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Question of the Day - 21 May 2021

Q:

Medina Spirit, the winning horse of the Kentucky Derby, may be disqualified for failing a drug test after the race.  If the winner is disqualified, then what happens to all of the bets placed on the race?  Will any of the payouts be changed?  Or is it too late now?  What if your formerly losing ticket now becomes a winner? Are you out of luck? Has this happened before? How do the sports books handle this situation?

A:

[Editor's Note: This answer is graciously provided by Barry Meadow, author of our Blackjack Autumn, along with several horse-racing books, including his latest, The Skeptical Handicapper: Using Data and Brains to Win at the Racetrack, which has garnered a 4.4 out of 5 in 86 Amazon ratings.] 

Oh, the sadness! Can you imagine how bettors who had Mandaloun at 26-1 feel? Madaloun fell a half-length short to a horse that allegedly was higher than Willie Nelson on a tour bus.  

Do Derby bettors have any recourse?

Uh, no.  

Once the stewards post the results as official, they stand -- no matter if any horses later get disqualified from the purse money. That's the rule in every state.  

And it's a good rule. Otherwise, think of the problems that officials would have to face, trying to claw back all the paid-out winnings from those who cashed and how many people would soil their suits pawing through piles of garbage to try to find tickets that had been losers, but were now magically transformed into winners.

Occasionally, a race book will run a promotion having to do with disqualifications. For instance, in 2019, Twinspires.com offered up to $10 on any winning bet made via their site on Maximum Security, which won the Derby, but was disqualified before the official result was posted. (There was a 20-minute delay between the finish of the race and the announcement of the disqualification, the only time in Derby history that a winner on the track was dq'd). 

The only other time a horse was dq'd from the Derby after the race for a drug violation was in 1968, when Dancer's Image tested positive for phenylbutazone, an anti-inflammatory drug that was legal, except a horse couldn't have any in his system by Derby Day (several years later, the drug was made fully legal). In an odd twist, Dancer's Image next raced in the Preakness and finished third, but was dq'd and placed eighth for bumping another horse during the race.  

Will Medina Spirit join that short and unhappy list? Possibly, but a final ruling won't be available for, probably, months. 

 

No part of this answer may be reproduced or utilized in any form or by any means, electronic or mechanical, without the written permission of the publisher.

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Comments

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  • Kevin Lewis May-21-2021
    Horse pucky
    The doping, which is apparently as common as, well, steroid use in baseball, makes a mockery of the "sport" of horse racing and suggests that the entire sport is corrupt and races are rigged. If you bet on a horse, you're not betting that it will run the best race; you're betting that it will receive the best drugs.
    
    Just another corrupt sucker game where everyone cheats and the little guy has no clue as to what is going on. Capitalism at its finest. So very American.

  • kennethross May-21-2021
    Neigh
    Fortunately, Medina Spirit and the others have horse sense, so they’re smart enough to avoid placing bets on people.

  • That Don Guy May-21-2021
    I realize this is how it works with pari-mutuel based bets...
    ...but does it apply to futures bets (with fixed odds) as well? Do sports books rules say that futures bet results are based on "the official result on the day of the race"?

  • jay May-21-2021
    Sports Betting
    Any time you have betting on people or animals some one wants to rig the game, it comes down to pure greed.
    
    Want a hockey/football/soccer/baseball team to lose, just kidnap a key players family member ? 
    
    You could limit the size of a bet through official channels - the underground bookies would love this or the play would move off shore. Others would use shills to bet for them. 
    
    Why do you think Casino tables have so many cameras - they only need to worry about a dealer and 6-10 players. Compare that to a horse race - you have Jockeys, trainers, nutritionists, spiritual councilors, S*it shovelers, race officials, owners, many many more opportunities and very low oversite in comparison.   
    
    

  • Ray May-21-2021
    Clearly unknowledgable
    Every time somebody is accused of cheating in ANY venture, the typical reaction is that everybody cheats. All of you who are commenting that way are just plain stupid (or intentionally bitchy). But, letting that go for now, the question about payoffs is an important one. It's not just the nightmare of reversing payoffs, it's what it does to those who cashed the tickets. There are so many examples in ALL sports that show that there must be a final gambling determination as to who to pay or not to pay. The simplest example is the George Brett pine tar incident. The umpire called him out on a home run after Billy Martin complained about the amount of pine tar on Brett's bat. That ended the game with the Yankees winning. All Sports bets were paid on that basis. Later, on appeal, the commissioner reinstated the home run and the Royals took the lead on it and finished the game (weeks later) and won. But nobody had to return the payoff,

  • [email protected] May-21-2021
    Similar examples
    would be people who bet on the Tour de France only to have the winner disqualified years later, or people who bet on Olympic events only to have the winner disqualified days, weeks, or months later.  The only fair thing is to have a set time to determine the winner and payoff, which is what the sports books do.  While those who bet on the eventual winner may be disappointed, those who bet on the original winner are pretty happy.  Since racing is pari-mutual it's the same amount of money distributed, just to different people.  Everyone know going in that this is a rare, but real possibility.

  • DonaldM87801 May-21-2021
    Wow!
    So...I never thought of this before. What I believe I am learning is that horse racing establishments have a system/algorithm that calculates every single possible payout combination on a race to determine the "odds" that will be paid out from the available payout pool. I understand the statistical approach of having 20 variables, but when you add in the odds and associated dollar amount for each probability (WPS, Exacta, Quinella, Trifecta, Daily Doubles,....quite an accomplishment for a field of 20 horses. Thanks for the education.

  • Derbycity123 May-21-2021
    Was there cheating?
    Several years ago I has a buddy bet on the Derby the day before when he was at Churchill. I won the trifecta. So the next week on Thursday I left work early and went to the track. I cashed my ticket and there was two races left. I bet on the second from last and won. Then they put up the odds for the last race. One horse was 1-5 so super favorite. I looked in the program and that horse had never won and the last race was DNF Did Not Finish. The race before last by 20 lengths, before that DNF, before that last by 30 lengths. Looking at the win pool the horse had 5000 bet on him. Slowly money came in on other horses and the odds went up to 1-1 then 2-1 and finally 20-1. The race is run and the horse wins. So someone one knew something and put 5000 on him early in the day. Which is why he was the super favorite when the pool started. Not sure if there was cheating or if the found out what was wrong with the horse and fixed it. But it was the oddest thing I ever sen at the track. 

  • Jeff May-21-2021
    What's so wonderful about a drug-free horse?
    The answer, it seems to me, is to make drugging the horses legal. Then, the race would be about which drugged horse was faster than the other drugged horses. Who was best at medicating a horse would be a new variable that horse handicappers would have to consider.
    
    Animal cruelty should not be an issue. These horses are extremely valuable, so harming them by over-medicating them would be limited by the universal human motivations of self-interest and greed.

  • AL May-21-2021
    Dubious claim
    1. I have to take exception with the phrase "a horse that allegedly was higher than Willie Nelson on a tour bus." Says WHO? The drug in Medina Spirit was not a stimulant or mind-altering drug (what Willie Nelson would get high on), nor was it a performance-enhancing drug. It was essentially a painkiller that merely enabled the horse to be equally competitive as the other horses, nor more juiced up than them.
    2. Yes, lots of horses are given lots of drugs, just like lots of humans take them. Which drugs, and in which amounts, are legal is something that is universally known, and abuse is relatively rare. The sport is not a free-for-all like the crime situation in Chicago in the 1920's/1930's.
    3. It's better to avoid using the word "doping" generally.  "Doping" is a specific practice in which a human has some of his blood withdrawn, then his system replenishes it, and then the removed blood is injected back into the person, causing extra-rich blood. This was not done to Medina Spirit.

  • AL May-21-2021
    Betting pools
    4. To address what one poster said: There is not just 1 single pool out of which all bets (Win, Place, Show, Exactas, etc.) are paid. Each kind of bet has its own pool. There is a Win Pool, a Place Pool, a Show Pool, an Exacta Pool, a Trifecta Pool, a Superfecta Pool, pools for Daily Doubles, and separate pools for any other kind of bet.
    5. Most betting nowadays is not done at the track, but through the Internet (most common) or smartphone app or telephone call to the racing company. So most bettors don't have physical tickets to deal with. All bets made via one of those 3 other ways are recorded on computer right when they are made, so refunds, grab-backs, later payouts, etc. are all possible. What could happen is all payouts could be put "in escrow" until post-race drug testing is done. This would require the betting companies to set up such a system, and the bettors to agree to the program. I personally doubt that this will happen, but it's possible and it would solve this problem.

  • DonaldM87801 May-22-2021
    Thanks Al
    The separate prize pools make more sense and would be a lot more manageable to predict.

  • DonaldM87801 May-22-2021
    Al...I have questions...
    So..if if I bet 1-4-7 Trifecta box at $1.00, I get X odds. But if I bet 1-4-7 Trifecta box at $2.00, do I not get twice the payout wothout doubling the payout pool?