Judge Halts Process of Evidence-Gathering In Wide-Ranging CAW Lawsuit Against Nation’s Top Tracks

[Wandering Eyes]

The judge overseeing the pending class-action federal lawsuit over computer-assisted wagering (CAW) on Friday put a halt to “discovery” in the case, meaning that for the time being, the small-scale bettor who initiated the litigation back in October won't be able to go forward with the process of trying to gather evidence from some of the nation's biggest tracks and bet-takers who are named as defendants in the suit.

The order by Judge Joan Azrack was entered into the electronic docket late in the afternoon of Feb. 20 without any accompanying explanation for the ruling. Written reasons commonly accompany orders, but judges are not compelled to explain their actions.

“Discovery is stayed until the Court directs otherwise,” Azrack's order simply stated.

The staying of discovery was something that all defendants in the case–the New York Racing Association (NYRA), The Stronach Group (TSG), Churchill Downs, Inc. (CDI), Racing and Gaming Services (RGS), AmTote International, United Tote, and Elite Turf Club)–had requested from the court back on Jan. 16.

The plaintiff, Ryan Dickey, is a Colorado resident who stated in his complaint that, as a casual bettor, he had wagered about $100 weekly for several decades before quitting horseplaying nearly two years ago over frustrations with alleged “manipulation of the betting pools.”

In a Dec. 29 court filing, Dickey's legal team wrote that the harms of CAW were “beyond dispute,” and that Dickey and other class-action members would be able to prove those claims if the judge required defendants to release archived pari-mutuel records via the process of discovery.

The defendants had told the judge that discovery would be both a hardship in terms of procuring the information and a risk in terms of making it visible to the public.

The defendants wanted the court to keep the process from happening until all of their pending motions to dismiss had been ruled upon. That has not happened yet.

“The scope of Plaintiff's purported class is breathtaking,” stated the Jan. 16 joint motion made by NYRA, TSG, RGS, AmTote and Elite.

“The broad variety of activities implicated by Plaintiff's Complaint–horseracing, track operations, betting platforms, CAW bets, non-CAW bets, regulations and regulators from all 50 states–and the sprawling alleged conspiracy ensure that discovery will be immense,” the motion stated.

“Discovery will be particularly burdensome on Defendants–riddled with trade secret and proprietary information requiring significant protections,” the defendants' motion stated.

The case is still a long way from being certified as a class-action suit that would open it up to a theoretically limitless number of similarly aggrieved horseplayers who, like Dickey, feel wronged by CAW dominance.

The lawsuit's chief contentions–that CAW play amounts to a “scheme” that runs afoul of the Racketeer Influenced and Corrupt Organizations Act (RICO)–will likely be difficult to prove in court.

However, just getting the tracks to reveal, through discovery, how they negotiate and implement CAW contracts could end up being considered a significant victory for low-volume horseplayers, because that process of making evidence and/or depositions public could pull back the curtain on opaque, industry-wide wagering practices.

The next deadline on the docket is for Dickey to file an amended complaint by Feb. 27.

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