Betfair US, in partnership with New Jersey’s Monmouth Park Race Track will offer the first exchange-wagering platform in the U.S., allowing New Jersey bettors to place wagers on horse racing events, as soon as May 10, 2016.
New Jersey regulators, along with the New Jersey State Racing Commission, have given final approval to the New Jersey Sports & Exposition Authority (NJSEA) to issue an agent license for exchange wagering services to Betfair US, and an agent license for exchange wagering management to Monmouth Race Track operators; Darby Development.
After acquiring the horse race broadcasting network, Television Games Network in 2009, Betfair started lobbying for state legislators to endorse exchange wagering. These efforts to gain regulatory approval in the United States became successful in only 2 states – California and New Jersey.
Exchange wagering was approved by the State of New Jersey back in 2011, and offers an alternative to the traditional means of pari-mutuel betting. This new development has the potential to dramatically affect the horse racing industry if the predicted outcome is realized. Betfair US has been licensed to provide these services in the state since November 2015.
Disagreements between Betfair, the horsemen, and racetracks have complicated efforts to launch exchange wagering services in the State of California.
Punters can exchange wagers either in person at the race track, or online on desktop computers or mobile devices provided they are over the age of 21, within the State of New Jersey borders, and placing their bets through a channel approved by the state.
The service is expected to appeal to a younger target audience by embracing technology for horse racing, and is expected to create new revenue streams. Marketing research of the service already available in the UK and other markets proved that exchange wagering will draw new customers, and increase horse racing revenue dramatically.
Exchange wagering offers bettors the ability to wager both before and during a horse race. For example, if someone does not agree with the posted odds before the race begins, they can place an electronic offer to place their bet with different odds. After a race starts, if a person’s horse gets off to a slow or bad start, or looks too tired to race, they can choose to bet against their horse instead.
In the UK, exchange wagering allows propositions to be posted through the exchange platform anytime up until the race is officially declared, however, New Jersey rules prohibit in-race betting once the first horse crosses the finish line.
Supporters of exchange wagering expect the service to strengthen interest in horse racing by offering new ways to wager at a reasonable cost of around 5% of the winnings, as opposed to pari-mutuel rates of around 20%.
The exchange wagering market allows bettors more flexible options to place a bet before a race, as well as during the race by offering the chance to stay engaged in the wagering process throughout the entire race. While many longtime horse players may be hesitant to try these new options, there will be many teaching tools offered on the Betfair website to educate the public.
