Now it gets interesting.
California regulators gave final approval to the California Horse Racing Board’s revised rules for exchange wagering, the CHRB announced this week, setting up what could be fascinating theater for those of us who listen to audiocasts of the meetings.
Exchange wagering is fixed-odds betting between players.
In Europe, it allows bets during a race. Proponents say it’s crucial to bringing new fans to racing and will produce higher volume to offset lower takeouts and help the bottom line. Opponents say it doesn’t provide enough revenue for purses and will siphon money away from traditional pari-mutuel gambling that has higher takeouts and puts more money into purses.
Clearly, TVG Betfair will be interested in a license. Betfair bought TVG hoping to bring exchange wagering to the colonies. New Jersey has legalized exchange betting, but it still isn’t in use there.
The last go-round in California also saw Churchill Downs Inc. seek a license, although the Louisville-based company is decidedly leery of exchange wagering and how it might impact Churchill’s advance deposit wagering (ADW) service TwinSpires.com.
In its latest quarterly report, the company said, “exchange wagering … may have a negative impact on our current pari-mutuel operations, including our ADW business. Furthermore, California’s approval of exchange wagering may set a precedent for other states to approve exchange wagering, creating additional risk of a negative impact on our pari-mutuel wagering business.”
A Churchill spokeswoman declined to comment Wednesday whether the company will pursue a license again. The last time, when they did, CHRB officials were suspect as to whether Churchill would do anything with the license.
The other actor in the pending drama will be horsemen’s groups, which have to agree to have exchange wagering.
In part because of those agreements, the actual start of exchange wagering is still months away.
The CHRB release said: “The provider must submit the agreement along with an application to the CHRB at least 90 days before the expected start of exchange wagering. Exchange wagering can only begin if the Board approves the application at a public meeting.”
But the most recent approval means the start may just be months away as opposed to being in a timeless regulatory abyss.
