The longer it takes to get a new online racebook up and running in New Jersey, the greater the risk of the Garden State losing the only legal way to make pari-mutuel bets on horse racing over the internet.
- New Jersey is trying to transition to a competitive market for mobile pari-mutuel wagering on horse racing via NYRA Bets.
- Further delays in launching the new vendor could risk leaving the state without a legal pari-mutuel wagering option after TVG’s contract expires next year.
- Regulators are working with NYRA Bets and United Tote to complete the required infrastructure and testing ahead of key racing dates and the looming deadline.
While the odds of that actually happening are long, it’s a possibility. And it’s one that state regulators and industry officials are working to ensure does not come to pass.
Nevertheless, the risk was raised during last week’s meeting of the New Jersey Racing Commission, which regulates horse racing and pari-mutuel wagering on the sport. Furthermore, even if it’s a remote risk, New Jersey horseplayers may still be wondering when the promises made last year of additional betting options will be fulfilled.
A one-horse field (for now)
The issue is a bit complicated. The gist is that there is currently one authorized platform for "account wagering" in New Jersey, but there is an ongoing effort to transition to a competitive market for online betting on horse racing in the state. The longer that effort takes, the more risk there could be for horseplayers.
New Jersey-based horseplayers can legally bet at tracks, OTBs, and even using fixed odds with the BetMakers-powered MonmouthBets platform. Yet for mobile pari-mutuel wagering (the most widely used form of betting horses in the U.S.), there is only 4NJBets, an advance deposit wagering (ADW) platform run by the TVG arm of FanDuel Group.
TVG has been in sole control in New Jersey for more than a decade. However, a decision was made last year to make the New York Racing Association’s NYRA Bets the “managing vendor” for online and mobile pari-mutuel wagering in New Jersey.
The decision was expected to lead to more choice for horseplayers, with a press release trumpeting that “all account wagering platforms will have the opportunity to enter the New Jersey market,” albeit subject to certain approvals.
Soon! Just pending the approval of the New Jersey Racing Commission.
— NYRA Bets (@NYRABets) July 24, 2024
The press release added that, pending racing commission approval, "NYRA Bets will coordinate with online/mobile/sportsbook operators to establish a launch date later this year."
4NJBets, the release said, would "continue as an online and mobile wagering site in New Jersey as usual without disruption of service."
“We are pleased to usher in a new era for horseplayers in New Jersey,” said Tony Allevato, president of NYRA Bets, in the release. “As the sports betting market continues its rapid evolution, the expansion of NYRA Bets into New Jersey will benefit consumers by increasing competition.”
But New Jersey’s handover to NYRA Bets hasn’t technically happened yet. Meanwhile, an existing contract with TVG only extends until March 1, 2026. At that point, if NYRA Bets is not up and running in the state, there would be no authorized online pari-mutuel wagering platform in New Jersey, the racing commission heard last week.
Remain calm
It's a slightly concerning wrinkle, especially as the New Jersey sports betting market continues to hum along.
Again, though, state regulators and racing industry officials don't want that to happen. It seems very unlikely that they will let it happen either, whether by getting NYRA Bets operational or via renewal of a 12-year-old contract between TVG and Monmouth Park-operator Darby Development LLC.
A spokesperson for the New Jersey Attorney General's Office told Covers on Tuesday that before NYRA Bets can launch its website for state horseplayers, it needs a tote company to process its wagers. And that processor, United Tote Company, is setting up a “hub facility” in New Jersey to do so.
“United Tote also must complete successful testing,” Allison Inserro added in an email. “The New Jersey Racing Commission is working with United Tote regarding a launch of its tote operations, which will allow for a launch by NYRAbets of its website. The New Jersey Racing Commission anticipates United Tote and NYRAbets will launch their operations in advance of the expiration of TVG’s contract.”
The racing commission heard last week that the handover is a “top priority,” and one that regulators are trying to wrap up as quickly as possible. Even so, key dates, such as the Breeders’ Cup races on Oct. 31 and Nov. 1, are coming up quickly.
A little friendly competition
In the meantime, New Jersey horseplayers are left waiting for NYRA Bets and the additional ADW operators that were promised.
“This is a win for the patrons in New Jersey, allowing them to have choices for the first time as to which site they prefer to wager with,” said Dennis Drazin, chairman and CEO of Darby Development, in last July’s press release. “It’s another step in our ongoing effort to make the racing experience in New Jersey as fan-friendly as we possibly can.”
NYRA Bets is key to creating that competition. The New Jersey Racing Commission's 2024 annual report noted that in addition to taking bets, NYRA Bets will be responsible for "recruiting" other operators to offer pari-mutuel wagering.
"This will be the first time New Jersey has more than one account wagering platform available, and the first time New Jersey has two tote companies operating in the State," the report added. "(NYRA Bets) and United will begin operations in 2025. It is anticipated that these changes will benefit the State by increasing revenue, providing online bettors with more than one option, promoting competition, and result in greater public excitement for New Jersey horse racing and horse racing in general."
