03/22/2012 3:52PM

California Horse Racing Board begins process of determining exchange betting rules


ARCADIA, Calif. – The California Horse Racing Board has launched the lengthy procedure to approve rules for exchange betting, a process that may not be completed by July when supporters want to implement the bet at the Del Mar meeting.

At its monthly meeting on Thursday at Santa Anita, the board voted to submit exchange betting rules for a 45-day comment period, during which public and industry participants can submit opinions. The comment period is the first stage of a process that will eventually involve a second review by the racing board, the possibility of further comment periods, and eventually a legal review by the state’s office of administrative law before exchange betting can commence.

Betfair, which owns TVG and operates the world’s leading exchange betting system, and Del Mar, are hoping to have the rules implemented by the start of that track’s meeting on July 18. It is questionable whether the rules will be finalized by then. Several organizations in the sport have expressed opposition to various aspects to exchange betting, which allows customers to post odds and accept wagers on whether a horse will win or lose a race.

After the upcoming 45-day comment period, the racing board will consider the feedback from the public. At a later meeting, possibly in June, the racing board will review potential changes to the rules. The board could approve the rules at that time, or if widespread changes are considered vital, send the rules back out for another 45-day comment period, essentially restarting the process.

If the board does approve rules, the secretary of state’s office must review legal terms before exchange betting will be allowed. Exchange betting is also subject to agreements between horsemen, tracks and exchange betting systems.

Betfair An Edge More than 1 year ago
Those college football games will be a thing of the past when this kicks off. http://www.youtube.com/watch?v=FWgV86oMQi0
Betfair An Edge More than 1 year ago
Will Betfair be offering a Sports Book as well as The Betting Exchange and will UK Bookmakers be allowed to operate in California?
Thegta Headmaster More than 1 year ago
Betfair will take a portion of what little money the tracks now get. I can't imagine why any track would want them in the game. And for those in the industry my question would be, is it easier to have your horse win or lose? This is just another disaster waiting to hit the industry.
Appolos Coleman More than 1 year ago
You comment is very reactionary, short sided and without any real long term thought. Our industry in it's present form is dying without an infusion of new bettors. Exchange wagering potentially opens our tracks to the world. This of course would mean a substaintial increase in our betting pools and the tracks as well as horsemen would benefit. Betfair is offering a solution. The world has become a global market place and horse racing must follow to survive. As far as betting on a horse to lose is concerned, if you think about it bettors do it everyday in every race only in the inverse. The carrot is still winning the purse and we have stewards that protect the integrity of the game. It has worked sucessfully in Europe for a few years now. Are you saying that Americans are less ethical?