Man Walks into a Reno Sportsbook to Collect $609,464 on the Derby Only to be Offered $35,000

There was a whole lot of drama and controversy surrounding the 2019 Kentucky Derby that took place on Saturday, May 4th, 2019 at Churchill Downs in Louisville, Kentucky. Maximum Security crossed the finish line first but was disqualified after the race for shifting his position impeding the progress of other horses in the Derby and leaving spectators in shock.

As the field rounded the last turn, Maximum Security swerved on the track from the number-two spot to about the number-four or five spot causing interference with the horses War of Will, Long Range Toddy, and Bodexpress. This is the first time in the history of the Kentucky Derby that the winner was disqualified for an on-track infraction. The owners of the 3-year-old colt recently appealed this decision, and the results of the appeal are still pending.

Gambling Controversy:

Apparently, the main event (horse race) of the Kentucky Derby was not the only controversy. The disqualification of Maximum Security caused madness at top sportsbooks across the country. Bettors wagered a record amount of money ($165.5 million) on the Derby this year, which is a ten percent increase from last year's record $149.9 million wagered on the historic race.

A bettor of the 2019 Kentucky Derby, Dr. Steve Friedlander, had quite a dramatic experience after the race a couple of weeks ago. He put down $2,670 worth of bets on the big race and couldn't possibly have imagined the events that followed.

Breakdown of Friedlander's Bets:

Friedlander placed $600 on the number 8 horse, Tacitus, to either win, place or show, and chose a $100 exacta box as well as a $40 trifecta box utilizing the horses numbered 8, 13, 16 and 20. If any of his picks placed first and second, he would cash in the exacta bet and if any placed first, second and third (in any order), he would win the trifecta bet.

When the number 7 horse, Maximum Security, finished the race in first, Friedlander thought that he had lost all of his Derby wagers, but when the horse was disqualified and taken down, the new winning order of horses was revealed: 1st: Country House (number 20)

2nd: Code of Honor (number 13)

3rd: Tacitus (number 8)

The number 20 horse, Country House, happened to be the biggest long shot to finish first in the Derby in 106 years, and Country House took off from the starting gates with the odds of 65 - 1 to win it all. The $100 exacta should have paid $150,480, while the $40 trifecta should pay $459,024. Dr. Friedlander's $2,760 in bets were set to cash out $609,464 at least in his mind, but as it turns out he was in for a big surprise when he went to collect his winnings.

Friedlander's Return to the Tamarack Junction Sportsbook:

"I went up to the ticket writer who wrote my original ticket and I said, I just won a lot of money - $600,000," said Friedlander. The cashier replied, "We don't have that kind of cash here." He thought that meant that the sportsbook didn't have $600,000 there on hand, but then another ticket writer came over to address him. "There's a cap on these," says the writer.

The writer proceeded to walk to the front and exposed Friedlander to a placard. In very fine print it said, 'The maximum payout on an exacta would be 150-1, a trifecta would be 500-1.'

The Tamarack sportsbook is operated by William Hill, and it doesn't possess a pari-mutuel license, which means that it is not protected by a guaranteed percentage payout from the pool. The cashout is limited to $35,000, which is obviously much less than the $600k he assumed that he won.

You would think that a bettor would read the placard prior to placing a wager at this sportsbook, but it turns out, it is not that easy. The maximum payout caps were written on the back of the placard that the sportsbook displays to customers as they walk in. To me, this sounds pretty shady, but when it comes to gambling a lot of money you must educate yourself of the rules and regulations that are specific to that casino or sportsbook.

The Appeal:

"The capping of booked race payouts has been industry standard for decades and allows race books to book without taking on unlimited liability, which no one would want to do," says Grodsky. "The customer has the right to appeal to the Nevada Gaming Control Board, but we are confident that we have fully complied with the relevant gaming regulations and had prominent signage alerting customers to the payoff caps."

Friedlander has filed a formal complaint with the Nevada Gaming Control Board, and he is currently awaiting their ruling on this matter. Unfortunately, it will most likely result in him being paid out the $35,000 capped sum of money that he is entitled to, but nowhere near the amount of money that he expected to win from this year's race.