Exchange Wagering Rules Approved in California

by | 08.06.2013 | 8:05pm

The Office of Administrative Law notified the California Horse Racing Board today that all exchange wagering rules have been approved and are effective immediately. However, even though the regulatory framework is now in place, exchange wagering cannot begin in California until an agreement is reached between one or more exchange wagering companies, a racing association or fair, and horsemen, and then approved by the Board.

Exchange wagering is a non-traditional form of pari-mutuel wagering between two bettors – one backing a horse and the other wagering against the horse at agreed-upon odds.

The OAL action completes a regulatory process that began two years ago. The Board conducted numerous public hearings before eventually approving 25 rules for the  regulation of exchange wagering, including rules covering license applications, operating plans, monitoring systems, and financial and security audits of exchange wagering providers. Those rules were submitted to OAL for review and approval, and some were resubmitted to address OAL concerns.

The Horse Racing Law and regulations require any exchange wagering company to reach an agreement with a racing association or fair and the horsemen responsible for negotiating purse agreements. The provider must submit the agreement along with an application to the CHRB at least 90 days before the expected start of exchange wagering. Exchange wagering can only begin if the Board approves the application at a public meeting.

All exchange wagering regulations can be viewed on the CHRB Website ( through the links Board/Rules and Law/Important Rule Updates (Modified Text-Part 1, Modified Text-Part 2, and Non-Modified Texts).

  • Tinky

    Oh no! The sky is falling!

    • gues

      It has fallen, laugh your way to the grave

  • TJS

    The only tracks in Cali that will allow wagering MIGHT, and I mean MIGHT be the fairs. the Stronach Groups Santa Anita and Golden Gate have already stood firm and will not allow the wager. DelMar is leaning that way as well. There won’t be enough liquidity in the fair wagers to make a dent. A lot of maneuvering for nothing. Move on

    • harry

      TVG involved with Del Mar and sponsoring the Pacific Classic I don’t think Del Mar will have any problem with having this nonsense wagering. Del Mar horseman maybe a different opinion. TVG and Twinspires are involved in this wagering so don’t so no to Santa Anita jumping in on this wagering nonsense. Cal-Expo already has signed contract with TVG according to TVG. I personally am tired of hearing about this so let the games begin. Thank goodness only California partcipating but now it will be hard to watch TVG and HRTV because that is all they will talk about which will be sad.

  • Guy Fleegman1

    Another thing California Horse Racing can screw up!

  • Jerry

    No liquidity, no interest, no integrity, reduced purses………………..
    Let’s see how long it takes for Pegram’s TOC to support it!
    P.S. It’s a great way to “WIN” when you “stiff your 8/5 favorite!!!

  • DonW

    I don’t really see the difference between exchange wagering and all the financial instruments available to stock market investors, such as short selling, options, etc. Wagering in horse races is vastly over-regulated, originating as it did in an era when it was considered a “sin”. The fact that if a track wants to have a new type of bet needs Racing Board approval is silly and a needless intrusion of government into the private sector. The job of the Board should be to ensure the integrity of racing, and leave wagering to the race tracks. The more wagering there is, the healthier racing and breeding will be. What the wagers are is up the tracks and bettors.

    • Sandra Warren

      And look how rigged everyone thinks the stock market is now. All these esoteric options drive the public away from trusting pari-mutuel racing. They don’t enhance trust.

  • Sandra Warren

    Absolutely terrible decision. As if we don’t have enough problems. They can’t even get the tote to report the right odds until after the bell rings. As soon as every race starts, money pours in from God knows where, and 2/1 horses become 3/5. This is only going to become a viper’s nest of gossip about who manipulated what result for what gain. What a shame.

  • we’re watching

    Betfair who’s hemorrhaging money is behind this debacle. It’s a big black eye to integrity.

  • keyraceray

    If two bettors agree on a wager, the Board can take a long walk off a short pier.

  • Patrick O

    It’s clear many of the commentors have never seen a BetfFair (TVG) run horse racing market in action. You would rather have tracks keep raking 20+% than dropping it down to 10%? You would rather continue betting horses at 2:1 only to have them drop to 4/5 when the tote updates after the bell? Wouldn’t you rather know that you’re locked in at 2:1?

    Exchange wagering will renew interest in horse racing, expand the audience and increase the number of bettors. TVG is willing to guarantee tracks year over year profit matching so they can agree to allow exchange wagering with no risk what so ever.

    What exactly is it that you’re railing against?

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