A controversy in New York over an incorrect takeout rate on some exotic wagers that cost bettors more than $8 million has sparked a rebate from TwinSpires.com.
The advance deposit wagering service owned by Churchill Downs Inc. recalculated the payoffs on trifectas, superfectas, Pick 3, Pick 4, and Grand Slam wagers between Sept. 15, 2010, and Dec. 18, 2011, then credited the wagering accounts of more than 22,000 bettors. Rebates were then applied June 4 on more than 280,000 wagers.
“We are pleased to have the capability to address this situation for our loyal players,” said Jeremy Clemons, TwinSpires.com vice president of marketing. “One of the many benefits of playing with TwinSpires.com is detailed reporting of your account wagering history and that information made this possible.”
TwinSpires worked with United Tote to recalculate the payoffs.
NYRA officials said 9,994 members of its rewards account were credited March 23 with $437,716 for the overcharge. The association said it had also sent out 4,927 checks—totaling $157,292—March 26 to qualifying winners of exotic bets it could identify.
Any TwinSpires.com account holders can find more information at www.twinspires.com where a frequently asked questions section is available.
The state in 2008 permitted the New York Racing Association to increase its takeout on certain exotic bets to 26%—with a sunset on that level due to take effect in September 2010. But NYRA continued charging the higher level, instead of the required 25% rate, until state auditors with state Comptroller Thomas DiNapoli’s office caught the mistake in December 2011. By then, more than $8 million in additional takeout costs had been imposed on bettors.
