01/18/2013 3:48PM

California exchange wagering rules set for review


ARCADIA, Calif. – Rules allowing the implementation of exchange wagering in California will be sent to the state’s office of administrative law before the end of January, a California Horse Racing Board official said Thursday.

It remains unclear when exchange wagering could start for state residents.

There is the possibility of lawsuits that could challenge the legality of exchange wagering, which allows bettors to back or lay horses to win or lose.

The racing board approved exchange wagering rules at its November meeting, but a legal review at the state level is required. The racing board was told in November that the rules would be submitted to the office of administrative law in December, but that process has been delayed.

Once the documents are submitted, the state’s office of administrative law will have 30 working days to review materials. If approved, the racing industry can move forward later this year with the implementation of the oversight technology and training to administer exchange wagering in the state.

Later in the process, a racetrack and horsemen’s group would need to reach a financial agreement with an account-wagering provider and receive approval from the board before exchange wagering could start.

If the state’s office of administrative law expresses concern about the rules, through a disapproval opinion, the implementation could be delayed extensively.

Exchange wagering was approved by the state legislature in 2010, pending the developments of rules by the racing board.