New Jersey has issued a license to Betfair that will allow the company to operate the first regulated online betting exchange in the United States.
The licensing process took four years before the New Jersey Racing Commission approved a partnership between Betfair and Monmouth Park Racetrack in Oceanport NJ.
Though Betfair’s exchange covers sports betting and other wagers internationally, the New Jersey license only covers horseracing. Betfair is also licensed to offer nonlife gambling in New Jersey, but not sports betting.
New Jersey is still fighting a protracted court battle to allow sports betting in the state despite a federal ban. Its latest appeal before a full appellate court could be heard as early as February.
If successful, Monmouth Park has planned to immediately start offering sports betting, but through a partnership with bookmaker William Hill.
A betting exchange is essentially an online network that offers peer-to-peer wagering, allowing bettors to set their own odds, unrestricted by a bookmaker, as long as a peer is willing to match that bet according to a report on Casino.org. Exchange betting is also notable for allowing bets to be made during the race.
Track officials said exchange betting should appeal to new, younger players.
The operator acts as an arbiter—usually taking a small commission. Odds available on a betting exchange are usually better than those offered by conventional bookmakers.
Monmouth Park could launch the Betfair exchange by March, officials said.
