Kentucky Derby betting integrity harmed by computer-assisted wagering

Placing a bet on the Kentucky Derby has the same appeal, innocence even, as filling out an NCAA Tournament bracket during March Madness. Picking winners can be based on knowledge or, in the case of many, based solely on liking the horse’s name or jockeys silks, in the same way choosing a basketball team for its mascot or colors sometimes yields success. There’s something building on the horizon that could ultimately take the fun out of it.

There’s no joy in finding out the game is rigged. Computer-assisted wagering (CAW) barely caused a blip two decades ago, but improved technology, and an increase in volume, threatens to destroy the integrity of betting on horse racing by allowing what's akin to insider trading to thrive. A level playing field is all we ask for, and that is truly becoming a facade with the CAW groups taking over.

Velocity, which is owned by Churchill Downs Inc. , is one of the groups of high-volume bettors using CAW. The biggest team is believed to be the Elite Turf Club, owned by the New York Racing Association and The Stronach Group , the latter of which owns Gulfstream Park and Santa Anita Park.

It’s a secret society of sorts, existing and operating outside of perusing a Daily Racing Form to handicap races. They’re tapping into algorithms and artificial intelligence to process data and fluctuations in seconds, then make automated bets on a grand scale. And their ability to wait until the last millisecond to drop bets in odds-changing sums has skewed the scales in their favor.