Updated on 03/23/2012 2:10PM

NYRA credits accounts affected by takeout mistake


The New York Racing Association on Friday credited 9,994 NYRA Rewards account-holders with a total of $437,715.94 as a result of charging a higher-than-allowed takeout rate on certain wagers for a 15-month period.

On Monday, the NYRA will be sending out checks for a total of $156,791.80 to qualifying W2G winners. Qualifying wagers are those made through NYRA Rewards or those that resulted in W2G forms from Sept. 15, 2010 through Dec. 18, 2011. Those wagers had to be made on a trifecta, superfecta, pick three, pick four or Grand Slam. There were a total of 743,076 qualifying winning tickets through NYRA Rewards and W2G winners.

The NYRA had to pay back bettors after charging a takeout rate of 26 percent, 1 percentage point higher than allowed by state law. An amendment agreed upon when NYRA was awarded the franchise in 2008 called for a 1 percent increase in takeout, but only for a two-year period. The provision was to expire in Sept. 2010, but NYRA kept the takeout rates at 26 percent. The mistake was discovered by when the state comptroller was conducting an audit of the New York State Breeders’ Fund.

In December, NYRA announced that those wagers would have a takeout rate no higher than 24 percent.

The total amount that bettors were overcharged by the takeout was $7.9 million but the majority of those wagers were placed outside of New York.

The New York State Racing and Wagering Board has an ongoing investigation into the matter.