Betfair Betting Exchange License Granted by New Jersey

After four years, New Jersey has finally granted the Betfair betting exchange license, making it the first of its kind that is both legal and regulated in the US.

In US gambling news, UK-based online gambling operator Betfair has received its long-awaited betting exchange license from the New Jersey Racing Commission. While Betfair is known worldwide for permitting gambling on just about anything—from election outcomes, to sport victories, to the weather—in the US the Betfair betting exchange license will be used only for horserace betting in partnership with Monmouth Park Racetrack.

Betfair had initially applied for a license back in 2011, when NJ residents had just voted in a referendum in favor of sports betting being legalized in Garden State casinos and racetracks. Citing the Professional and Amateur Sports Protection Act of 1992, major sports leagues managed to challenge the referendum results, which stalled the acquisition of the Betfair betting exchange license.

The Betfair betting exchange license explained

Is Betfair key to revitalizing the NJ horseracing industry?

The betting exchange model is a new concept to many US players who like to bet on sports in US. It was invented by Betfair in 1999 and has since enjoyed immense popularity across the UK and the world.

In short, a betting exchange is an online network that offers peer-to-peer wagering, where bettors, not bookmakers, are the ones who set the odds, so long as one of their peers is willing to match those odds. As such, odds on a betting exchange tend to be better than those offered by bookmakers. The betting exchange operator—in this case Betfair—acts as an arbiter for these dealings and typically takes a small commission on winnings.

When it comes to betting exchanges, the more users it has, the greater the service it provides. NJ is hoping that by granting the Betfair betting exchange license and putting the model in place, it will spark new interest in the state’s horseracing industry and attract a large user base, making it a win-win for both the NJ public and Monmouth Park Racetrack.