Exchange wagering, a fixed-odds, peer-to-peer form of parimutuel betting popular in other parts of the world, will be offered to residents of New Jersey on horse racing beginning May 10th, Betfair US, the operator of the world’s most popular platform, and Darby Development, the operator of Monmouth Park, announced today. Unlike traditional “tote” wagering, where the odds fluctuate, are not determined until the start of each race and are the same for each customer, exchange wagering utilizes cutting-edge technology to allow players to take fixed odds by proposing or matching anonymous trades with each other via the exchange platform.
Exchange wagering is very popular in other countries, including in the UK, where Betfair pioneered the exchange 15 years ago. Betfair now processes on average more than three million transactions each day. It also allows bettors to ask for better odds than those available in the market at that time, to continue to wager during the running of a race and to “Cash Out” before a race is complete to ensure a profit or mitigate a potential loss.
“We are excited to be launching exchange wagering in New Jersey with our local horse racing stakeholders,” said Kip Levin, CEO of Betfair US. “Our experience in the UK and other markets has proven that the activity is an attractive prospect for consumers and that it can bring new customers, increased engagement and new revenue to horse racing.” According to the Betfair consumer research department, exchange customers are generally much younger and more tech-savvy than the demographic profile of horse racing fans in the US.
Exchange wagering was first authorized for the state’s residents by the New Jersey Legislature in 2011. Betfair was licensed by the state to conduct this sort of wagering in November of 2015 as a service provider to the NJSEA (New Jersey Sports and Exposition Authority) and Darby Development, the manager. Betfair, which owns the Los Angeles-based horse racing television network and advance deposit wagering platform TVG, also operates 4NJ-BETS and Betfair Casino in New Jersey.
Monmouth Park, which begins its popular summer racing season on May 14, will highlight the tracks offered to players on the exchange. Betfair launched a closed beta version of its platform available to its 4NJ-BETS customers on April 18 2016.
