NYRA/FanDuel contract dispute at impasse on Saratoga eve

The New York Racing Association and FanDuel remained at an impasse over a contract for NYRA’s Saratoga signal on the eve of the popular track’s opening day, according to officials with NYRA.

In a statement, Patrick McKenna, NYRA’s vice president of communications, said that no contract had been signed as of late Wednesday afternoon. A previous contract between the two sides allowing FanDuel and its horse racing account-wagering operation, TVG, to stream and offer wagering on NYRA’s races expired on July 1.

McKenna said that as a result of the impasse, “pari-mutuel wagering on the summer meet at Saratoga Race Course will not be available on TVG/FanDuel platforms when the meet opens on Thursday.”

In a statement, FanDuel was critical of NYRA’s stance of prohibiting wagering from its customers in states outside of New York if the company did not agree to a higher rate for the New York customers.

“NYRA has not offered us the same terms as our prior agreement for wagering from states other than New York unless we agree to its proposed increase in the surcharge we pay to it on wagers from New York residents, essentially denying us the ability to offer its content to our customers in other states,” the statement said.

Officials for both sides have said that the impasse centers on a rate hike on wagers made by New York residents on the two platforms.

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NYRA’s races are streamed daily on a handful of other wagering sites, including the association’s own NYRA Bets account-wagering platform, and the vast majority of its races from Saratoga are broadcast live on networks owned by Fox Sports, NYRA’s broadcasting partner. An exclusive deal between the two companies in 2020 on live broadcast rights limited FanDuel and TVG to streaming NYRA’s races live.

Fees from NYRA’s simulcast wagering revenues are divvied up statutorily to a handful of in-state constituencies, including the state’s politically powerful off-track betting companies. While NYRA has consistently expressed frustration with those carve-outs, the association has not been able to build the political support to reduce the fees.

McKenna said in his statement that the rate hike sought for in-state wagers from FanDuel “has nothing to do with the bottom line.”

“Rather, it is about gaining fair compensation to support the trainers, breeders, owners, and others who make racing possible in New York,” McKenna said.

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