Exchange Wagering Leading the Way to
Mobile Pari-Mutuel
Special Committee Session on Pari-Mutuels
Summer Meeting 2016, Boston
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Intro to Exchange Wagering
• “Wall Street”-style wagering
– Locks in your odds
– Wagering one-on-one
– Place bets until the end of the race
• Available on mobile devices
• Launched at Monmouth Park in May 2016
– Can wager on 10 other tracks from WA, WV, PA, and Canada
• Betfair is the sportsbook behind it
– Began operating in Europe 15 years ago
© Ifrah PLLC. Proprietary and Confidential. / (202) 524-4140 / ifrahlaw.com
Legal History of Exchange Wagering
• NJ legalized exchange wagering in
2011
• Monmouth did not secure the first
license until 2015
• California legalized in 2010
• No licenses issued yet
© Ifrah PLLC. Proprietary and Confidential. / (202) 524-4140 / ifrahlaw.com
A Winning Bet?
• What does the racing industry have to gain – or lose?
– Potential Gain: Draw in a new and younger crowd
– Potential Loss: Commission rate
• Rate is currently lower than traditional pari-mutuel, so
concerns about cannibalization
© Ifrah PLLC. Proprietary and Confidential. / (202) 524-4140 / ifrahlaw.com
Mobile-Based Wagering
• Exchange wagering and
other mobile-based
wagering need to be
explored
– Online and mobile-based
wagering is more likely to
draw in coveted millennials
• Betfair has shown this
works
– Averaging 3 million wagers a
day across all sports
© Ifrah PLLC. Proprietary and Confidential. / (202) 912-4823 / ifrahlaw.com
Jessica Feil, Associate
Email: [email protected]
Twitter: @jessicaafeil
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