Monmouth Park's record all-source handle of $20.5 million from the July 18 Haskell Stakes this year, in spite of the fact that only 3,500 fans were allowed to attend, represents a rising dynamic between the horse racing and sportsbooks. On one level, Internet-based gamblers have assisted with supporting the horse racing industry this year. They have done so all spring and summer by giving multi-million-dollar handles to tracks that prohibit fans due to the coronavirus pandemic. However, a subsequent level is going to dispatch in New Jersey, through a vehicle known as fixed odds wagering. Adam Bjorn, a gaming executive and horse racing expert, discusses why this is good news for the horse racing industry.
Sportsbooks, energized by examples of success in other countries, need to tap a lethargic income stream from the worthwhile US horse racing market and their first partner should be Monmouth Park, which is looking to extend its circle of business. The vital participants in this organization, at least in New Jersey, are Monmouth, Australian innovation goliath BetMakers, and sportsbook administrator PointsBet, which has a sportsbook application in the state. Independently, DraftKings plans to put a few horse racing options in the mix in the following couple of months.
The impetus for the inclusion of horse racing by sportsbooks is fixed odds wagering, the ability by players to secure their odds minutes, hours, or maybe a day prior to the race. Says Bjorn, “Horse racing now works with pari-mutuel pools, which change extended payouts until the last seconds and frustrate bettors who see the value they bet upon adjusted.” Small-ticket bettors won't notice the change; however, high-rollers can have big wins and even bigger losses dictated by it.
Fixed odds, placing win, place and show bets, falls in line with the acts of sportsbook betting, and odds on most games are secured at the time one wagers. The addition of fixed odds options would be a triumph for the horse racing industry, which has been declining in the midst of high takeout rates and a betting platforms that doesn't tempt sports bettors. In addition, when utilized by enough players, they could transform horse racing into a growth industry – any option added to the mainstream of sports gambling would be advantageous to races.
It would also be a success for sportsbooks. When endorsed by administrative channels, sportsbooks could offer a memorable game that runs practically all year long. It's a game that prospered with large fields and sizable payouts during the COVID-19 pandemic.
Adds Bjorn, “Fixed odds gambling was first presented in Australia in 2007, and, in that year, the Australian dashing business sector took around $15 billion in bets, a 30% expansion over the earlier year. Throughout the following ten years, the market spiked to $24 billion in bets in Australia, representing a 46% expansion. Over a similar period, the US gambling market, with no fixed odds options, declined to $11 billion from $15 billion, or a 30% abatement. Numbers are realities, not conclusions."
Envision finding a thing you like on Amazon for $5 and, after you put it in your cart, the cost of that thing some way or another increments to $20 in light of the fact that 100 others likewise need to get it at a similar value. That is similar to what pari-mutuel betting on horse racing is presently. Gamblers really have no clue about what value they may wind up with since the cost can change after they've made the bet, relying upon where the most interest is. This is poor customer experience, and fixed odds solves for that by giving some trust and straightforwardness around what the end-client ought to expect when they make a wager.
There's huge potential for horse racing in the US market. In Australia, with around 25 million individuals, $25 billion is put into horse race gambling; however, in the US, with 330 million individuals, the handle is only $11 billion. Bjorn adds, “As sports gambling continues to become a stronger part of the entertainment market, more states will realize the importance of fixed odds and write their legislation to ensure they're included in the rules. If not, they're only hurting themselves.”
About Adam Bjorn
Adam Bjorn has been involved in the gaming industry for the past two decades. Originally from Australia, he has led casino and gaming operations for a number of different companies and has advanced knowledge of risk management, compliance, customer service, security & fraud detection, operations and general overall casino management. In his spare time, he is an avid outdoorsman who is always looking for a new adventure.
— WebWireID264303 —