Breakage

What is "breakage" as referred to on the home page and leaderboards?

Breakage is simply "extra" entries that are sold to a contest, but that do not amount to enough entries to award an additional package or other prize.

Example: A contest awards an NHC package per every 50 entries participating. The contest attracts 64 entries. Thus, there are 14 extra, or "breakage" entries in that contest.

How does HorseTourneys handle breakage entries sold?

HorseTourneys.com's policy is to ALWAYS return entry fees for breakage entries back to players. Generally speaking, any breakage entries will be returned to players participating in any given contest on the basis of refunding fees for breakage entries back to the top non-winners in a contest (players that did not win the top prize(s) available in that contest).

For example: A Horse Player World Series contest with a $50 entry fee awards a prize per every 25 entries participating. The contest gets 31 entries, thus there are six (6) entries of breakage. The top six non-winners at the conclusion of the contest will receive $50 refund credits (equal to the entry fee) once the contest has been declared official.

Are there any exceptions to this breakage policy?

The exception is when HorseTourneys extends qualifying parameters in order to award an additional prize or package. HorseTourneys will do this from time to time when entries are very close to meeting the threshold to award another prize or package. In those cases, HorseTourneys ends up paying for the cost of those entries needed to meet the next threshold. As a result, HorseTourneys has accumulated "negative" breakage.

When HorseTourneys accumulates negative breakage, that breakage amount in dollars is updated on the home page of the site in the "Latest Update" section. When HorseTourneys has a negative breakage balance, any breakage entries from additional contests may be used to offset this negative balance BEFORE any refund credits are applied. Typically, HorseTourneys will withhold half the amount of breakage from a contest and apply it to the negative breakage balance before returning breakage refunds.

Once HorseTourneys returns to "even" breakage, full refund credits for any given contest will again be applied.

BREAKAGE DISTRIBUTION PARAMETERS (as of Feb. 4, 2013):

1-5 breakage entries: all top non-winners receive 1x entry refund
6-10 breakage entries: top two non-winners receive 2x entry refund; remainder receive 1x entry refund
11-20 breakage entries: top one non-winner receives 3x entry refund; next two receive 2x entry refund, remainder receive 1x entry refund
21-30 breakage entries: top two non-winners receive 3x entry refund; next three receive 2x entry refund, remainder receive 1x entry refund
30+ breakage entries: top three non-winners receive 3x entry refund; next four receive 2x entry refund, remainder receive 1x entry refund
 

If you have any questions on this breakage policy, please feel free to email us at support@horsetourneys.com.