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U.S. Magistrate Judge James M. Wicks recommended dismissing a horseplayers’ lawsuit over computer-assisted wagering in an Oct. 23 report, finding the plaintiffs had not adequately alleged injury or harm traceable to the defendants. The recommendation calls for dismissal with prejudice, but District Court Judge Joan M. Azrack must still consider it.
According to Ray Paulick’s report published by Yahoo Sports, the case was filed in October 2025 in the U.S. District Court for the Eastern District of New York by Colorado resident Ryan Dickey. Six additional horseplayers were named in the first amended complaint.
Horseplayers challenged late computer-assisted bets
The plaintiffs alleged that major racing entities coordinated to benefit computer-assisted wagering, or CAW, players at retail bettors’ expense. Their complaint claimed that high-volume bets placed at the last second, after algorithms searched wagering pools for value, reduced the payoffs everyday horseplayers expected when placing wagers. CAW players also reportedly received substantial rebates.
The complaint alleged violations of the Racketeer Influenced and Corrupt Organizations Act, as well as conversion, unjust enrichment and civil conspiracy. Those allegations are not findings of wrongdoing.
Named defendants included The Stronach Group, Stronach Group Services, AmTote International, Elite Turf Club, Churchill Downs Inc., United Tote, the New York Racing Association and Racing and Gaming Services.
Judge found injury and traceability allegations insufficient
The defendants argued that no plaintiff identified a specific winning wager that paid less than expected. Wicks agreed that the plaintiffs failed to meet a “modest threshold,” writing that they had not alleged any “coherent injury whatsoever.”
Wicks said the plaintiffs did not plead that they had won a single bet. He also explained that CAW betting does not reduce the winnings of someone who backed a losing horse.
Even if injury had been adequately alleged, Wicks said the complaint would fail on causation or traceability grounds.
The parties have 14 days from the Oct. 23 filing to submit written responses. Whether Azrack will adopt the recommendation remains unresolved.
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Source: As reported by Yahoo Sports.
