Derby Wars

[Andy Asaro]

http://www.drf.com/news/stronach-gro...ach-settlement

Excerpt:

The settlement will defuse a dispute between the two sides that resulted in The Stronach Group filing a lawsuit against Derby Wars in early 2015 alleging that the company had violated provisions of the Interstate Horseracing Act, a 1978 federal law, by using races from The Stronach Group tracks in online tournaments without the company’s approval. It also will allow both sides to avoid a trial that was scheduled to start later this month.

The Stronach Group had won a major victory and bargaining point against Derby Wars in May, when a judge ruled that Derby Wars should be considered an offtrack betting outlet and was subject to the terms of the Interstate Hosreracing Act, which forms the regulatory backbone for interstate simulcasting. That act requires tracks, their horsemen, and racing commissions to approve simulcasts before they can be offered for wagering by an out-of-state site.
=======================

Anyone know if the Interstate Horse Racing Act has ever been updated since 1978?

[JustRalph]

Some settlement. They pay out 500k and Stronach basically is a second version of "the house"

And Stronach gets to set the price.

Why didn't Stronach just buy the company?

[Immanuel Kant]

Originally Posted by JustRalph

Some settlement. They pay out 500k and Stronach basically is a second version of "the house"

And Stronach gets to set the price.

Why didn't Stronach just buy the company?

My guess is that he did offer to buy the company........at 10 cents on the dollar

[cato]

My experience with Derby Wars has been great for three years and I am willing to give them the benefit of the doubt for being tight lipped when it comes to managing litigation. It looks like they received an adverse ruling a few months ago that forced them into settlement negotiations that were only recently concluded. They probably received a daily message from their attorneys with a reminder to NOT TALK ABOUT PENDING LITIGATION! So there was a week or two where we did not know exactly what was going on. Now we do.

They will be offering limited games for the immediate future while they are negotiating with tracks to come up with an agreement with regard to a split of revenues (I probably did not word that correctly but it's close enough) and as they reach those agreements they will add games including those tracks.
So the good news is that if you are tired of games covering only BEL and GP and SA (etc), I believe the universe of games will be offered for more tracks (and I assume they will continue with the major tracks).

So remain calm. It's going to work out.

Like I said earlier I've had a great experience with them, they have been responsive to emails, complaints and suggestions over the years and they seem to be guys who love the business and are trying to do the right thing. They drew the s**t sandwich in being sued and then getting a bad court ruling - but it appears they have survived and will be okay.

So I will likely be more supportive when they start rolling games out again. I hope some of you who are upset with them will re-consider.

Best, Frank

[Mulerider]

Originally Posted by JustRalph

Some settlement. They pay out 500k and Stronach basically is a second version of "the house"

And Stronach gets to set the price.

Why didn't Stronach just buy the company?

From the Paulick Report article:

"'We want to put a pricing model that works for both sides,' said Scott Daruty, president of Monarch Content Management, a division of The Stronach Group that handles simulcast matters for the company...'I don't think it will be more than half and it won't be less than a 30 or 40 percent (of a contest operator's takeout),' Daruty said in reference to how much the Stronach Group may seek in future negotiations with handicapping contest operators."


Only 30%-50+%? Sure, that pricing model will work for both sides. Good grief.

[Suffolk OTB]

Stronach probably wants the same return/piece of the takeout they get from a normal ADW.

It looks like Derby Wars "takeout" is around 7-8% on two player games and ~15% on multiplayer games. That will probably need to go up in order to get a pricing model more in line with an ADW.

Unless Derby Wars is willing to give up their profits so that Stronach can make their profits, I'm guessing it might cost $12 instead of $11 to play a $20 one on one game in the future.

[toddbowker]

Originally Posted by Andy Asaro

Anyone know if the Interstate Horse Racing Act has ever been updated since 1978?

Yes, in 2000. That's when it was amended to specifically include bets taken between States by "telephone or other electronic media".

Essentially this was just clarifying that account wagering was allowed under the Act.

The Justice Department wasn't all that happy about it, but Clinton signed it anyway.

[Andy Asaro]

Originally Posted by toddbowker

Yes, in 2000. That's when it was amended to specifically include bets taken between States by "telephone or other electronic media".

Essentially this was just clarifying that account wagering was allowed under the Act.

The Justice Department wasn't all that happy about it, but Clinton signed it anyway.

Thanks.

[trifecta]

I got an email today from Derby Wars with this message:

PLAYER STATE UPDATE

"With the recent ruling change, DerbyWars is now able to offer contests to residents of NY, AZ, WA, LA and IN. Let your friends know!"

[Jeff P]

bloodhorse.com article by Frank Angst | June 30th 2017

Several Tracks Reach Deals With Contest Site Derby Wars:
http://www.bloodhorse.com/horse-raci...ite-derby-wars

Horse racing contest site DerbyWars.com announced June 30 it reached partnership agreements with several tracks and racing associations that will allow the site to use those racing signals as part of its handicapping contests.

The agreement comes just over two weeks after Derby Wars owner Horse Racing Labs agreed to pay The Stronach Group at least $500,000 to resolve a lawsuit brought against the contest site, which had used signals from Stronach-owned tracks without permission or compensation.

On Friday Derby Wars said partnership agreements were reached with New York Racing Association, Monmouth Park, Meadowlands, Ellis Park, Kentucky Downs, Louisiana Downs, and Fairmount Park. The agreements include revenue-sharing with the tracks and horsemen for use of their races in contests at DerbyWars.com, as well as video and data sharing opportunities to enhance customer experience.

-jp

.

[ReplayRandall]

Originally Posted by Jeff P

bloodhorse.com article by Frank Angst | June 30th 2017

Several Tracks Reach Deals With Contest Site Derby Wars:
http://www.bloodhorse.com/horse-raci...ite-derby-wars
-jp.

It's funny how Derby Wars reached partnership agreements with the New York Racing Association, Monmouth Park, Meadowlands, Ellis Park, Kentucky Downs, Louisiana Downs, and Fairmount Park, paid a $500K settlement, and YET none of those are Stronach-owned tracks......Hilarious..

[davew]

I put in $100 and will see how long it lasts - I now am only going to play the $4.50 survivor games. I like picking horses to show rather than going for a 'price'.

[PointGiven]

I'll give them another shot starting in January 2018. I enjoyed it and did really well I thought the year I played. But it can be very aggravating. Always some clowns in the games.

[Afleet]

Originally Posted by PointGiven

I'll give them another shot starting in January 2018. I enjoyed it and did really well I thought the year I played. But it can be very aggravating. Always some clowns in the games.

what did the clowns do to be labeled clowns?

[Lemon Drop Husker]

Originally Posted by Afleet

what did the clowns do to be labeled clowns?

Win