New Jersey moves closer to fixed-odds wagering

There are few things more frustrating to a horseplayer than watching your horse enter the starting gate at 6-1 and cross the finish line first at 4-1.

For years bettors have wished for a fixed-odds option in addition to the traditional pari-mutuel method and they are now closer to getting their wish - at least in the state of New Jersey.

In an unanimous 4-0 vote on Wednesday, New Jersey's racing commission greenlit a fixed-odds pilot program for 2021 that would be limited to bets on out-of-state Grade I races.

Legislation will continue concurrently throughout the pilot program as the state attempts to come to a permanent agreement. The legislators will eventually have to vote on the final bill and it would need the governor's signature to go into effect.

New Jersey, which was at the forefront of legalizing sports betting, has seen plenty of political support behind this proposal.

Currently a limited number of sports books offer fixed-odds in advance only for top races such as the Kentucky Derby or Breeders' Cup Classic, but this bill, which was proposed on Oct. 31, is not exclusive to sports books.

“We’ve been hung up for six months on whether or not a wager on a horse race is a sports bet or a horse racing bet, because they’re handled differently. The proposed legislation says it’s a horse racing bet,” Dennis Drazin, the chief executive of Darby Development, said on Wednesday's teleconference meeting according to T. D. Thornton of TDN.

Darby Development LLC. operates both Monmouth Park and its sports book and would put the proposed legislation into effect if approved.

Drazin highlighted the success that Australia has had with a similar program.

“The Australian [fixed odds] model has proven to grow their industry. And with a significantly less population in Australia than we have here, they out-handle us,” Drazin said according to Thornton. “I think it’s important that we look at this. Nobody knows what the future is going to be…In the early days, it will have a minimal impact [on pari-mutuels]. But five years down the road, a significant portion of the handle will be fixed odds.”  

A push was made to include all graded stakes races, plus stakes action within the state. Though that was denied the current G1 program, which will include about ninety races, is a good start to the future of fixed-odds wagering.