroded in recent years. Andrew Offerman, the association’s head of racing operations, said prize money in New York has remained largely flat between 2016 and 2024, even as other states - notably Kentucky - have expanded purses through alternative betting products such as historic horse racing machines. “That change has put incredible competitive pressure on New York,” Offerman said, cautioning that trainers and owners may increasingly look elsewhere.

Lawmakers acknowledged rising operational pressures. Assemblywoman Carrie Woerner, who chairs the committee overseeing racing and wagering, said the sector faces mounting costs associated with “training, labour, operations and regulatory compliance,” while also competing with a widening array of gambling and entertainment options.

The debate comes as New York’s mobile sports betting market continues to surge. State data shows a record $2.64 billion in mobile handle in October, up 13.3% from a year earlier, while revenue climbed 35.4% to $238.7 million at a hold of 9.03%.

Supporters of the bill say allowing fixed-odds racing would give the sport access to this booming digital market and help stabilise an industry considered culturally significant but under mounting financial strain.

Whether lawmakers will move the proposal forward remains unclear, but the renewed push underscores broader efforts to modernise horse racing and secure its footing in an increasingly digital wagering landscape.