FIXED ODDS BETTING
Monmouth Park eyes “ fixed odds ” betting
By Diane C . Walsh Editor
” F IXED ODDS ” BETTING WILL revolutionize the U . S . horse racing industry , according to BetMakers , an Australian sports betting data and services provider that wants New Jersey to lead the nation by bringing the new method to Monmouth Park Racetrack .
Photo : Getty Images / iStockphoto
“ We ’ re passionate about it because we know how good it ’ s going to be for racing ,” said Dallas Baker , head of international operations at BetMakers . He relocated to the Garden State last year so he could champion the efforts on the ground .
Fixed odds betting differs from pari-mutuel wagering because it allows customers to lock in prices prior to the start of the race . In this way it ’ s comparable to sports betting , where the bookmaker posts a line and the customer decides whether to take the bet . At a pari-mutuel window , all wagers are pooled and the odds are determined by the action taken on each horse . The pari-mutuel odds are in flux until the race starts .
Baker acknowledges N . J . bettors will have to be educated on the new system . But he contends there is enormous untapped potential and his firm has the experience and technology to facilitate a conversion to fixed odds .
In his native Australia , Baker grew up in the racing industry , even hosting a popular radio talk show . One of his earliest memories is hoisting around the Golden Slipper Stakes trophy in Sydney when his godfather was a leading trainer .
“ Racing is ingrained in our culture . But it needs to be re-ignited ,” he said .
Australia enjoys a robust racing market and Baker believes he can import the enthusiasm to the United States with fixed odds betting . According to his calculations , the current annual handle in Australia with pari-mutuel and fixed odds betting is around $ 25 billion in all three racing categories of thoroughbred , harness and greyhound . It ’ s generated from 20,000 races , where the average handle is $ 950,000 a race . For a county with a population of 25 million , that could mean every person bet $ 1,000 year .
The United States does not approach those figures . The annual handle with strictly pari-mutuel betting is $ 12 billion , even though there are 40,000 races each year in America . But the average handle for each race is only $ 300,000 . That means the per capita betting calculation for a county with 331 million is a mere $ 30 .
Baker drilled down into New Jersey ’ s statistics for an even more eye-opening glimpse of untapped potential . He said if only 10 percent of the Garden State ’ s tremendous sports betting handle was converted to horse racing it would create $ 100 million in betting handle on racing . “ We believe it ’ s out there and ready to be grabbed ,” Baker said .
BetMakers is working with Bill Pascrell III , a lobbyist with the Princeton Public Affairs Group , to convince lawmakers of the benefits of fixed odds wagering . Pascrell is considered a national expert and he was influential in bringing sports betting and on-line gaming to the Garden State .
He is eager to add fixed odds betting to his accomplishments . “ I believe in the power of fixed odds to save American horse racing ,” he said .
Two bills that would allow fixed odds betting at New Jersey ’ s tracks were introduced late last year and are winding their way through the state legislature . The Senate Budget and Appropriations Committee has already given the thumbs up . Now the version in the upper house must await action by the full Senate ,
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