In the early 1920s, the word "apple" was used in reference to the racing courses in and around New York City. Apple referred to the prizes being awarded for the races. They were important races, the rewards were great.

Based on the research of Barry Popik, he found that a writer for the New York Morning Telegraph, John Fitzgerald, referred to New York City's races "Around the Big Apple." It is rumored that Fitzgerald got the term from jockeys and trainers in New Orleans who aspired to race on New York City tracks, referring to the "Big Apple."

http://gonyc.about.com/cs/atozinde1/a/bigapple.htm
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