fixed-odds wagering | Horse Racing Free Tips

Fixed-Odds Era Begins at Monmouth

OCEANPORT, N.J.-With a steady stream of customers showing up at the fixed odds windows, Monmouth Park's bold experiment with a new form of wagering the track hopes will energize the sport began Sunday.

Fixed-odds betting was supposed to begin a day earlier, but the opening day of the 2022 meet was canceled due to bad weather.
Monmouth did not release figures regarding how much was wagered on the fixed-odds bets, which made it difficult to assess how successful it was on day one. Because the bets are only available at present to on-track customers and Monmouth is the only track, for now, that players can bet on, expectations are that the handle, at the outset, will be modest.

There were, however, some positive signs Sunday. Three windows on the first floor of the grandstand accepted only fixed-odds wagering and the lines to get bets in typically ran three or four deep.

“The holds have been building with every race,” said Dallas Baker, the head of international operations for BetMakers, the Australian firm coordinating the fixed odds bets for Monmouth. “It's an educating process for the customers and an educating process for us as well. We are learning a lot. We are up and writing bets, but there are still a couple of takeaways from today that we need to look at. Ths success for us this weekend was always going to be measured by whether we were up and running and writing bets. We're writing bets and everything is working.”

Some of the customers appeared to be confused by the prices posted by BetMakers, which used the same system in place with overseas bookmakers. The stake is not included in the price. Therefore, a $2 bet on a 4-1 show pays $8, the same as a 3-1 shot in the pari-mutuel pools.

Many of the players were shopping for bargains, hoping they could find a horse going off at 3-1 in the fixed odds that might be 8-5 with the tote.

“I think this will work,” said jockey agent Nick Fulco after betting on the first race. “It will work in big fields, 12-horse fields, the turf races. You'll get 20-1 on maybe an 8-1 or 9-1 shot. Another place it will work is with the first-time starters. In the fixed odds a first-time starter might open up at 10-1, 15-1 and then you'll see them getting bet down. You might get 15-1 on a horse that pays 3-1. I'm going to be shopping around today for the best odds.”

(Note: For the sake of simplicity we have converted the fixed-odds prices to include the stake so that they correspond with the pari-mutuel prices).

Bargains were to be had, starting with the first race. Race winner Rhumjar (Holy Boss) took a lot of late action with the tote and went off at 2-1, paying $6. He opened at 9-2 in the fixed odds and held steady at that price. In the same race, beaten favorite Mr. Extension (Malibu Moon) went off at odds of 9-10 on the tote but could be had 8-5 in the fixed-odds betting.

It happened again in the second race with winner Kingdom Queen (Exaggerator) opening at 20-1 in the fixed odds before drifting down to 15-1. The filly went off at 8-1 in the pari-mutuel pools, paying $18.20. In the fifth race, Hushion (The Lumber Guy) paid $17.20 in pari-mutuel wagering with a $2 fixed odds bet closing at $28.00.

“We've seen massive price differences on some of the winners already today,” Baker said midway through the card. “We've also had 20-1's that were 10-1 on tote. It will show what a great service this is for the customers. Hopefully, this is a nice and easy start to what's going to be a great thing here.”

Bob Filo was typical of the customers that gave the fixed odds a try. A small bettor, he was curious to see how the system worked and was willing to give it a chance.

“I think this is a good idea,” he said. “If you're betting on a horse that you know is going to be a hot favorite you can shop for the best odds. I just wanted to try it. I just bet $5. I'm not sure how much I'll be betting on the fixed odds. I have to get used to it, see if it is worth it. I have to get the feel of it. I'll probably bet some in both pools today. Paco [Lopez] is always on the hot favorite. Maybe his horses won't be so low in the fixed odds. Then again, you might get burned. You could take Paco at 4-5 in the fixed odds and then his horse drifts up and goes off at 8-5. You just don't know.”

Baker said that he had expected to see more big gamblers try to exploit differences in the odds in the two pools.

“I was a bit surprised that we haven't seen a lot of professional money come in,” he said. “I was ready to be here and taking on some more professional money. It's been more just the general patrons getting into it. When the holds get bigger the more professional money will start flowing in.”

Baker has said that fixed odds should be available with online bookmakers in the state within a month or two. Betting will also expand to other tracks shortly and Baker said that his company has signed up about 15 tracks. However, all of the major racetracks are still taking a wait-and-see attitude regarding fixed odds wagering.

The post Fixed-Odds Era Begins at Monmouth appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

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The Week in Review: Industry Needs to Embrace Fixed-Odds Wagering

Monmouth Park announced last week that it will begin to offer fixed odds wagering starting May 7, opening day of the meet. That was the good news. The bad news was that fixed odds betting will begin with a cautious rollout and without the major players in the sport on board.

Starting Saturday, bettors on-track at Monmouth will have the choice of making traditional pari-mutuel bets or placing fixed odds wagers. Two areas of the track will be designated for fixed odds and the bets can only be made through tellers. The minimum bet will be $1. Any wager calculated to return a profit of $5,000 or more on a win bet or $2,000 or more on a place or show bet will be subject to approval. At the start, the only track available to patrons will be Monmouth Park.

It's a bit disappointing that the bets will be limited to on-track patrons at first. Without having an on-line outlet, the handle will likely be very small at first. According to Dallas Baker, who is the head of international operations for BetMakers, the Australian firm that will deliver and manage fixed odds wagering at Monmouth Park, it won't be long until New Jersey residents can bet on-line. Some regulatory hurdles need to be cleared and when they are, the on-line bookmakers in the state licensed to accept sports bets will begin to take fixed odds racing bets. There are no current plans to have traditional ADWs like TVG, Twin Spires and Xpressbet accept fixed odds bets.

Saturday, will mark an exciting development. For years, the sport has been debating the importance of fixed odds bets and whether or not it should be part of racing's future. Now, finally, it will be offered by a U.S. track on U.S. wagers and we can start to see how it all plays out and whether or not players will gravitate to the new form of wagering. Fixed odds betting has been particularly successful in Australia, where it has led to a sizeable increase in total handle, which has boosted purses, and has been the most popular form of wagering in the U.K. for decades.

Should fixed-odds betting catch on, it will go a long way toward solving what is a huge and growing problem for the sport. With the computer-assisted players dominating the pari-mutuel pools, the everyday bettor has no idea what price his or her horse is going to go off at. You might bet a horse who is 4-1 going into the gate and it gets pounded down to 2-1 at the last second. Win or lose, that leaves a very bad taste in the bettors' mouths.

Recognizing that, Monmouth had adopted a marketing slogan for the fixed odds bets, “the odds that you bet are the odds that you get.”

While fixed odds can help with the massive problem of shifting odds, that's only one small part of the picture. Will it help to grow the sport? That's the great unknown.

To work, fixed odds wagering will have to lure some sports bettors over to racing. As things stand now, the pari-mutuel form of wagering doesn't fit into the model of on-line sports betting, but fixed odds do. If a sports bettor could place a fixed-odds wager on Mo Donegal (Uncle Mo) at +900 in the GI Kentucky Derby, that might be something they'd be inclined to do. The sports bettor is always looking for action and even obscure sports such as ping pong have attracted a surprisingly large amount of handle. Sports betting is a huge business and if racing could tap into just a sliver of the market that would mean significant gains.

“There are opportunities in front of us, specifically in sports betting, that offer us what I would term probably a once-in-a-generation opportunity,” NYRA CEO and President David O'Rourke said at last year's University of Arizona's Race Track Industry Program's Global Symposium on Racing. “Our content isn't on those platforms yet and we have the opportunity to actually do that. There's a lot of hurdles to get there. I know there's a panel on fixed odds and that's a debate, but in the end I believe, and I think our company believes, you have to give the customers what they want. We do have a great product–pari-mutuel is excellent, it's great specifically in the exotics, but there is room, I believe, for proposition bets and for this content to live side by side. And I think as these sportsbooks grow and acquire customers, that's just a huge distribution channel for us.”

O'Rourke isn't wrong, but this won't work if the product is not a good one. A different form of fixed odds betting was already tried in New Jersey, and it was a bust. Betfair, which offers exchange wagering and is wildly popular in the U.K., began in 2016. Four years later, the plug was pulled. Betfair was handling so little money that it no longer made economic sense to keep the platform operating. Betfair failed for a number of reasons, but the main problem may have been the content it offered. All of the top tracks, including the Stronach and Churchill tracks and NYRA, did not offer their signals to Betfair. What was left were tracks like Turf Paradise and Penn National. There just wasn't an appetite to bet on those smaller tracks.

So far, fixed-odds betting is saddled with the same issues. Baker said that about 15 tracks have signed up and that within a few weeks on-track players at Monmouth can also make fixed-odds bets on those signals. But BetMakers has not signed up any of the same premier tracks that Betfair never landed. That is a problem.

Baker is hoping that fixed odds will eventually prove to be so successful that tracks will come to the realization that it is something they need to be a part of.

“I'd like to think that once we start to show the model, we will prove that the sky isn't going to fall down because of fixed-odds wagering,” Baker said. “We're not expecting a miracle solution day one, to flip the switch and everything has changed. This is something that is going to take at least six to 12 months before it starts capturing the attention to the extent it needs to do before we see any great results. We hope this will speak for itself, that this is a really good solution for the racing industry. We hope the results speak for themselves and make it a no-brainer for other tracks to become involved once we can get rid of the fear factor. Once it starts speaking for itself, it will become an obvious decision for other tracks to be involved.”

Baker said that NYRA has expressed interest in selling its signal to BetMakers for fixed odds betting.

That would help, but it's going to take a lot more than that. It's understandable that tracks want to proceed slowly and let a place like Monmouth be the guinea pig. There is a possibility that fixed odds will do nothing more than siphon money out of the pari-mutuel pools and not grow the pie. That wouldn't do anyone any good.

A future sport without fixed odds and ties with on-line bookmakers is not a pretty picture, not with the way sports betting is dominating the landscape. This needs to be given a chance. And that means the top tier tracks coming on board. It means working behind the scenes to legalize fixed-odds bets throughout the country. It means looking at ways to involve the ADWs. It means taking these steps sooner rather than later.

Yes, it's still early in the game and, yes, having fixed odds betting at Monmouth is one small step in the right direction. But it's just one racetrack in one state taking bets on only one track and offering them only to those who are at the track. One would have hoped this could have hit the groung running. That hasn't happened. Hopefully, the best is yet to come.

The post The Week in Review: Industry Needs to Embrace Fixed-Odds Wagering appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

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Monmouth Targets March Launch For Fixed-Odds Wagering On Racing

Dennis Drazin, the CEO of Monmouth Park in Oceanport, N.J., issued the following open letter to industry stakeholders on Wednesday:

I am excited to update you about the introduction of fixed odds betting on thoroughbred racing in New Jersey, which we now plan to start rolling out in March.

Importantly, I also want to share insights into the commercial model and agreements we have in place with the purpose to maximize the intended success of this new venture.

It is under this model that I believe fixed odds betting can be transformative for the Thoroughbred industry by unlocking new revenue that can flow back to stakeholders and participants and grow the sport we all love.

The go-to-market roll-out of fixed odds betting on racing in New Jersey: Fixed odds bets on Thoroughbred racing meetings are scheduled to be offered on track at Monmouth Park from March 2022. Shortly thereafter, and prior to Monmouth's live racing start on May 7, 2022, fixed odds will be available online thru NJ licensed sportbooks.

Fixed Odds is available now to licensed Sportsbooks thru BetMakers. Thanks to our partners, BetMakers Technology Group, who have assisted us to officially open the door for major Sportsbooks across New Jersey to participate.

BetMakers, under a fixed odds management and distribution agreement with Monmouth and the New Jersey Thoroughbred Horsemen's Association, has a 15-year exclusivity on fixed odds in New Jersey.

In effect, this means that any Sportsbook wanting to offer their New Jersey customers fixed odds bets on win, place and show on approved Thoroughbred racing (in state or out of state) must have an approved agreement in place with BetMakers. This is still subject to Interstate
Horseracing Act (IHA) approvals regarding out of state signals. We have endeavored to ensure that horse racing participants are protected under the IHA through the Fixed Odds Wagering Act (FOWA) and regulations.

BetMakers has minimum guarantees with Monmouth and the NJ horsemen. These payments protect the current revenue streams of the racing industry currently generated by pari-mutuel wagering. This underscores the vital importance for Sportsbooks to have commercial agreements in place with BetMakers before they can offer fixed odds betting, which assists to cover these guarantees.

BetMakers has started the process of engaging with online sports and casino operators with the aim to onboard five Sportsbooks for fixed odds betting in the first half of this year. Once approved, Sportsbooks can bet fixed odds on all relevant racing through online sites and in addition to brick-and-mortar casinos, OTBs and at other track venues.

Our model for fixed odds racing is built on fairness and returns to the industry:

It's time for the Thoroughbred racing industry to share in the fixed odds betting boom that has seen more than $10 billion annually wagered on sports in New Jersey alone.
Up until now, Thoroughbred racing has not been able to offer those sports bettors a similar product in horse racing. Through the model we have developed, and under our agreement with BetMakers, this is set to change.
The model has been developed after much consultation with industry stakeholders and is established through the proper legislative and regulatory channels to ensure both integrity and sustainability and deliver the intended prosperity back to the Thoroughbred industry in New Jersey.

This approach has been taken to protect and reward our industry, and it has taken time to reach a point of rolling out fixed odds betting on racing because we needed to create a sustainable growth strategy benefitting the stakeholders of Thoroughbred racing.

This new incremental revenue I believe will flow from fixed odds betting on horse racing to:

the respective stakeholders who put on the show in a sustainable and equitable way;
offer a competitive betting product alongside other sports offerings, since racing can offer this product every day and night all year long;
bolster all aspects of human and equine welfare through better industry returns.

What does this mean?

A few years ago, after witnessing the incredible success that horse racing had experienced in Australia – and a wagering market in that country that doubled in size thanks to the introduction of fixed odds alongside a Pari-Mutuel tote operation – we sought innovation from a partnership with BetMakers that could attempt to replicate this success.

One of the major factors in pursuing fixed odds betting on Thoroughbred racing in New Jersey was the potential to grow the “eyeballs” on our existing racing product and extend the attraction of racing as a betting option alongside other sports events where fixed odds betting has been hugely popular.

Some of the leading questions that are being asked about this new fixed odds model are answered below.

What is the commercial model for the racing industry?

Sportsbook operators who sign and are approved through our exclusive partnership with BetMakers will pay a fee of 4% of turnover on any bets that are placed on thoroughbred racing within New Jersey .

This fee, collected by BetMakers, will then be distributed in majority to the following participants:

NJTHA – The horsemens group within New Jersey – which can distribute these funds back to participants through purses, which is also then shared with the breeding industry.
Monmouth Park – New Jersey's only Thoroughbred racetrack – which will assist in funding improved track facilities for trainers, jockeys, valets, grooms, hot walkers and improved on-course experiences for patrons and bettors.
Host Track – The track where the race is being conducted, which allows for the expansion into new audiences to drive returns for horsemens groups within other states and territories.

Can you guarantee this will benefit the Horsemens group in New Jersey?

Our deal with BetMakers has certain guarantees associated:

A hold harmless guarantee up to $1mil for any reduction in 'Purses' that are derived from Pari Mutuel betting for the Win, Place, Show markets
A minimum commitment to the 'Purses' of $1mil per year for the next 15 years from the introduction of Fixed Odds wagering

While we expect and are hopeful that Fixed Odds will deliver much higher returns and benefits within New Jersey, these minimum guarantees give us some certainty around the success of rolling out Fixed Odds on Thoroughbreds in the state.

As part of the original agreement and in addition to the above guarantees, BetMakers has also committed to Monmouth Park minimum revenues of $1mil which will allow us to commit to continue to improve facilities at the track for Horsemen and Patrons. We are excited to be unveiling our brand new 'Big Screen TV' in the infield for the first meet this year, that will be substantially bigger than the current display and we believe will bring the excitement of our racing to life.

Does this include In-state and out of state races?

Yes, all races that are bet through a licensed operator (Track, Casino, OTB, Sportsbook) in New Jersey on Thoroughbred races will pay the fee that is distributed to the participants. Out of state tracks will benefit through the 'Host Track fee.'

Are operators required to be licensed to bet fixed odds on racing in New Jersey?

Yes, Sportsbooks, Racetracks, online operators and casinos will need to be licensed and also have an agreement in place with NJTHA and BetMakers as their representative.

How will operators report on their betting handle?

All bets will be required to be recorded in the “betting and reporting engine” that has been developed for New Jersey Thoroughbred Horsemen Association.

Full transparency for regulators and rights holders will be available through the betting and reporting engine.

As a Thoroughbred Rights Holder for fixed odds, can I sell directly to an operator?

No, any rights holders and racetrack must deal directly with NJTHA through its representative BetMakers.

It is important under the model for horse racing in New Jersey that all operators betting on fixed odds within New Jersey are using the NJTHA model for reporting and integrity purposes. This model also assists to ensure the commercial benefits flow back to the industry participants in New Jersey.

Will licensed and approved operators be able to bet fixed odds on Standardbred racing?

No, the agreements are currently only in place under this model for Thoroughbred racing. I expect that standardbred racing executives will be closely monitoring the model.

What is the attraction for Sportsbooks, online operators and Casinos to sign up to fixed odds betting?

In the US, we have all witnessed the hugely successful introduction of fixed odds betting on sports in the United States. All indications are that there will be a similarly positive response from bettors/handicappers to fixed odds betting on horse racing.

The certainty of price setting for the person placing the bet has attracted a new audience of people betting on sport, and we expect this will be the case for horse racing. We believe we can reach a whole new audience – many times bigger than currently exists – through fixed odds.

With our strongly anticipated consumer-led willingness for the fixed odds product, the opportunity for Sportsbooks is to add horse racing alongside sports events to their fixed odds offerings to customers is obvious. Racing will be a new vertical of product for Sportsbook operators to offer their customers – and from a commercial point of view it is a high-frequency product that can deliver good margins.

The case study in Australia is compelling. Since the introduction of fixed odds betting alongside the Pari-Mutuel tote system, the overall racing wagering pie has grown – in fact more than doubled. We believe this can be the case in the US, too, and it will be in the interests of Sportsbooks to offer the racing product, especially if the margins generated by Australian wagering operators are seen in the US.

When will fixed odds betting be available in New Jersey?

Our expected launch date for fixed odds betting in New Jersey is March 2022, starting with on-track only, and then extended to online fixed odds betting ahead of Monmouth Park's new racing season in May 2022.

Does that mean only five licenses for fixed odds betting will be awarded by BetMakers?

No, it is only in the first phase of the online roll-out that licences will be restricted to the first 5 Sportsbooks signed up in New Jersey. After the first 5 have been announced, all other approved wagering operators that wish to offer this bet type to their customers will be able to offer fixed odds betting on Thoroughbred racing in New Jersey if they have agreements and approvals in place through BetMakers.

I suggest that any Sportsbooks interested in securing one of the first 5 licenses to offer fixed odds betting on thoroughbred racing in New Jersey to their customers don't hesitate to contact BetMakers' North American CEO Christian Stuart at christian.stuart@betmakers.com.

The post Monmouth Targets March Launch For Fixed-Odds Wagering On Racing appeared first on Horse Racing News | Paulick Report.

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New York Senator Introduces Bill To Allow Fixed-Odds Wagering On Racing

With the pending launch of mobile sports betting fast approaching in New York, Sen. Joseph Addabbo (D-Queens), chairman of the Senate Committee on Racing, Gaming, and Wagering, has filed a bill that would allow fixed-odds wagering on horse racing, according to casino.org.

In 2021, as part of the enacted budget, New York State authorized the Gaming Commission to license mobile sports wagering operators. Those
licenses have since been awarded to entities that are going to be tasked with offering gaming opportunities that will lead to the best financial opportunities for the state of New York. As the law is written, a wagerer would not be able to place a fixed odds bet through a mobile sports wagering operator on a horse race.

Senate Bill S7536 would enable mobile sports wagering providers to offer that opportunity, should they so choose, but only if they enter into an agreement with the horse racing content provider. Additionally, this legislation would create additional opportunities for affiliated organizations to offer opportunities to participate in this gaming activity

“It's ridiculous that our New Yorkers can't place a bet on mobile sports betting, and at the same time place a bet at the fifth race in Saratoga or what have you,” Addabbo told Casino.org. “It would be just a natural marriage. It would just be a rational thought, once again, to combine those two.”

The bill will not be considered until the legislative session resumes in January.

“The legislation [Sen. Addabbo] has introduced presents an enormous opportunity for horse racing to share in the benefits of mobile sports betting,” said Patrick McKenna, a spokesman for NYRA. “It would be a big win for New York and for the future of horse racing.”