Fixed Odds Wagering To Drive NJ Betting Revenue Boom?

Fixed Odds Wagering To Drive NJ Betting Revenue Boom

New Jersey now has fixed odds horse racing betting. It’s now available at the Garden State’s Monmouth Park racetrack thanks to a partnership between Australian Horse Racing gaming technology company, BetMakers, and the iconic Oceanport NJ racetrack. It has already proven to be a hit with betting fans since Monmouth Park reopened for business in early July.

Could New Jersey be set to mimic the successes of the Australian horse racing industry and the fixed odds driven bump to gaming revenues Down Under? With slumping revenues, it could be precisely what the New Jersey State Government needs to boost its income from horse racing.

Before answering that question, let’s take a closer look at what fixed odds betting is and how it works.

Fixed Odds Betting explained

Fixed-odds racing is quite different to the traditional pari-mutuel figures that horse racing bettors in the U.S. are generally accustomed to. Unlike pari-mutuel wagering, where the odds continually change based on the bets that are made, fixed-odds betting allows for bettors to know the exact payout they will receive if the bet is a winner. Odds are still continually adjusted, however, with fixed odds betting, the current price is locked in when the wager is placed – just as they are in sports betting.

In other words, if you find a horse that you like at 10 to 1, you place a wager at those odds and if your bet proves to be successful that is the betting odds you will be paid out.

The advantage for horse racing bettors in particular, if you really know the field, you can place your bet way in advance and get incredible odds that just simply aren’t possible on race days.

The huge benefit of fixed odds betting is that it ‘democritizes’ betting for all. Fixed Odds Betting eliminates the benefit of the big “whale” bettors with huge bankrolls and computerized algorithms at their disposal who wait until the last possible minute to bet, which can drastically swing pari-mutuel odds, and affect the payouts of small-time bettors like you and me.

Noted industry expert, William Pascrell III, spoke at a function recently of a recent visit to Monmouth Park when he spotted four 20-something bettors walking away from the ticket window after collecting their winnings:

I heard them say that they couldn’t understand why they didn’t win on the 7-to-1 odds they bet the horse on, and only got 3-to-2 to win,”

What Fixed Odds Betting ensures that if you can find a wager offered at, for example, those 7-to-1 odds initially offered to the 20-somethings, you can lock it in immediately regardless of whether the price changes later – you get 7 to 1 paid out regardless of when you place your wager.

Why Fixed Odds will bring more revenue

The lessons learnt from the home of Fixed Odds Betting, Australia, (Remember – the technology involved hails from Down Under) should not be lost on the New Jersey industry.

Fixed-odds betting has been offered for 10 years in Australia now — a country of 25 million people wagering $25 billion on horse racing annually, 84% of which comes from fixed-odds betting. Before fixed odds wagering, that figure was only $10 billion in annual betting handle.

By comparison, the U.S. has had no fixed odds betting until recently, 330 million in population and only $11 billion horse racing betting handle.

Clearly, the potential growth is huge. What’s more, betting online on big international races like those at England’s Royal Ascot, Hong Kong’s Sha-Tin and Australia’s Flemington will become common place.

The New Jersey State Budget can’t wait to fill its coffers and bettors to count their winnings.

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