cheesebeast
30-10-2002, 05:15
Suspicious bet under scrutiny
By MATT HEGARTY
NEW YORK - The New York State Racing and Wagering board is investigating a $3
million payday by a bettor who made suspicious Breeders' Cup Pick Six wagers through
Catskill Off-Track Betting Corporation in New York, board officials said Monday.
According to several officials investigating the incident, the winning wagers used only one
horse in each of the first four races of the pick six Saturday at Arlington Park, including
two longshots, and then used the entire fields in the last two races.
At issue is whether the bettor, acting alone or in a group, made the winning bets after
one or more races in the Breeders' Cup pick six sequence were run. Officials said the
investigation will look at whether the computer security information, which records the
times at which bets are placed, was altered.
The bettor, identified by a Catskill official as a 29-year-old Maryland resident, held the
only winning tickets on the pick six, which were placed through a Catskill OTB
telephone account. The Catskill OTB is one of the state's six regional offtrack wagering
corporations.
The bettor made his play in a single $12 denomination ticket - which translates into six
winning $2 tickets - at a cost of $1,152. Each winning $2 ticket was worth $428,392
for a total $2,570,352. The bettor also had 108 consolation tickets with five of six
winners, each of which returned $4,606.20, for a total of $497,469.60. The entire
payday was worth $3,067,821.60.
Officials of the New York State Racing and Wagering Board said they launched the
inquiry after learning about the bets on Sunday.
"It is an unusual circumstance that you would want to look at no matter where it
happened," said Stacy Clifford, a spokeswoman for the board. "We have frozen the
tickets, and we're taking a very hard look at it."
Clifford would not discuss details of the investigation but said that "the proper law
enforcement authorities" would be contacted if any evidence indicates fraud.
Breeders' Cup has withheld payment to Catskill pending the results of the investigation.
Officials for the Breeders' Cup and the National Thoroughbred Racing Association,
which merged with Breeders' Cup last year, have told New York regulatory authorities
that they will assist in any investigation.
"Our obligation in this case clearly is to protect the customer and the integrity of the
process," said Breeders' Cup president D.G. Van Clief.
Officials for Autotote, the tote provider for Catskill and Arlington, denied on Monday
that any wagering information had been manipulated or that the security of their system
had been compromised.
OTB Official calls bettor legitimate
Donald Groth, the chairman of Catskill OTB, said the winning bettor wanted to remain
anonymous. Groth said that "there is nothing to indicate that this was anything but a very
good day for our customer."
"I know why you're suspicious, but that's not my job," Groth said. "I'm familiar enough
with the customer that I believe this is legitimate."
Groth relayed a message to the bettor, seeking a comment, but the message was not
returned.
A variety of issues raise suspicions about the winning wager, according to a number of
racing officials and professional gamblers. The wager was too expensive for an amateur,
they said, and too naive in its structure for anyone but a novice. Other than fraud, the
only way to explain the win, gamblers said, was blind luck of the most phenomenal
variety.
David Cuscuna, a professional gambler who specializes in pick six and other exotic bets,
said it didn't make sense for a gambler to bet nearly $1,200 on a race by using the
combination that was used on the winning ticket.
"The whole idea of this, of a guy that puts down a $12 multiple, 1 by 1 by 1 by 1 by all
by all bet, that has the first four winners, which includes a $28 horse and a $54 horse -
good lord, it's not even a point of discussion," Cuscuna said. "This is not a real bet."
Data indicates bets placed early
Groth said that he has personally checked the time stamps for the telephone calls in
which the pick six wagers were placed. "They were placed beforehand," he said.
Pick six wagers were required to be placed before the fifth race on the card, the Mile,
which was the first race in the pick six and which went off at 1:37 p.m. Central time.
Louis Skelton, the director of technical services for Autotote, said on Monday that
technicians had reviewed all pertinent data related to the wagers. He said the data
indicated that two bets - the $12 base wager that cost $1,152 and a second $2 base
wager, which cost $364 and used the entire field in the first two races and one horse in
the final four legs - were placed 20 minutes before post time.
"From a systems perspective, we're 100 percent certain that the pools were closed and
that this gentlemen made his bets 20 minutes before post time of the [first leg]," said
Brooks Pierce, Autotote's president.
First bets under new account
The bettor did not appear to be a frequent customer of Catskill OTB. Two racing
officials and one official with Catskill OTB said that the bettor opened the account in the
past two weeks and that the pick six bets were the first wagers made through the
account.
The winner of the first leg of the pick six, the Mile, was Domedriver, who paid $54. The
second leg, the Sprint, was won by the favorite, Orientate ($7.40), and the third leg, the
Filly and Mare Turf, was won by Starine, who paid $28.40. The winner of the fourth
leg, the Juvenile, was Vindication, who paid $10.20.
In the last two races, the pick six was filled out by High Chapparal, the 4-5 favorite in
the Turf, and Volponi, who paid $89 as the longest shot on the board in the Classic.
If a short-priced horse such as Medaglia d'Oro or War Emblem had won the Classic
instead of Volponi, the Catskill bettor might not have attracted any attention. In that
case, the chances would be greater for other winning tickets, obscuring the bettor's good
fortune. As it turned out, Volponi's upset victory turned the spotlight on the Catskill
tickets, they only ones with the right combination - six times over.
Paul Berube, the president of the Thoroughbred Racing Protective Bureau, said on
Monday that he would not comment on the investigation and would neither confirm nor
deny whether the bureau has been asked to participate in the investigation. The bureau
was set up by racetracks to conduct investigations into allegations of fraud and other
misconduct in racing.
"It's unfortunate these things get out before all the facts are known, and I would assume
that there is a fair amount that we don't know right now," Berube said.
What happens if bet is voided?
If the Catskill wagers were voided, then one possibility for the Breeders' Cup would be
to redistribute the entire pool to people holding 5-of-6 tickets. Bettors who had
consolation tickets had to sign IRS forms to cash their wagers, so it would be possible to
contact them and increase their payouts.
If the pools were recalculated to pay off on the 78 other consolation tickets, the payoff
for each ticket would be just under $33,000. Recalculating the pool to pay off on 4-of-6
would be difficult because some tickets might have already been discarded.
Even in this early stage, racing officials and gamblers disagreed on what the long-term
ramifications of the investigation would be. Gamblers said that there would be increased
fears of mutuel pools being manipulated. But officials said the investigation proves that
racing has enough checks and balances in place to ensure integrity.
"It's good for the industry that they are taking the time to fully verify all this," said Pierce,
the president of Autotote. "It means the system is working."
By MATT HEGARTY
NEW YORK - The New York State Racing and Wagering board is investigating a $3
million payday by a bettor who made suspicious Breeders' Cup Pick Six wagers through
Catskill Off-Track Betting Corporation in New York, board officials said Monday.
According to several officials investigating the incident, the winning wagers used only one
horse in each of the first four races of the pick six Saturday at Arlington Park, including
two longshots, and then used the entire fields in the last two races.
At issue is whether the bettor, acting alone or in a group, made the winning bets after
one or more races in the Breeders' Cup pick six sequence were run. Officials said the
investigation will look at whether the computer security information, which records the
times at which bets are placed, was altered.
The bettor, identified by a Catskill official as a 29-year-old Maryland resident, held the
only winning tickets on the pick six, which were placed through a Catskill OTB
telephone account. The Catskill OTB is one of the state's six regional offtrack wagering
corporations.
The bettor made his play in a single $12 denomination ticket - which translates into six
winning $2 tickets - at a cost of $1,152. Each winning $2 ticket was worth $428,392
for a total $2,570,352. The bettor also had 108 consolation tickets with five of six
winners, each of which returned $4,606.20, for a total of $497,469.60. The entire
payday was worth $3,067,821.60.
Officials of the New York State Racing and Wagering Board said they launched the
inquiry after learning about the bets on Sunday.
"It is an unusual circumstance that you would want to look at no matter where it
happened," said Stacy Clifford, a spokeswoman for the board. "We have frozen the
tickets, and we're taking a very hard look at it."
Clifford would not discuss details of the investigation but said that "the proper law
enforcement authorities" would be contacted if any evidence indicates fraud.
Breeders' Cup has withheld payment to Catskill pending the results of the investigation.
Officials for the Breeders' Cup and the National Thoroughbred Racing Association,
which merged with Breeders' Cup last year, have told New York regulatory authorities
that they will assist in any investigation.
"Our obligation in this case clearly is to protect the customer and the integrity of the
process," said Breeders' Cup president D.G. Van Clief.
Officials for Autotote, the tote provider for Catskill and Arlington, denied on Monday
that any wagering information had been manipulated or that the security of their system
had been compromised.
OTB Official calls bettor legitimate
Donald Groth, the chairman of Catskill OTB, said the winning bettor wanted to remain
anonymous. Groth said that "there is nothing to indicate that this was anything but a very
good day for our customer."
"I know why you're suspicious, but that's not my job," Groth said. "I'm familiar enough
with the customer that I believe this is legitimate."
Groth relayed a message to the bettor, seeking a comment, but the message was not
returned.
A variety of issues raise suspicions about the winning wager, according to a number of
racing officials and professional gamblers. The wager was too expensive for an amateur,
they said, and too naive in its structure for anyone but a novice. Other than fraud, the
only way to explain the win, gamblers said, was blind luck of the most phenomenal
variety.
David Cuscuna, a professional gambler who specializes in pick six and other exotic bets,
said it didn't make sense for a gambler to bet nearly $1,200 on a race by using the
combination that was used on the winning ticket.
"The whole idea of this, of a guy that puts down a $12 multiple, 1 by 1 by 1 by 1 by all
by all bet, that has the first four winners, which includes a $28 horse and a $54 horse -
good lord, it's not even a point of discussion," Cuscuna said. "This is not a real bet."
Data indicates bets placed early
Groth said that he has personally checked the time stamps for the telephone calls in
which the pick six wagers were placed. "They were placed beforehand," he said.
Pick six wagers were required to be placed before the fifth race on the card, the Mile,
which was the first race in the pick six and which went off at 1:37 p.m. Central time.
Louis Skelton, the director of technical services for Autotote, said on Monday that
technicians had reviewed all pertinent data related to the wagers. He said the data
indicated that two bets - the $12 base wager that cost $1,152 and a second $2 base
wager, which cost $364 and used the entire field in the first two races and one horse in
the final four legs - were placed 20 minutes before post time.
"From a systems perspective, we're 100 percent certain that the pools were closed and
that this gentlemen made his bets 20 minutes before post time of the [first leg]," said
Brooks Pierce, Autotote's president.
First bets under new account
The bettor did not appear to be a frequent customer of Catskill OTB. Two racing
officials and one official with Catskill OTB said that the bettor opened the account in the
past two weeks and that the pick six bets were the first wagers made through the
account.
The winner of the first leg of the pick six, the Mile, was Domedriver, who paid $54. The
second leg, the Sprint, was won by the favorite, Orientate ($7.40), and the third leg, the
Filly and Mare Turf, was won by Starine, who paid $28.40. The winner of the fourth
leg, the Juvenile, was Vindication, who paid $10.20.
In the last two races, the pick six was filled out by High Chapparal, the 4-5 favorite in
the Turf, and Volponi, who paid $89 as the longest shot on the board in the Classic.
If a short-priced horse such as Medaglia d'Oro or War Emblem had won the Classic
instead of Volponi, the Catskill bettor might not have attracted any attention. In that
case, the chances would be greater for other winning tickets, obscuring the bettor's good
fortune. As it turned out, Volponi's upset victory turned the spotlight on the Catskill
tickets, they only ones with the right combination - six times over.
Paul Berube, the president of the Thoroughbred Racing Protective Bureau, said on
Monday that he would not comment on the investigation and would neither confirm nor
deny whether the bureau has been asked to participate in the investigation. The bureau
was set up by racetracks to conduct investigations into allegations of fraud and other
misconduct in racing.
"It's unfortunate these things get out before all the facts are known, and I would assume
that there is a fair amount that we don't know right now," Berube said.
What happens if bet is voided?
If the Catskill wagers were voided, then one possibility for the Breeders' Cup would be
to redistribute the entire pool to people holding 5-of-6 tickets. Bettors who had
consolation tickets had to sign IRS forms to cash their wagers, so it would be possible to
contact them and increase their payouts.
If the pools were recalculated to pay off on the 78 other consolation tickets, the payoff
for each ticket would be just under $33,000. Recalculating the pool to pay off on 4-of-6
would be difficult because some tickets might have already been discarded.
Even in this early stage, racing officials and gamblers disagreed on what the long-term
ramifications of the investigation would be. Gamblers said that there would be increased
fears of mutuel pools being manipulated. But officials said the investigation proves that
racing has enough checks and balances in place to ensure integrity.
"It's good for the industry that they are taking the time to fully verify all this," said Pierce,
the president of Autotote. "It means the system is working."