Archives for February 16, 2019

Is This the Future of Horse Race Wagering?

This article is an oldie but goodie about the combuter robotic wagering that exists in horse racing.

Starting a Computer Robotic Wagering team isn’t for everyone. It takes money, time, and manpower.

”It’s not just one guy. To do this, you have to go out there and get your own math whiz, get an MIT grad to write a program that you then feed tons of race data into and develop your own forecasting model,” said Scherf. “Then you’ve got to test that over a period of a year and refine it and refine it. I’ve always heard it’s going to cost you at least a million dollars to set up.”

Dana Parham, one of the pioneers of computer-assisted wagering, told the International Simulcast Conference in 2010 that it cost him $6 million to run his business with 30 employees.

Clearly, the computers don’t do all the work, but they handle a majority of it. Racing and Gaming Services, a group based on the island of St. Kitts with a U.S. pari-mutuel hub, has about 90 customers who invest in the team’s wagering strategies. Last year, RGS said 60% of its betting was done robotically.

“The point of the computer is to come up with a true or fair market value for each horse,” said Scherf. “If I run this race a thousand times, and this horse will win 500 times, then he should be even money. If he’s 4-5, he’s not a bet. If he’s 6-5, he’s a bet, the computer says. They do that for every horse in the race.”

In an interview with Standardbred Canada, Parham explained the key advantage of computer-driven wagering. It’s not just about speed; the computer takes a long-range, statistical view that …