Stronach-Owned Entities Respond To Class Action CAW Lawsuit

[Wandering Eyes]

In a statement issued Thursday, The Stronach Group owned Elite Turf Club, LLC, and AmTote International, Inc., have responded to a class action lawsuit filed last week against several Computer Assisted Wagering (CAW) related wagering entities under the Racketeering Influenced and Corrupt Organizations Act (“RICO”) and under state law, alleging they have “organized and participated in the corruption of the betting system to the detriment of the class.”

The debate around CAW players typically surrounds the edge they wield over regular gamblers thanks to their use of sophisticated technologies that allow them to precisely read the markets and place massive wagers across many pools in the final seconds of betting–which can lead to massive odds drops–as well as the attractive rates and rebates offered to them which are unavailable to the average punter.

Among its various arguments, Thursday's statement claims the benefits available to CAW players are similar to airline miles or credit card rebate programs, and that the lawsuit “has the potential to devastate an entire industry.”

Elite Turf Club is a CAW wagering platform 80% owned by Stronach Group and 20% owned by the New York Racing Association (NYRA).

AmTote International is the dominant totalizator service provider for North American racetracks, described in the lawsuit as the “clearing house of U.S. pari-mutuel wagering.”

The other defendants in the class action lawsuit, brought by former horse racing gambler Ryan Dickey, comprise Churchill Downs Inc (which owns CAW wagering platform Velocity), NYRA, United Tote Company and Racing & Gaming Services, another CAW wagering platform.

The full statement can be read here:

Elite Turf Club, LLC, and AmTote International, Inc., are among several horse racing industry organizations that have been named in a class action lawsuit filed recently in the state of New York by a single bettor from Colorado. These claims are meritless, and the company will vigorously defend itself. The lawsuit fundamentally misrepresents the nature of computer-assisted wagering (CAW) and the role Elite Turf Club and AmTote International have in operating, managing and regulating wagering activity. CAW is a long-standing industry, federal and state regulated component of the North American and global pari-mutuel wagering system. All participation in CAW is subject to the same pool rules, tote system audits and state regulatory approvals that govern all other forms of wagering.

Claims that CAWs receive an unfair advantage are unfounded and ignore the safeguards built into the regulatory and technological framework of racing. Like many businesses, high volume customers, including CAW players, may receive benefits such as rebates based on the volume of play; this is no different than and can be likened to airline miles or credit card rebate programs. These benefits do not offer any advantage in wagering outcomes – it is a customer incentive program that is important to not only our business but the industry. The horse racing ecosystem is made of many stakeholders – horses, jockeys, backstretch employees, trainers, breeders, and all types of bettors including retail customers, advanced deposit wagering accountholders and CAW players. Each of these stakeholders play a critical role in the viability and sustainability of this sport. Make no mistake – this lawsuit is an attack on the entire industry and puts at risk the tens of thousands of working families and the communities that rely on it. This baseless lawsuit has the potential to devastate an entire industry.

The company will unequivocally defend the integrity of our business operations while continuing to lead innovation in this sport. We are confident in the integrity of our systems, the strength of our oversight, and the safeguards in place designed to prevent unfair play. We will continue to work closely with our industry partners and regulators to ensure a level field for all participants to deliver a world-class racing product to our fans, horsemen and women, and bettors. We will address these unfounded and outrageous claims through the appropriate legal channels.

The post Stronach-Owned Entities Respond To Class Action CAW Lawsuit appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

View the full article