Betfair, the industry’s biggest betting exchange platform, has opted to close down its only US exchange operation in New Jersey. This comes as handle numbers didn’t record any reasonable growth since 2016 when they first launched the platform. This is according to the racing officials in New Jersey. As a result, Betfair will close its New Jersey platform as of the beginning of October. Despite the most recent handle numbers being unavailable, the Racing Commission of New Jersey records shows that they took $12.4 million in bets in 2018. Indeed, this is roughly equal to the amount of money bet in just one weekend of racing at Belmont Park.
A Limited Service
The President of Monmouth Race Track in New Jersey, Dennis Drazin, said that he’s sorry to see it close down. Originally, Monmouth Park inked a deal with Betfair to introduce exchange betting on its races back in 2016. This help to catapult the brand in New Jersey, where it first set up shop. However, the state’s rules meant that it was only open to New Jersey residents and Betfair’s patron in other jurisdictions.
Failing to Make a Mark
As you may remember, Betfair bought out horse racing broadcasting company, TVG, in 2009. This was to get a foot in the door of the US market. As such, it could legally lobby legislatures to conduct its business in the US. As a result, it managed to get legislation passed in New Jersey and California. This allowed exchange betting to take place. However, it was only New Jersey that wrote regulations. So, it meant the company could offer exchange betting in the Garden State only. In other countries, exchange betting is very popular. However, these countries already have very well-established betting industries. In the US, they need more than just the state of New Jersey onboard, and it looks like they just aren’t ready yet.