A proposed class-action lawsuit filed in New York’s Eastern District Court accuses major horse racing industry players of colluding to rig betting outcomes through computer-assisted wagering (CAW) schemes. The suit, brought by plaintiff Ryan Dickey and others, alleges that wealthy bettors using AI-driven algorithms and privileged access exploit ordinary bettors by placing high-volume, strategically timed bets that shift billions of dollars to a select few insiders, including racetracks and betting platform operators. Defendants named include Elite Turf Club (majority-owned by Stronach Group and NYRA), Velocity Wagering (owned by Churchill Downs), and AmTote, a Stronach subsidiary and the largest North American betting processor.

The lawsuit seeks damages under the RICO Act, claiming these CAW operations manipulate odds and benefit from lower fees and faster bet placements. In response, Elite Turf Club and AmTote have called the lawsuit “meritless,” defending CAW as a regulated, transparent part of the wagering system subject to audits and state oversight, and denying any unfair advantages. Churchill Downs has not yet commented on the litigation.