Wagering tech company BetMakers Technology (ASX: BET) is in the midst of sparking a fixed odds revolution in the US with licenses and partners now in place to introduce fixed odds betting in the State of New Jersey for horse racing.
The exclusive rights to offer fixed odds betting in the State was granted by the New Jersey Thoroughbred Horseman Association (NJTHA) to wholly-owned Betmakers subsidiary Global Racing Network. Originally, GSN has been granted the licence for a term of 10 years but those exclusive terms have now been extended to 15 years, making GSN the only supplier of fixed odds for horse racing in New Jersey, but able to sub-contract the data to third parties including bookmakers, online betting websites, and casinos.
BetMakers North American CEO Christian Stuart said, “There has been an overwhelmingly positive response to the introduction of fixed odds betting on sports in the US, and I believe there will be a similar response to fixed odds betting on horse racing.”
“I believe it presents a good opportunity for Sportsbooks to add racing to their fixed odds offerings to customers.
“Racing as a product for Sportsbook operators to offer their customers is placed to be a very important wagering vertical because of the frequency of events and the margins that can be delivered. I have seen the fixed odds betting boom on sports events in New Jersey, and the size of the fixed odds market is significant, and growing.”
Prior to 2018 there had been a ban on sports betting which was intended to prevent corruption amongst some of America’s biggest sports, the Supreme Court overturned the decision and sparked a gold rush to allow punters to bet on their favourite sporting games. BetMakers took this opportunity and struck a deal with the administrator of Thoroughbred racing in New Jersey so they could be the exclusive supplier of fixed odds on horse racing in the State.
While fixed odds betting is common across other racing jurisdictions, regulatory limitations in the United States have meant that pari-mutual betting (aka tote pools) was previously the only means for punters to bet on Thoroughbreds. With the proliferation of professional sports however, fixed odds betting has become the preferred betting product amongst punters.
In the last 18 months, BetMakers saw 1000% growth on their share price of $0.15 to a high of $1.65 in May 2021. Since then however, BET shares have reverted back to be trading around $0.63. These fluctuations come after BetMakers reported reported revenue of $19.46 million in FY21 when it was trading with a market cap over $1 billion but with its share price retrenchment, the Company’s value has come back to $561m.
BetMakers plans to launch fixed odds betting on Thoroughbred racing in New Jersey by March this year, while offering a whitelabel product to bookmakers and casinos looking to digitise their operations.
Trading Desk Assistant at Emerald Financial
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