New Jersey Now Allows Fixed Odds Horse Race Betting

  • New Jersey has regulated fixed-odds horse racing betting despite normally being done via parimutuel pools.

TRENTON, N.J. - New Jersey has become the first state to regulate fixed-odds horse racing within its borders. Gov. Phil Murphy signed the Fixed Odds Wagering Act into law on Thursday after it was approved by the Senate and Assembly more than a month ago.

This bill should work to the benefit of those gambling in New Jersey, as fixed-odds markets are more familiar to them.

This could also help out the providers of horse race betting, as it could attract new customers and remove barriers to entry.

Dennis Drazin, CEO of New Jersey’s Monmouth Park Racetrack, was effusive in his praise for the bill, and its potential positive effects on the New Jersey horse racing industry.

"Just like sports betting, New Jersey will become the first state to legalize fixed odds betting on horse racing and we are very excited about what this can do for the industry,” said Drazin.

Why Fixed Odds Horse Racing Matters

Normally in the United States, horse racing is done via parimutuel markets, where odds shift as money comes in. In a parimutuel system, bettors run the risk of their wager becoming less profitable if more people wager on it.

As a contrast, a fixed-odds system is much more like what American bettors are used to - you get the bet at the odds it had when you placed the bet.

In turn, this could generate more profit for the horse betting companies themselves, who required government permission in order to offer this style of wagering.

This seems like a win-win for all parties involved, although it is worth noting that BetMakers, an Australian betting company, has exclusive rights to all fixed odds horse betting done in New Jersey until 2030.

This means that they have perfectly set themselves up to be the middlemen - any company that wants to offer fixed odds horse betting will have to go through them.

So, while this is a win for gamblers and for gambling companies, it is, most of all, a win for BetMakers.