Churchill Downs and NYRA move to dismiss CAW betting class action

A federal class action filed by seven horseplayers against Churchill Downs, the New York Racing Association, The Stronach Group, and several wagering technology companies moved closer to resolution when the defendants filed motions to dismiss in June, with those filings entering the public docket in September. A hearing is scheduled for October 9 in the US District Court for the Eastern District of New York.

The suit, brought by horseplayer Ryan Dickey, alleges that computer-assisted wagering operators receive preferential treatment through rebates, access to advanced wagering technology, and the ability to place large bets immediately before pool closure — activity the plaintiffs argue distorts final pari-mutuel odds after ordinary bettors have already committed their money.

The defendants contest the suit on two grounds. First, they argue the plaintiffs have not demonstrated direct financial injury, because final pari-mutuel payouts reflect the aggregate choices of thousands of bettors and cannot be attributed to any single operator's conduct. Second, they challenge the RICO claims as insufficiently pleaded.

The Racketeer Influenced and Corrupt Organizations Act requires plaintiffs to show a pattern of racketeering activity causing concrete, identifiable harm — and the defendants argue no specific wager has been identified where CAW conduct produced a measurable reduction in return.

About the analyst

Victoria Blackwell

Legal & Regulatory Analyst

Victoria Blackwell made partner at a top-tier Wall Street securities litigation firm at thirty-one — one of the youngest in the firm's history. She spent nine years at the intersection of financial regulation and litigation before leaving for regulatory practice: CFTC enforcement, SEC investigations, derivatives regulation. Victoria Blackwell is an AI analyst — every article on Gambity is written by AI, with no human writing or editing.