Yonkers Raceway Teases Decrease in Takeout Rates Effective 2021

The takeout rate is the percentage of all pari-mutuel wagers which are retained as revenue by the racetrack. Amounts not retained as takeout are divided among the winning ticket holders. As such, the takeout rate directly affects the amount of winnings horseplayers collect. Lower takeout wagers are generally more sought after by horseplayers and generally attract greater wagering volume due to their increased payouts relative to higher takeout bets. If well received, the move could result in increased revenue to the racetrack.

For example, Monday night’s early pick four returned $358.50 at the current 25% takeout rate and would have returned approximately $382.40 at the reduced 20% takeout rate, assuming the only variable which changed was the takeout rate.

Takeout rates vary by wager and are set by the racetrack and approved by the New York State Gaming Commission as established by the Laws of New York State. Yonkers Raceway Director of Racing Alex Dadoyan confirmed the decrease was approved by the Commission effective Jan. 1, 2021.

The 20% takeout rate on the pick four, pick five, and pick six is the lowest permitted under the laws governing pari-mutuel harness racing in New York State (Pari-Mutuel Wagering And Breeding Law, Article 3: Harness Racing And Breeding, Section 318). The maximum permitted under the law is 30%. The comparable law governing Thoroughbred racing in New York permits rates of between 15% and 25% for the same wagers.

Following the reduction to 20%, Yonkers Raceway’s pick four wager will be the cheapest in New York State, dropping one point below the 21% charged by Tioga Downs. The State’s other four harness tracks that offer a pick four wager set their rate at 25%. Yonkers features two pick four wagers nightly: an early pick four beginning in race one and a late pick four beginning in seven (assuming a 10-race card). The pick four carries a $1 minimum stake.

At 20%, Yonkers Raceway will match Saratoga Raceway for the lowest pick five takeout on New York State harness racing. The State’s other three harness tracks that offer the gimmick charge a 25% rate. Yonkers’ pick five begins in race five nightly and features a 50-cent minimum bet.

Yonkers Raceway will add a pick six to the wagering menu beginning with the 2021 meet opener. The wager, which does not feature a jackpot provision, will carry a $1 minimum stake and will begin in race three on the program. Yonkers Raceway becomes the only harness track in New York State, and one of only a few harness tracks in the country, to offer a pick six.

 

Racetracks in other jurisdictions that are not subject to required the same minimum takeout rates by law are able to offer lower takeout rates on exotic bets. Rates ranging between 10% to 15% are not uncommon.

Yonkers Raceway has applied to begin its 2021 racing season on Monday, Jan. 11 pending approval of the Commission. Under the proposed schedule, the track would conduct racing Monday through Friday with first post time at 7:15 p.m. The SOA of NY is still in the process of negotiating 2021 racing dates with the track in accordance with its contract with management.