Finally, some horseplayers in the United States will have a chance to wager on horseracing bets. This is made possible by the introduction of fixed-odds betting for horse races. A company going by the name Pointsbet will become the opening site that offers fixed-odds betting in New Jersey.
The introduction of fixed-odd betting does not aim at replacing the well-known pari-mutuel betting. Instead, it is intended that pari-mutuel will be offered as an extra service. The company behind this move hopes that more states will accept this move by their regulators' approval.
Many bills have been presented within many states in America to allow Fixed-odds betting on races. Finally, the bill seems to have made its way into New Jersey’s betting scene, especially for horse racing. The bill gained undivided approval in the General assembly and committees.
If everything goes as planned, it would also be incorporated into other betting services.
What is the Difference Between Pari-Mutuel and Fixed-Odds Betting?
When you bet on Pari-mutuel, the odds keep changing subsequently on the wagers. On the other hand, fixed-odd betting lets the players know their expected payout from their winning bets. The odds are still adjustable, but the current price will be locked when obtaining the ticket.
That eradicates the excellent hand that "whale" gamblers usually get when they wager using vast amounts of money. They used to depend on the algorithms to show them the right time to bet before the race is concluded. This had a higher chance of changing the pari-mutuel odds.
Will Fixed Odds Have Any Benefits to New Jersey’s Horse Racing?
The introduction of fixed-odds betting in New Jersey does not only aim at improving returns to players. They also aim at creating a safer and fair betting environment. Additionally, it is believed that this offer will allow young players to develop an interest in horse racing.
It is also notable that BetMakers, which is the company in charge of fixed-odds, will not be accepting any bets, and they rightfully share the revenue received. Instead, their primary duty will be taking feeds from tracks and distributing them worldwide to other sportsbooks to take bets.
The biggest gain here is that more than 86% will be paid to bettors. Horse riders will get their cut depending on their agreed terms, and everyone will benefit greatly.
Since BetMakers proved that it would offer more support to the whole horse racing industry, it went ahead to buy Sportech, an American-based company that processes bets. The company has for a long time offered its services to the majority of racetracks and betting companies.
How Will Horsemen Receive Their Cuts?
Individuals who support implementing fixed odds betting have claimed that it would offer more options and give players certainty of their income when they make their bets. They used the case of Australia, which was among the top countries, to implement fixed-odds racing. Currently, they make more than 60% of the actual income.
Compared to other sports where their stakeholders and sponsors pay players, horse riders solely depend on bets as their primary source of income. As a result, many stakeholders and horse riders have aired their grievances concerning the minimized takeout.
In line with the type of bet, the amount they take home can be somewhere around 18-19% or more than 205 for selected bets. But BetMakers has insisted that sportsbooks offering this service will have to pay the horsemen the appropriate amount of money.
Which Company Will Be In Charge of Fixed Odds Services
An Australian company known as BetMakers tech group has been mandated to handle the operation of fixed-odds betting in New Jersey. They both signed a 10-year deal that will give BetMakers a chance to create partnerships with certified sportsbooks within New Jersey to serve their customers.
The company has further added that they want to expand their reach to other companies in the United States and beyond. This move would allow gamblers from New Jersey to also bet on fixed-odds bets in the other tracks.
How Is The Fixed-Odds Wagering Being Implemented?
Bill Pascrell, who has been the frontrunner in advocating for fixed-odds betting to be implemented, has confirmed that the meetings he has held over time have proven fruitful. New Jersey’s horse racing industry representatives will continue to line out the commercial and language terms and all other issues raised.
The progress so far has seen the New Jersey racing commission issue licenses to racetracks. The commission will be assisted by the Department of Gaming Enforcement which will be responsible for reviewing licenses. Once the racetracks meet the credentials, the licenses will be handed to them.
Fixed odds racing is being rolled out in many states within the US, and it is already gaining some ground. For example, with the recent implementation in New Jersey, punters will improve the betting environment, promoting fairness and equality. Since the system worked in Australia, it is likely to do the same in the United States.