NJ Exchange Wagering Signed Into Law
On Monday, January 31, Exchange Wagering was signed into law in the State of New Jersey
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A report by nj.com explains that the Exchange Wagering law (A-2926) was signed in along with a law which will allow racetrack permit holders to provide for a single pari-mutuel pool for each running or harness horse race (A-3200).
Exchange Wagering is a form of betting where two or more people place directly opposing bets on the outcome of a race. For example, one bettor can wager on a selected outcome occurring, while another bettor can wager on that same outcome not occurring. The article explains that the identically opposing wagers are matched when a bettor lays a selected outcome at the same price at which another bettor backs that same outcome, with the total amount subject to the lay being wholly commensurate to the total amount subject to the back.
Law A-2926 authorizes the New Jersey Racing Commission to issue a license to the New Jersey Sports and Exposition Authority to establish an exchange wagering system. The report explains that the issuance of the license is subject to the approval of the New Jersey Attorney General.
“This is simply another option and another way to build interest in the races, which can only help the industry as we move forward with a more modern racing model for our state,” A-2926 co-sponsor Assembly Democrat John Burzichelli was quoted as saying.
“By becoming the first state in the country to allow exchange wagering, New Jersey is once again at the forefront of the gaming industry,” said co-sponsor Assembly Democrat Annette Quijano. “This will be a boon for the horse racing industry and the local communities which support it."
“We can never rest easy when it comes to ensuring our horse racing industry can succeed, but this is an aggressive start toward modernizing it and positioning it to succeed,” said Assembly Democrat John McKeon, also a co-sponsor of the bill.
(With files from nj.com)
John Carter I find it
John Carter I find it amusing that you lament how you miss the days rebates from offshore bookmakers. Pinnacle and other sportsbooks are fine for sports wagering because they can balance out the two-team action they get but when it comes to horse racing if you are a big winner you won't be playing there too long. They love to book to net losers and will tolerate you if you are a small winner. However, if you start beating them for any significant amount of money they will firstly eliminate you're 7 per cent rebate away and eventually limit you to how much you can bet on race. If you continue to win they won’t allow you to bet on horse racing at all. Offshore bookmakers are not in the business to lose money as they only book to NET LOSERS. I have many friends who have been chased out of sportsbooks as soon as they start winning any significant amounts of money. The glory days of betting on horses with offshore bookmakers are a myth unless you are a NET LOSER.
To John Wood an industry low
To John Wood an industry low 15% on superfectas and pic 4's is about 5% to high, also win betting and exactas was my main wagers and as we all should know the takeout is far to high in those pools. I do not care about seeded pools in the win 4 because i like single race wagering meaning win, exacta and superfecta wagering. Where i come from we are blocked from the weg rebates. I have clearly drawn a line in the sand and i am never to bet another race or into any pool that does not have a 10% or less take out. In this day and age i demand value for my dollar and will accept nothing less. I give up the races when pinnacle stopped offering the weg and big m product. There 7% rebates made the takeout reasonable and there payouts were always speedy and dependable. How i miss pinnacle.
John Carter I know you have
John Carter I know you have made multiple postings about lower takeouts but the Meadowlands offers an industry low 15 per cent takeouts right now on all its superfectors and win 4 bets along with a 100,000 guarantee on Saturday's card. Moreover, if you are any kind of volume player most track ADW offer rebates to their best customers. That includes WEG with HPI, NYRA and even 4njbets at the Meadowlands. Do some research to see if there are any residency requirements and negotiate a rate with a provider. Most professional players I know have been playing with a 10 per cent or lower takeout for years. It might not sound fair that everyone doesn’t get the same takeout rate. The reality is dollar volumes is what drives a business. You can’t expect someone who buys 10 pens to get the same rate as someone who buys 10,000 pens yearly from a business.
As for exchange betting I wouldn’t bet on it coming and time soon. Even if it is legal in New Jersey it won’t be available anywhere else for commingling purposes. Tracks and horsemen will argue that the 3 per cent takeout that the betting exchange charge doesn’t compensate them enough and will fight exchange betting or slow it down with all the resources they have. That includes putting up surtaxes, withholding track signals and even argueing that exchange betting violates federal prohibitions on bookmaking. The status quo loves its business model of slot franchises and 25 per cent takeouts.
Exchange wagering is a step
Exchange wagering is a step in the right direction if done right but it is only part of the solution. It needs to be combined with tracks offering a 10% takeout in all there pools made available to anyone. Someone like myself would use the exchange wagering for win betting but there is all kinds of people who go to the races that will never be comfortable using this and these people must also be given fair take out rates. Also exchange wagering for win betting is fine but not for superfectas and so on. So if i play a superfecta i want to bet into a 10% house take not a 25 to 30% house hold. So although exchange wagering is a positive step forward i for one will not play the races because of it. If the take out ever gets reduced to a maximum of 10% in every pool combined with exchange wagering that would bring me back to the races.
It appears New Jersey is
It appears New Jersey is implimenting a new wagering format that would allow The Meadowlands to take the same kind of wagers Betfair offers to their customers around the world.
Good for them. This form of wagering will be popular among bettors in North America and the new revenue stream it creates should be huge a few years down the road.
I wonder how long it would take Woodbine to cut through the bureaucratic red tape in Ottawa if they wanted to offer this same type of wagering format?
In reply to It appears New Jersey is by bmw.hancox
In answer to your question
In answer to your question .... Exchange wagering will appear at Canadian Tracks long before it does at US tracks. WHY ? because its already here you can open an account with Betfair and several other exchange companies in Canada today ... Betfair already has marketing agreements with industry partners in Canada. What the stumbling block will be here and in California and New Jersey where the concept is approved by both states is the cost of doing bussiness with the horsemen. So it boils down to how eager are the horsemen to do a deal. As for the comment I will only use exchange wagering for win bets its no good for exotics ...... if I can get my 100 dollars on at 10/1 and iam paid at 10/1 i will take that to the bank anyday of the week rather than try and get 4 winners in a pick four that cost me a 100 dollars. Plus the opportunity to re-lay your bet in running after your horse has broke at the first bend. Its a whole new world folks some research should be done before dismissing out of hand exchange wagering.I had 50 dollars on my horse last night at Western Fair watched the tote board go from 15/1 to 5/1 .... $250 return as opposed to $750 you tell me the better system. Wouldnt bother me if I never played another exotic bet at those win margins.
If horse racing is going to
If horse racing is going to have a future exchange betting with its 3% take out is certainly one of the answers. I know the racing industry in New Jersey has its back against the wall and is ready to try something radical but will other racing jurisdictions try to block its customers from using a betting exchange with surtaxes and witholding track signals. Ultimately, I predict there is going to be a big battle to either stop or slow down exchange betting as it is a threat to the status quo of existing racing jurisdictions charging its customers 25 per cent takeouts and expanding their slot franchises. We won't see betting exchanges in North America till 2013 at its earliest.
Does the racing industry
Does the racing industry still take a 20 percent cut on each bet?