ypically, the betting form relies on Internet technology. Betfair Group, which purchased racing channel and advance-deposit wagering company TVG last year for us$ 50-million, pioneered exchange wagering.
The bill would require the betting exchange to be licensed by the California Horse Racing Board, the racing association or fair conducting the meet, and the horsemen’s organization responsible for negotiated purse agreements. These provisions appear to assure the involved parties the opportunity to negotiate a percentage of money from the exchange provider’s fee be committed to the tracks and horsemen.
The CHRB would have the ability to prescribe rules, regulations and conditions for exchange wagering in the state. New Jersey lawmakers also are considering allowing exchange wagering on horse racing. The California bill was amended on Friday to include language that would allow betting exchanges in the state.
The bill also calls for a 2% takeout increase to 22.68% on exotic wagers requiring two wagering interests, like exactas and daily doubles; and a 3% increase to 23.68% on wagers requiring three or more wagering interests, such as trifectas, pick threes, superfectas, and pick fours. The additional takeout money would be committed to overnight purses.
The bill, which requires two-thirds approval, has received a third reading on the Senate floor, and has been referred to the Committee on Rules. The bill says changes are needed because Thoroughbred owners are not supporting California racing, instead opting for higher purses in other states. Unlike many of the states it is competing with, California does not use revenues from added gambling to supplement purses.
The project also includes provisions that would require a host of the Breeders’ Cup World Championships to set aside money from the increased takeout to promote the event. The bill notes the Los Angeles Economic Development Commission estimates the Breeders’ Cup, which was hosted by the Oak Tree Racing Association at Santa Anita Park in 2008 and ’09, pumps us$ 60-million into the state and Los Angeles region.