Horse Racing Is Losing Casual Bettors — And the Algorithms May Be to Blame

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TLDR NYRA introduced new rules in February 2026 to limit computer-assisted wagering (CAW) in betting pools CAW’s share of handle at Aqueduct dropped from ~22% to ~13% after the changes Total handle at Aqueduct’s winter meet fell 24%, partly due to fewer races and weather CAW accounts for roughly 30% of the $11 billion U.S. racing handle annually Experts warn the sport is losing casual bettors, comparing it to how Las Vegas drove away recreational gamblers

Horse racing is trying to win back everyday bettors by cracking down on the algorithms and software used by high-volume gamblers. The question is whether it’s working — and whether it’s too late.

Computer-assisted wagering, or CAW, lets wealthy bettors place large volumes of bets using data models and algorithms. These tools are not available to regular fans at the track. Critics say CAW drags down payouts by shifting the odds sharply in the final seconds before a race.

Barstool Sports founder Dave Portnoy voiced frustration on X last fall. He said gamblers now need to win twice as often to get the same payouts they received two years ago.

NYRA Tightens the Rules

The New York Racing Association announced new limits on February 6, 2026. CAW accounts are now blocked from placing batch wagers across all betting pools, including exotic bets like exactas and trifectas, within one minute of post time.

A previous rule, in place for five years, had already blocked those accounts from high-volume win-pool bets at two minutes to post. The new rules extend that restriction further.

Any bettor, including CAW users, is also now capped at six bets per second once the one-minute mark hits. NYRA also bars CAW accounts from late pick-5 and pick-6 bets entirely.

Early results show movement. At Aqueduct, from February 11


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