The RCI Pari-Mutuel Auditors Committee has proposed a modification to ARCI-004-024.
Description of the Issue: Racing associations, by rule, are required to offer place and show wagering dependent on field size. When a prohibitive favorite is in a short field, the possibility of having minus pool in either the place, or more commonly show, wagers becomes a distinct possibility creating a financial loss to the racing association.
With simulcasting and ADW wagering, when there is a prohibitive favorite in a race with four or five betting interests, it has become normal for one or more extremely large wagers to be placed on the favorite, either as a place or more common to show. With the guarantee of either a five or ten cent return on each dollar, the racing association takes at time large losses as the amount wagered on the other betting interests does not cover the winning wagers.
By amending the rule from “shall offer”, to “may offer”, it allows the racing association to make a business decision on which pools it may or may not offer. This change will minimize negative pools and alleviate what has been a problem for racing associations.