AmTote, Elite Turf Club release statement on CAW lawsuit
Two of the companies named as defendants in a recent class-action lawsuit regarding computer-assisted wagering have said in a joint statement that they will “vigorously defend” themselves.
AmTote International and Elite Turf Club, two companies owned by 1/ST Racing and Gaming, are the first companies to respond to the lawsuit, which was filed last Friday. The suit alleges that racetracks and bet-processing companies have conspired “to divert money in the betting pools” from everyday players to the CAW groups.
The statement says that the “claims are meritless,” and it goes on to say that the lawsuit “fundamentally misrepresents the nature of computer-assisted wagering” and the roles played by the defendants, which also include Churchill Downs Inc. and the New York Racing Association.
“Claims that CAWs receive an unfair advantage are unfounded and ignore the safeguards built into the regulatory and technological framework of racing,” the statement says.
The response hints that if the case goes to trial, the defendants are likely to base their arguments on the claim that advantages received by CAWs – such as rebates and last-second access to the pools – are common elements of “high-volume” businesses that do not fundamentally alter the chances that CAWs will win bets.
“These benefits do not offer any advantage in wagering outcomes,” the statement said. “It is a customer-incentive program that is important to not only our business but the industry.”
The progress of the lawsuit will be closely watched in the racing industry due to the outsized impact that CAWs have on pari-mutuel pools and industry revenues, as well as the controversy the programs have generated over the past two decades. While only one plaintiff was named in the lawsuit when it was filed, the firm that filed the suit has been encouraging other bettors to join the class.
NYRA has yet to comment on the suit, while Churchill Downs has not responded to requests for comment.
AmTote and Elite said in the statement that they will not comment further on the suit “at this time.”
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