Horse racing content creator @BillyHoSports released a new YouTube presentation titled “The Future of Horse Racing: CAW Explained, Tote Upgrades & Industry Solutions,” offering what he called “an intro to what it really is and what it means” for everyday bettors.

In the video, Billy pulled no punches, saying he was motivated after seeing constant chatter online.

“I always get in my X feed moaning and groaning about CAWs and computer assisted wagering,” he explained. “It is a very hot button issue… especially on social media.”

Explaining CAWs and Why Odds Collapse

Billy detailed how Computer Assisted Wagering teams capitalize on the outdated tote system, describing how they “use real-time tote data and high-speed algorithms to fire off massive amounts of bets in the final seconds before that gate goes off.”

He said the effect is visible to anyone who has watched odds drop after the break. “That’s why you see people with their videos going, ‘My horse went from 3-1 to 3-2 in a matter of 8 seconds after the break.’”

Billy stressed that the late odds changes are not caused by rule breaking. “It’s not cheating. It’s the system… the tote system cannot update fast enough,” he said, adding that the tote was “designed in the 1970s” and has had “a few minor updates since then, but none in the 21st century as far as I know.”

A Two-Company Tote Monopoly

Billy argued that the lack of modernization stems from limited competition. “There’s basically a two-way monopoly… Nearly all US racing wagers run through just two tote companies, AM Tote and United Tote,” he said. “United Tote owned by Churchill Downs, Inc.”

He said this dynamic results in “little to no competition… no pressure to innovate or make big upgrades that cost millions of dollars.”

What CAW Teams Receive

According to Billy, CAW groups are not anonymous operations but individual account holders with contractual advantages. They operate through “high volume advanced deposit wagering… They get preferred data feeds. They get tools. They get big rebates on the high volume betting.”

He said they must follow strict rules from ADWs and host tracks, noting, “They cannot cancel bets at all, even after late scratches.” He added that he is “still not 100 percent sure on that particular one.”

Impact on Traditional Handicappers

Billy emphasized how the system affects everyday players. “This is a real thorn in the side of us everyday handicappers,” he said. “We study the past performances… That’s part of the fun.”

By contrast, he said CAW teams operate with “emotionless algorithms that hunt value, firing off bets based purely on math.” He added, “It’s not horsemanship. It’s not sportsmanship. And it takes a lot of the art out of the game for the rest of us.”

Solutions: Fixed Odds, Prop Betting, Modern Tech

Billy pointed to fixed-odds wagering as one potential solution, noting that it could appeal to younger bettors who are familiar with sportsbook-style betting. He highlighted that “Kentucky passed legislation… that gives racetracks the green light to offer this kind of wagering,” but said, “Churchill Downs… [is] in no hurry to implement such options.”

He said these options would “attract younger bettors,” “help the racetrack compete with sports betting apps,” and “directly reduce the computer-aided wagering busting the odds.”

He also suggested prop-style bets and matchups, saying, “How much fun would it be to be able to place wagers on matchups? Horse A versus Horse B… or who’s in the lead at the quarter pole?”

Calling Out Industry Priorities

Billy criticized the sport’s willingness to spend on facilities while technology lags. “Churchill Downs never hesitates to greenlight $90 million renovations or $250 [million] renovations… But when it comes to updating the computer system that runs the tote… suddenly there’s no urgency, there’s no budget, there’s no timeline.”

A Call for Public Pressure

Billy closed the video urging fans to remain vocal. “I think us as viewers can keep pounding social media… maybe the more influencers and the track people… can pound that pavement until things change.”

The full video is available on the Billy Ho Sports YouTube channel.