Legislated policy means more money to be returned to horseplayers
| Special to the Courier & Press
HENDERSON, Ky. — In a major win for horseplayers, Ellis Park this weekend will become the first track in the country to pay out to the penny, rather than the traditional rounding down to the nearest dime, on dollar payoffs.
The result will be more money returned to bettors. Kentucky’s General Assembly last spring passed legislation requiring that so-called “breakage” be paid to the penny, with that provision going into effect with Ellis Park’s Friday card.
The legislation was sponsored in the Kentucky House by Rep. Adam Koenig of Erlanger and Rep. Al Gentry of Louisville and shepherded through the Kentucky Senate by Majority Floor Leader Damon Thayer. The cause of returning breakage to the bettors long has been championed by the Thoroughbred Idea Foundation executive director Patrick Cummings and TIF founder Craig Bernick, a prominent horse owner and president of Glen Hill Farm in Florida. In Koenig, they found a lawmaker equally as passionate about virtually eliminating breakage.
“This is a welcome and long overdue shift in pari-mutuel wagering to pay bettors the entirety of their duly deserved winnings,” Cummings said in a TIF release. “Kentucky is leading the way, and if a horseplayer wants to enjoy the entirety of a winning dividend, they should be betting on races run in Kentucky.”
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Koenig will be at Ellis Park to witness the first time bettors will be paid rounding down to the penny.
“I’m excited,” he said. “Most importantly, it takes care of the horseplayers in a way that no one has ever seen before. It’s either going to become a standard throughout the industry or it’s going to be an enormous plus for Kentucky racing. You read stories about how big players get additional rebates. Well, now the little players are going to get additional rebates.”
Koenig says he plans to bet $2 to show on every horse in the first race Friday.
“That way I’ll cash three tickets,” he said. “I think I’m going to do it on my (online) account, so I can snap a photo and have it forever.”
To show the difference breakage makes, TIF provides this example: Previously, if the “unbroken” return on a show bet was $1.4854928, the return for every $1 unit was rounded down to $1.40. Where before such a $2 bet would return $2.80, now it would pay $2.96 on a Kentucky race.
“We’ve reviewed and tested penny breakage for a Friday start and we’re set to go,” said Ellis Park General Manager Jeff Inman. “We’re very pleased that Rep. Koenig will be present to witness the start. We know the veteran horseplayers will be thrilled with the change, and we’re curious how the casual bettor will react.”
The virtual elimination of breakage was part of HB 607 that also standardized the excise tax on every pari-mutuel wager placed in the state and also made claiming races eligible for purse supplements paid out to registered Kentucky-bred horses through the Kentucky Thoroughbred Development Fund.
In the past, Kentucky tracks and their horsemen split the on-track breakage, while off-track and online bet-takers kept the money. The Thoroughbred Idea Foundation estimates that $35 million over the last five years was collected and retained as breakage from Kentucky races.
TL;DR
Ellis Park will be the first racetrack in the U.S. to pay out winnings to the penny, following new legislation aimed at benefiting horseplayers. This change is expected to return more money to bettors and could set a precedent for other tracks.
- The Kentucky General Assembly passed legislation requiring breakage to be paid to the penny, effective at Ellis Park's Friday card.
- This change is anticipated to provide additional rebates to smaller bettors, enhancing their experience.
- The Thoroughbred Idea Foundation estimates that $35 million in breakage has been retained from Kentucky races over the past five years.
Ellis Park will now return winnings to bettors without rounding down to the nearest dime, allowing them to receive the exact amount owed, down to the penny. This change is expected to increase the total payouts for horseplayers significantly.
The legislation was passed by Kentucky's General Assembly and was sponsored by Representatives Adam Koenig and Al Gentry, with support from the Thoroughbred Idea Foundation. It aims to eliminate breakage and ensure that bettors receive their full winnings.
The new system is expected to provide more money back to bettors, particularly benefiting smaller players who previously received less due to rounding. This change aims to enhance the overall betting experience and fairness in payouts.
Key figures include Patrick Cummings, executive director of the Thoroughbred Idea Foundation, and Rep. Adam Koenig, who championed the legislation. Their advocacy focused on ensuring that bettors receive the full amount of their winnings.
Previously, a $2 show bet that returned $1.4854928 would be rounded down to $1.40, resulting in a total payout of $2.80. With the new system, that same bet would now yield $2.96, demonstrating a clear financial benefit for bettors.