Exchange wagering rules approved

The California Office of Administrative law has approved rules allowing exchange wagering, but it could be months before the controversial form of betting is implemented, if at all.

Earlier this year, the Office of Administrative Law rejected a proposed set of rules governing exchange wagering, forcing the California Horse Racing Board to rewrite 25 rules. At the time, the Office of Administrative Law faulted the proposed rules for “failure to comply with the specified standards of necessity, consistency and clarify.”

Even with the approval, a racetrack and horsemen’s group need to reach a financial agreement with an exchange-wagering provider and receive approval from the board before exchange wagering can start.

In a statement released on Tuesday, the racing board said any agreement between an exchange-wagering firm and a racetrack and horsemen’s group must be submitted to the board 90 days before the start of a race meeting and be approved at a public meeting.

Exchange wagering, popular in Great Britain, allows bettors to back or lay horses to win or lose. Legislation allowing exchange wagering was approved by the state legislature in 2010, pending the development of rules by the racing board.