New Jersey Legislators Pass Fixed Odds Horse Racing Wagering Bill

After several months of debate, legislators in New Jersey have finally entered the final lap of ushering fixed-odds betting for horse racing into the state. Referred to as the Fixed Odds Wagering Act, the bill authorizing fixed-odds betting on horse races in the state was unanimously okayed by legislators in both the Senate and the General Assembly, and the baton has now been handed over to Governor Phil Murphy.

New Jersey's Fixed Odds Wagering Act will now work alongside the already legal pari-mutuel wagering to offer bettors more flexibility. The governor, a Democrat, is expected to carry the bill across the finish line by signing it into law to officially introduce a thrilling advancement that could change the game for horse race betting countrywide.

The Culmination of a 9-Month Legislative Journey

The measure was introduced into the General Assembly in November 2020 as bill A4909 by two Republicans, Assemb. Ronald Dancer, a representative of the 12th Legislative District and Assemb. Ralph Caputo of the 28th District. It was later referred to the Assembly Tourism, Gaming, and the Arts Committee, where it was approved in May 2021 by all seven panel members and advanced to the Appropriations Committee. There, it was okayed in a 10-0 vote, with one member of the committee abstaining from the vote. After a reading on the General Assembly floor, bill A4909 received unanimous support 74-0-1 vote in May.

In the State Senate, the same bill dubbed S3090 was tabled in November 2020 as well. Here, it came under the sponsorship of a duo of Democratic Party politicians; Sen. Paul Sarlo of the 36th District and Sen. Vin Gopal of the 11th District. It passed the Senate State Government, Wagering, Tourism & Historic Preservation Committee by an 11-0-1 vote in the same month and progressed to the Senate floor.  Following amendments to accommodate stakeholders and horsemen groups, S3090 got the thumbs-up in a 40-0 Senate vote on the morning of June 21st.

Due to the amendments made in the Senate, the Fixed Odds Wagering Act was taken back to the General Assembly on June 21st. Later that day, it was once again endorsed by a unanimous 71-0 vote. After that, the bill was dispatched to the governor’s office, where it now awaits his signature.

How is Fixed Odds Betting Different From Pari-Mutuel Wagering?

Previously in The Garden State, fixed-odds were only available on three types of wagers – win, place and show. Any other forms of exotic wagers could be placed on pari-mutuel platforms alone. However, fixed-odds betting is completely different from the traditional pari-mutuel system.

Under pari-mutuel-rules, the odds keep fluctuating until the betting window is closed. Upon closure of the betting window, the wagers booked on each entry or horse are then computed by an AI program that accurately defines each horse’s final odds and the potential payouts for the bets. For fixed odds, on the other hand, bookmakers set the line on each entry or horse, and the price is locked in whenever a player buys a betting ticket. So, even if the bookmaker later adjusts the line, the ticket’s payout will still remain the same.

Some of the benefits of fixed-odds betting that players will soon be enjoying in New Jersey include:

• Players will be sure of what amount of money they’ll make should their predictions be correct.
• The fraction of wagers kept by racetracks hosting racing events to cater for expenses is set at 12.5%. For pari-mutuel wagering, this portion known as basic takeout is set at between 15 and 18%.
• Fixed-odds wagering eliminates last-second fluctuation of odds that often occurs when handicappers use automated bots to pump in large amounts of money into betting pools just before the betting window closes.
• There will be an expanded range of exotic wagers available for bettors.

BetMakers Technology to Win Big From Fixed Odds Betting

Back in February 2020, when the fixed-odds betting debate started taking root, Aussie-based BetMakers Technology Group positioned itself to seize the opportunity long before a working bill had been introduced in New Jersey’s legislature. BetMakers penned a 10-year agreement with Darby Development, LLC and the New Jersey Thoroughbred Horsemen’s Association, allowing it to partner with licensed sportsbooks to offer fixed-odds racing technology.

Darby Development is the operator of Monmouth Park in Oceanport, which is set to host the Haskell Invitational Stakes on July 17th. Backers of the change in law hope that the Fixed Odds Wagering Act will have been signed by Gov. Murphy by then. When the bill was approved by legislators last week, Dennis Drazin, the CEO and chairman of Darby Development, voiced his enthusiasm in a statement saying:

Quote

“This is an exciting new wagering opportunity for our fans, and we’re grateful for the support from our legislators and Governor Murphy, who continue to ensure the success of Thoroughbred racing in the state. Our hope is that we can be up and running with fixed-odds wagering in time for the TVG.com Haskell Stakes on July 17th—or sooner if possible.”