California to approve exchange wagering rules

The California Horse Racing Board regulates horseracing and licensed parimutuel betting in the western state and revealed that its rules on exchange wagering will now be reviewed by California’s Office of Administrative Law, which is a process that could take up to 60 days. If subsequently approved, the regulations covering license applications, operating plans, monitoring systems and financial and security integrity audits will go into effect immediately after being signed by Debra Bowen, California Secretary of State.

“Once the rules go into effect, exchange wagering can only begin after a California racetrack and the horsemen’s organisation at that racetrack reach an agreement with one or more exchange wagering companies and they bring that agreement/operating plan to the California Horse Racing Board for final approval,” read a statement from the California Horse Racing Board.

The agency stated that it also unanimously granted provisional licences for the operation of exchange wagering to Betfair and Churchill Downs ‘subject to the agreement with racetracks and horsemen and final [California Horse Racing] Board approval’.

“Both provisional licenses are conditioned upon the Office of Administrative Law approving the rules and the Churchill Downs provisional licence also requires it to agree to certain license fee requirements as Betfair representatives agreed to at the meeting,” read the statement from the California Horse Racing Board.
“These two and any other applicants are being required to provide hardware, software and training for California Horse Racing Board staff for the monitoring and regulation of exchange wagering.”