John Cunningham

Trying to beat the races.....and the chalk, and computer players, and the takeout, and breakage, and......

[David Aragona @HorseToWatch]

"Handle from computer assisted wagering (CAW) players was $9,239,447, down $6,169,314, or 40 percent, compared to last year during Saratoga's three-day holiday weekend." (Overall handle up 1.7 percent) https://t.co/5vWcOisM9X

[Derby1592 @derby1592]

Saratoga Takeout and CAW Summary

The chart below compares @TheNYRA @Saratoga1863 (SAR⬆️) to min/med(⭐️)/max takeout across ALL tracks for each wager type.

Saratoga is near or below the median for all wager types and has penny breakage, which are all good for players.

But most importantly NYRA is the ONLY racing jurisdiction attempting to throttle CAW access in ALL pools.

Unless you enjoy getting crushed by CAW teams, then you should be shifting some or all of your handle to Saratoga this summer.

You will get better results and will help horseplayers collectively send a strong message that we are capable of change and rational behavior and prefer betting into pools in which we have a fighting chance rather than into pools in which we are being “T O Elvised” on a regular basis.

See the link below for takeout and CAW info on all tracks.

Wager wisely and enjoy the races.

https://t.co/p7VjTMIf3Y

[Derby1592 @derby1592]

Great news from @EJXD2
Showing that payers more than made up for lost CAW handle @TheNYRA

If players continue to shift their handle to NYRA, then it will reinforce their efforts to throttle CAWs and send a message to the industry that players demand the same from others.

[Derby1592 @derby1592]

@nickseevers If this trend continues and players don’t support NYRA this summer and fall by shifting handle, then there may be no hope for this game from a gambling perspective.

[John Cunningham @j_ham1]

@Slappy_White1 @ChurchillDowns 1 was clear favorite in the Double Will Pay and slight Favorite in the Pick 3. Nothing to see here though

[Derby1592 @derby1592]

It’s up to us as players to make the @TheNYRA investment pay off. If we do respond by shifting our handle to NYRA this summer, then NYRA and the rest of industry will take notice. If we don’t, they will also take notice. It’s time to stop just complaining about CAWs and act.

[Ed DeRosa @EJXD2]

@derby1592 This is, by far, the worst thing I’ve ever read about horse racing, handicapping, and/or gambling

[David Aragona @HorseToWatch]

It is pretty surprising that no one else from the Derby has jumped into this depleted field at the last second. A bunch of horses sitting on the sidelines could be favored in a $2 million Grade 1, and all their connections are just saying, “No, thanks!”

[Derby1592 @derby1592]

I know I am beginning to sound like a broken record, but it would have been nice for horseplayers to know this before the Wood…

[Derby1592 @derby1592]

On this weeks Sport of Kings podcast, I go into a short rant about CAWs and an important choice that players need to make right now. It starts at about the 31 minute mark. For those who don't want to listen to the podcast, I pasted in the transcript for that segment below. I urge you to please read (or listen) to it and thoughtfully consider what I say.

"I want to do something a little different today when talking about the wagering menu at NYRA because NYRA is now fundamentally different from every other racing jurisdiction for one big reason: they are the only major track actually doing something meaningful to manage CAW activity.

NYRA now limits CAW activity in all pools. Not just the win pool or the Pick 5, all pools. CAW teams cannot batch a flood of wagers at the final click. They must get their wagers in at least one minute to post, and two minutes in the win pool.

No other track is doing anything remotely close to this. Most are doing little or nothing to manage CAW access to their pools.

So instead of simply complaining about CAWs, players now have something they’ve never really had before: a choice.

Let me use a poker analogy.

Imagine you walk into a large poker room with tables spread out everywhere. At every table except one sit the best poker players in the world. You can choose to sit at one of those tables, but there’s a catch: you also have to play by a different set of rules than they do.

One rule is that you always have to bet first. They all get to see your bet before making their own decisions.

The second rule is that when they win, the house only takes a tiny rake from the pot, but when you win, the house takes a much larger rake.

Now imagine there’s one special table in a separate room called the NYRA Room. At that table are five regular players just like you, and everyone plays under exactly the same rules.

Which table would you choose?

The NYRA table, of course.

You would have to be either stubborn, foolish, or both to choose one of the other tables because at least in the NYRA room you have a fighting chance. At the other tables, you really don’t.

Well, for the first time, horseplayers now have a similar choice every time they log into their ADW account.

You can choose to play at the NYRA table, where the playing field is at least somewhat level and where you actually have a chance to compete.

Or you can continue to play at tracks that effectively give retail players the finger every single day by allowing CAW teams virtually unrestricted access to the pools.

And make no mistake: NYRA is taking a risk by doing this.

Their handle is down because CAW participation is down. Meanwhile, most other tracks continue catering to the CAW teams and assume the rest of us will keep betting no matter how unfair the environment becomes.

So now all of us have a very important choice to make.

If enough players make the right choice and shift more of their handle to NYRA, we can collectively send a powerful message. NYRA will be rewarded for creating a fairer wagering environment, and other tracks may finally feel pressure to follow suit.

But if players continue supporting tracks that refuse to manage CAW activity, despite all the complaints and outrage, then nothing is going to change.

The game will continue moving toward a future where computers are primarily betting against other computers while retail players slowly disappear.

This summer and fall may prove to be a pivotal moment for the future of horse racing.

We now have a real choice, and how we respond may determine what happens next.

Think of it as our “meteor heading toward Earth” moment.

We can be stubborn and refuse to adapt until we become extinct like the dinosaurs, or we can evolve, change our behavior, and give ourselves a chance not just to survive, but maybe even thrive.

It’s up to all of us.

Please choose wisely.

The future of the game may depend on it."

[John Cunningham @j_ham1]

@HorseToWatch @DailyRacingForm When you looking at pace figures do you look at the individual horses’ pace lines or the pacesetters?

[David Aragona @HorseToWatch]

Kentucky Derby Day is one of the rare opportunities we still have to gain new customers, and this creates a terrible impression for those not already familiar with the downsides of betting on our sport. We certainly know how to push them away!

[John Cunningham @j_ham1]

@EmilyOptixEQ Great pick!

[Robert N. Falcone Jr. Racing Stable @FalconeJr]

Feed must be so different at parx 😂 🤡

[maggi moss @maggimoss]

Another clear example of such a disjointed- really sad fate of broodmares- even Ginger Brew found herself in a kill pen - I agree w Margaret here- she’s safe - she was famous - how bout all the other old broodmares discarded? That weren’t famous ? They won’t be as lucky .

[John Cunningham @j_ham1]

@Capper_RMac Chart says he was pulled up and transferred off in EQ Amb. Hopefully all is ok

[WESTLAKE RACING STABLE @westlakeracing]

YOU MAY WANT TO SIT DOWN BEFORE YOU READ THIS AND BE SURE TO REPOST THIS TO MAKE A DIFFERENCE:

THE BREEDERS’ CUP $100 MILLION QUESTION.

These numbers should make the racing industry furious.

These numbers come directly from Breeders’ Cup IRS Form 990 filings.

The mission statement of Breeders’ Cup Limited says the organization exists:

“...to promote the growth of thoroughbred breeding, racing and sales through proactive leadership, innovation and service.”

Are they following their mission statement?...Let’s look at the numbers.

According to 10 years of IRS filings through Dec. 31, 2024, Breeders’ Cup Limited has built a massive investment portfolio.

Looking specifically at Part X, lines 11 and 12 (publicly traded securities and other securities), the balance sheet shows:

2015 — $42,137,446
2016 — $47,775,257
2017 — $53,976,353
2018 — $62,757,916
2019 — $66,241,942
2020 — $76,826,950
2021 — $91,680,183
2022 — $80,183,956
2023 — $88,203,537
2024 — $108,818,752
Over the past decade the Breeders’ Cup investment portfolio increased by roughly:
$66,000,000.

Now compare that to what has been distributed back to the industry through grants and similar payments.
According to those same filings (Part I, line 13) during that same period 2015-2024, the annual grant amounts in order were:
$87,512, $42,900, $42,900, $48,002, $49,599, $73,061, $48,638, $53,903, $49,020, $3,231

Yes you are reading that right $3,231 in 2024.

Total grants over the decade:
$498,766

LET THAT SINK IN.

Portfolio growth:
$42M grows to $108M

Industry grants (10 years) total:
$498,766

Now consider this:

Over the past 10 years

Executive compensation:
Approx. $23,500,000

Industry grants:
$498,766

LET THAT SINK IN.

Breeders’ Cup executives were paid roughly 47 X more than the organization distributed in grants to the industry it claims to promote.

THAT SHOWS YOU THEIR PRIORITY.

Meanwhile the industry is still struggling to properly fund aftercare and support racing jurisdictions fighting to survive, including Southern California racing.

As demonstrated in my prior posts, aftercare infrastructure alone needs at least $20 million in immediate seed funding. The Breeders’ Cup clearly has the capital.

Yesterday, Breeders’ Cup Charities also announced more than $650,000 in donations supporting organizations including the Thoroughbred Aftercare Alliance, PDJF, RTCA and the Grayson-Jockey Club Research Foundation.

Those organizations do important work.

Every dollar helps.
But the larger issue remains scale.

When compared to $66 million in portfolio growth and $23.5 million in executive compensation, the industry is still left asking a simple question:

Is this the level of reinvestment the sport actually needs?

One more point worth noting:

Breeders’ Cup 2026 tickets go on sale April 21 at noon Eastern.

Some premium seating packages are reportedly priced upwards of $2,400 per seat.

Before asking the industry to open its wallet again, owners, breeders, trainers and bettors alike...it might be time for Breeders’ Cup leadership to demonstrate how this capital is being reinvested into the sport itself.

Because the question is no longer hypothetical:

When does the money start coming back to the industry that created it?

Tomorrow we take a closer look at Breeders’ Cup Charities.

Stay tuned.

REFORM IS COMING!

REPOST AND SPEAK OUT!

@BreedersCup

[WESTLAKE RACING STABLE @westlakeracing]

A $100 MILLION RESERVE. A $355 CHARITY.

BREEDERS’ CUP PART 2: THE CHARITY

REPOST THIS TO MAKE A DIFFERENCE!

Yesterday we looked at Breeders’ Cup Limited’s $100+ million investment portfolio.

Today we look at Breeders’ Cup Charities.

This is the nonprofit that represents the Breeders’ Cup’s charitable and industry support efforts.

The numbers come directly from IRS Form 990 filings.

Over the past decade, Breeders’ Cup Charities has operated on a remarkably small scale.

Total annual revenue reported:

2015 — $93,466
2016 — $132,406
2017 — $125,300
2018 — $120,800
2019 — $100,800
2020 — $183,685
2021 — $69,236
2022 — $64,900
2023 — $113,402
2024 — $355
Yes.
You read that correctly.

$355 in total revenue reported in 2024 (SEE 2024 FORM 990 PHOTO BELOW)

Not $355 thousand.

Three hundred and fifty-five dollars.

For perspective, that might not even cover a lunch meeting at the Breeders’ Cup and Jockey Club offices at 250 Park Avenue in New York.

@BreedersCup also charges upwards of $2,000 per seat for premium seating at its championship event.

Yet in 2024 the organization’s charitable arm reported just $355 in total contributions.

In other words:

Breeders’ Cup Limited couldn’t even contribute the revenue from one seat to its own charity.

Meanwhile Breeders’ Cup Limited at that time sat on more than $100 million in liquid investments.

Now look at the grants distributed.

2015 — $99,490
2016 — $124,400
2017 — $101,600
2018 — $119,200
2019 — $100,400
2020 — $168,228
2021 — $52,450
2022 — $75,685
2023 — $136,639
2024 — $74,500

These charities do important work.

No one disputes that.

The Thoroughbred Aftercare Alliance.
The Permanently Disabled Jockeys Fund.
The Racetrack Chaplaincy.
The Grayson-Jockey Club Research Foundation.

Breeders’ Cup Charities also recently announced more than $650,000 in charitable donations supporting many of these same organizations.

Every dollar helps.

But it raises another fair question.

How much of that funding came directly from Breeders’ Cup executives themselves?

And how much compensation have those same executives received from Breeders’ Cup Limited over the past decade? Here is the answer...

Public filings show Breeders’ Cup executives have received approximately $23.5 million in compensation from 2015 through 2024.

If just 2% of that compensation had been donated to Breeders’ Cup Charities, it would total roughly $470,000.

Surely if executives had personally stepped up in a meaningful way, the industry would have heard about it. I hope they did and if so they should say so.

Transparency on those numbers would help the industry better understand who is actually funding the sport’s charitable efforts.

But the larger issue remains scale.

Breeders’ Cup Charities largely distributes money raised from donors, fundraising events and merchandise programs, not directly from the $100+ million balance sheet of Breeders’ Cup Limited itself.

In other words:
Much of the money being distributed is other people’s money, not Breeders’ Cup’s.

Another important detail from the IRS filings.
Breeders’ Cup Charities files the short-form 990-EZ, a return typically used by nonprofits with relatively small financial activity.

That alone tells you something about the scale.

The charitable arm of the sport’s world championship event is operating at a level typically associated with small local nonprofits.

Maybe the focus was elsewhere.

In 2021 and 2022 Breeders’ Cup provided approximately $2.3 million in loans to HISA @hisa_us

Meanwhile in 2024 Breeders’ Cup Charities reported just $355 in revenue, despite Breeders’ Cup Limited holding over $100 million in invested assets.

That contrast speaks for itself.

The reality is the sport already knows where meaningful capital is needed.

Industry leaders have repeatedly said that aftercare infrastructure alone requires roughly $20 million in seed funding to properly support retirement programs, retraining facilities and long-term care.

That is a solvable problem.

Especially for an organization sitting on more than $100 million in invested assets.

Meanwhile the industry is struggling to fund:

• general aftercare and aftercare infrastructure
• racetrack worker support
• jockey safety programs
• racing jurisdictions fighting to survive

When the sport’s flagship event clearly has the financial capacity to do far more.

Yesterday’s question was simple:

When does the money start coming back to the industry that created the $100 million gold mine?

Tomorrow we ask the final question.

If the Breeders’ Cup has the capital…

why isn’t it being deployed to grow racing?

Stay tuned.

[David Aragona @HorseToWatch]

The few remaining horseplayers: "We want lower takeouts, restricted CAWs, and just better payouts in general."

Racetrack: "Here's the most complex jackpot-style wager ever with a 22% takeout and 75% (!) rolling carryover, CAWs welcome."

Can't make it up. https://t.co/1WZusgAMgN

[maggi moss @maggimoss]

In a suburb letter from the TAA- As we all “talk” about aftercare - I am dumbfounded by these 👇🏻👇🏻👇🏻statistics - think about 1/20 of 1 percent ofsale price on an estimated 1.4 BILLION in sales? As so many horses w the prevalent “ one last race syndrome” have no place to go