Fixed-odds horserace betting is coming to New Jersey courtesy of Australia’s BetMakers and the Monmouth Park racetrack.
On Wednesday, the Australian-listed Betmakers Technology Group’s subsidiary BetMakers DNA Pty LTd (BDNA) inked an exclusive deal with the New Jersey Thoroughbred Horsemen’s Association and Darby Development LLC, which operates the Monmouth Park track, to distribute and manage fixed-odds race wagering in the state.
Fixed-odds wagering in New Jersey got the green light when the state approved its single-game sports betting legislation in 2018. But the state’s racetracks had yet to make this option available alongside its traditional pari-mutuel wagering operations.
In BDNA’s home market, fixed-odds wagering has proven increasingly popular with racing bettors, who don’t always appreciate the uncertainty that comes with betting on a horse at one price, only to see that price swing wildly up or down on bets made by other punters.
Daily Racing Form quoted Darby CEO Dennis Drazin saying fixed-odds wagering would likely be available when Monmouth opens its 2020 meet in May. The plan is to start with fixed-odds markets for win, place and show betting, with more exotic options such as parlays – including with non-racing sports bets – becoming available at a future date, pending regulatory approval.
Drazin said he began pursuing a deal with BDNA last year after some locally licensed sportsbooks began offering fixed-odds bets on New Jersey races without securing the tracks’ approval.
BDNA will now have the authority to offer the use of its betting platform to New Jersey sportsbooks – provided they’re willing to pay a portion of betting handle back to the track – but BDNA will remain the only market-maker for Monmouth’s product.
The deal, which is for a five-year initial term with a possible five-year extension, also makes BDNA the exclusive distributor of Monmouth Park racing content throughout the United States and internationally.
Tracks based in other US states and abroad will be able to strike deals with BDNA to offer their content to New Jersey bookmakers. Monmouth will also make its tote pools available to international bookmakers.
BDNA will pay Monmouth an unspecified percentage of turnover gained by providing racing data to US bookmakers, with a guarantee that these fees will total at least $5m over the initial five-year term. BDNA will also pay Monmouth a daily fixed fee per meeting for the international data rights, plus either (a) a cut of net revenue generated in New Jersey on other US or international racing events, or (b) an “increased turnover fee.”
TOM WATERHOUSE BETS ON BETMAKERS
Last month, BetMakers signed a technology deal with the Waterhouse Group, led by Australian racing scion and former William Hill Australia CEO Tom Waterhouse, who’s seeking to transform his Tomwaterhouse.com tip site into a new app that steers punters to Australian bookmakers.
The deal calls for BetMakers to build Waterhouse’s app, as well as provide technology, data and services for the Waterhouse global pricing and trading desk, which offers bookmakers a managed trading services solution. BetMakers will receive a cut of revenue generated by both Waterhouse products.