New Jersey has made waves again as it prepares itself to become the first state to try to put a fixed-odds betting program next year. Legal, fixed odds betting in the country, has technically been limited to big races in Nevada. But thanks to Monmouth Park’s partnership with the BetMakers as we’ve discussed here, punters in the garden state will soon be able to take part in fixed odds betting in the state.
New Jersey’s move to include fixed-odds wagering in the state couldn’t have come at a better time. The only routine source of fixed-odds betting for punters in the state on American races has primarily been through off-shore betting options, which generally do not contribute anything to the tracks or horsemen.
Sportsbooks for the most part have always featured fixed-odds betting. However, horse racing has always relied on the pari-mutuel system of betting where odds change based on the amount of money that has been placed on a race. The addition of fixed-odds wagering to horse races will shake things up, hopefully making horse racing more enticing especially to younger punters.
The horse racing industry in the country is in dire need of new developments such as fixed odds betting especially if it intends to grow. Currently, horse racing is faced with various limitations that are preventing the market from attaining maximum growth. For example, horse wagering remains illegal in the country’s eight most populous state, Georgia, as well as another heavily populated state, South Carolina.
Additionally, betting in horse races in Texas is limited to racetracks, which essentially prevents punters in the country’s 2nd most populous state from opening advanced deposit betting accounts. One positive development this past month was North Carolina’s vote to legalize expanding gambling, which also included fixed odds and pari-mutuel wagering in the state.
Sportsbooks, horse racing, and fixed offs will have a symbiotic relationship
Monmouth Park recently recorded an all-source handle that amounted to an impressive $20.5 million from the Haskell Stake held in July this year. This impressive number was generated even though capacity at the Park was limited to only 3,500 attendees, which goes even further to prove the growing dynamic relationship between horse racing and sports wagering in the state of New Jersey.
In particular, online punters have been single handedly responsible for assisting the horse racing industry stay afloat amidst the challenges brought about by the pandemic. These punters have allowed the horseracing market to survive by giving millions worth of handles to tracks that prevent fans from attending in person as a result of the outbreak.
And once fixed-odds wagering, which is a common phenomenon in sports betting, is introduced to NJ as discussed here, horse tracks in the state can expect an even higher number of punters to show interest and take part.
Sportsbooks have been looking to tap a lackluster revenue stream from the fast-growing horse racing market in the country. As such, partnerships with the various sportsbooks in the state such as Monmouth Park should come naturally.
Once the fixed odds wagering program is implemented come next year, there should already be several participants waiting to take advantage including Monmouth Park, Australian-based BetMakers, and PointsBet, which recently received approval to operate in the state. Reports are rife that DraftKings also has plans in the works to offer fixed odds wagering in the future,
The driving force for the addition of horse racing by various sportsbooks in the state has been fixed odds betting which allows punters to secure their odds minutes, hours, or even days before the race is held, thus giving bettors more flexibility. The Pari-mutuel system, on the other hand, offers a poor customer experience which fixed-odds solves by adding a level of trust and transparency that enhances the entire betting process.
Currently, horse racing in the country is primarily based on pari-mutuel pools, which alter extended payouts until the final seconds; a concept that has been known to frustrate punters. Small ticket punters hardly ever notice the change when the value they wagered on is adjusted. However, high rollers can experience big wins and even bigger losses all because of the pari-mutuel adjustments.
Fixed-odds betting is already a common concept for individuals wagering on sportsbooks. As such, the addition of fixed-odds would be a win for the horse racing industry, which has been deteriorating due to high takeout rates and betting platforms that are not designed to allow sports betting. The addition of fixed-odds betting would be a win-win for both fraught horse tracks and sportsbooks.
Fixed-odds betting was first explored in 2007 in Australia and it has since grown to become a multi-billion-dollar industry. In the country, fixed odds wagering accounts for over 50% of bets placed. As such, sportsbooks in NJ can see the effect that fixed-odds wagering can and will have come 2021.
There is a huge potential for growth in the U.S. betting market. And with fixed odds now being added to the mix, the market is about to become more vibrant and stronger than ever. Case in point, in Australia where fixed odds wagering is already popular, an estimated $25 billion horse race bets are held.
In the US, alternatively, the handle recorded is only a measly $11 billion. As more and more states embrace legal sports betting, fixed odds wagering will become commonplace all over the country not just in New Jersey. Adding fixed odds betting to the NJ gaming industry is a great way to ensure that there is sufficient room for future growth.
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