A federal lawsuit has been filed against several horse racing organizations, alleging that they conspired to manipulate betting pools in favor of high-volume bettors. The lawsuit was brought against The Stronach Group, Churchill Downs, and other defendants.
The lawsuit filed by plaintiff Ryan Dickey alleges that these entities enabled select insiders to exploit pari-mutuel betting systems using computer-assisted wagering (CAW) strategies. These insiders allegedly received reduced takeout rates and real-time access to betting data, allowing them to place large bets shortly before races began. The complaint states that this practice disadvantages regular bettors by manipulating odds and payouts.
The lawsuit asserts that racetracks, including those owned by Churchill Downs and the New York Racing Association, increased profits through higher betting volumes while offering rebates to insider groups. According to the complaint, this system operates as an illegal gambling enterprise under the Racketeer Influenced and Corrupt Organizations Act (RICO) and other laws.
The plaintiff seeks class-action status for individuals allegedly impacted by these practices. The relief requested includes damages and changes to the management of betting pools.
The case was filed in the United States District Court for the Eastern District of New York under Case No. 1:25-cv-5962.