The New York Racing Association will move to penny breakage on its pari-mutuel payoffs beginning with the Sept. 1 card at Saratoga Race Course.
The horseplayer-friendly measure will result in all wagers placed on NYRA races being paid to the penny instead of the tiered breakage model previously in effect under New York law. When put in place, New York will join Washington and Kentucky as the only racing jurisdictions in the country to eliminate breakage on races hosted within their state.
"This is a common-sense reform that will put more money back in the pockets of the horseplayers, which is exactly why NYRA supported and advocated for this policy change," said Andrew Offerman, NYRA senior vice president of racing operations.
Historically, breakage has been most noticeable on wagers with smaller payoffs, such as win, place, and show bets. While a winning bet might have a calculated payout of, for example, $5.48, the bettor would only receive $5.40, with the $0.08 in breakage retained by the state or the track. Beginning Sept. 1, the bettor will receive the calculated amount to the penny for bets placed on NYRA's races.
The legislation authorizing penny breakage was signed into law by New York Gov. Kathy Hochul as part of the fiscal year 2026 New York State budget, which included key provisions reflecting the importance of horse racing to New York's economy and culture. In addition to penny breakage, the budget directed funding for transformational equine safety research and simplified the racing and wagering tax code to position the sport for continued success.
In addition to these legislative victories, the New York State Gaming Commission adopted rule changes Aug. 25 to largely eliminate the practice of coupling entries for horses running under shared ownership. Those changes, expected to go into effect this fall, will benefit horseplayers by adding to the number of individual betting interests in more than 150 NYRA races annually.
