PointsBet To Launch Fixed Odds For New Jersey Horse Racing

PointsBet To Launch Fixed Odds For New Jersey Horse Racing
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PointsBet is taking a page from its Australia operations to offer a different way of betting on horse racing in the United States — or at least in New Jersey for starters.

The Australian-based company, which is expanding its presence in the U.S. sports betting market, announced that it has partnered with BetMakers Technology Group to offer fixed-odds horse racing betting for races at New Jersey’s Monmouth Park track, pending regulatory approvals from the state.

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PointsBet aims to expand fixed odds horse racing betting into other markets when those jurisdictions approve it, the company said in a release on Thursday. Monmouth Park is expected to take fixed-odds wagers on July 18 for The Haskell Invitational, PointsBet Director of Communications Patrick Eichner said in an email to Gambling.com on Thursday.

Difference Between Fixed Odds and Parimutuel

The product that the PointsBet sportsbook is set to offer is unusual for the American sports betting market for horse racing, but more widely in practice in Europe and Australia.

With parimutuel betting, which has long been the standard method of wagering in horse racing and dog racing in America, the bettors essentially compete against each other. The money wagered is gathered in a pool and distributed based on how many people bet on a particular horse or a combination of horses (daily doubles, trifectas and so on). The odds keep changing until just before a race’s post time based on the percentage of people making each possible bet.

After the facility takes its standard cut — and that is key because the track takes the same percentage all the time, instead of making profits or losses based on race results — the winning bettors get their payout. Your horse might have been 10-1 to win when you laid down the cash but if it went off at 7-1, that’s the payout you get.

Fixed odds means that lines are set up much like in other sports, whereby the bettor gets whatever odds were offered on a horse at the time the bet was placed. A win by a longshot might mean a big profit for the sportsbook if few people bet on it. Conversely, just like in other sports, the book might lose out if the bettors hammer a favorite.

For example, with Kentucky Derby betting, if a horse is 10-1 on the Friday before the race and you bet on it then, you get that horse at 10-1 whether the odds shift to 5-1 or 15-1 on the Saturday of the race.

“We see the fixed odds betting type as having great potential for horse racing to be a preferred wagering choice across the U.S., which can increase both the profile of Monmouth Park and horse racing in general,” Monmouth Park CEO Dennis Drazin said in a news release from BetMakers.

In February, BetMakers, also based in Australia, agreed to a 10-year deal with Monmouth Park operator Darby Development as well as the New Jersey Thoroughbred Horseman Association to offer fixed odds in New Jersey.

Busy Time for PointsBet

The New Jersey agreement further expands PointsBet’s dealings in the U.S. sports betting market. On July 2, the Detroit Tigers became the first Major League Baseball team to make a sports betting deal when it agreed to a partnership with PointsBet.

In addition to New Jersey, PointsBet is also available at Iowa and Indiana sportsbooks and has been approved for operations in Colorado at Double Eagle Casino in Cripple Creek. The company made Denver the headquarters for its operations in the Western states.

“As a company, we understand thoroughbred, harness and greyhound racing and we intend to capitalize on the expertise we have gained in Australia as we roll out racing products into the U.S. market where (it is) legal, starting in New Jersey,” PointsBet CEO and Managing Director Sam Swanell said in a company news release. “We see this as a significant opportunity.”