NYRA announced Thursday that New York state will implement penny breakage, a horseplayer-friendly measure that pays wagers on NYRA races to the penny rather than using the previous tiered breakage model. The new system will take effect on Saratoga’s closing day.
Starting Monday, September 1, New York will become only the third racing jurisdiction in the country to eliminate breakage on races hosted within the state, joining Washington and Kentucky.
“This is a common-sense reform that will put more money back in the pockets of the horseplayers, which is exactly why NYRA supported and advocated for this policy change,” said Andrew Offerman, NYRA SVP of Racing Operations.
Breakage has historically impacted wagers with smaller payoffs most noticeably, including win, place, and show bets.
Under the current system, a winning bet with a calculated payout of $5.48 would only return $5.40 to the bettor, with the $0.08 in breakage retained by the state or track. Beginning September 1, bettors will receive the full calculated amount to the penny for wagers placed on NYRA’s races.
New York Governor Kathy Hochul signed the legislation authorizing penny breakage into law as part of the FY 2026 New York State Budget. The budget included several provisions highlighting horse racing’s importance to New York’s economy and culture.
Beyond penny breakage, the FY 2026 budget allocated funding for transformational equine safety research and simplified the racing and wagering tax code to position the sport for continued success.
The New York State Gaming Commission (NYSGC) further enhanced the racing landscape on August 25 by adopting rule changes that largely eliminate the practice of coupling entries for horses running under shared ownership.
These new rules are expected to be implemented this fall and will benefit horseplayers by increasing the number of individual betting interests in more than 150 NYRA races annually.
