During its meeting Thursday, November 16 at Hollywood Park, the California Horse Racing Board passed a set of rules pertaining to the legalization of exchange wagering in the state.

As a report by the North County Times explains, the CHRB will now take the rules to California's Office of Administrative Law.

In the article, John Rubinstein, the Del Mar Thoroughbred Club's senior VP of Development, gave a Coles Notes version of exchange wagering.

“The easiest way I can describe it is take (last year's running of) the Pacific Classic (stakes race) for example. If I thought Game On Dude was going to win the Pacific Classic and you thought Game On Dude was not going to win the Pacific Classic, then the exchange operator would match us up. It would be in cyberspace, of course, but you would have all the other horses in the field, and I’d have Game On Dude. You would have won because Game On Dude didn’t win. If one person is backing the horse and thinks it’s going to win, and that’s how betting at the track is right now, then he bets on a horse to win. But the second piece, the exchange wagering, allows you to lay a horse, or get the rest of the field against that horse.”

(With files from the North County Times)