MonmouthBets, the New Jersey-based fixed odds horse racing sportsbook, has added Parx Racing races to its platform. Bettors in New Jersey can now place fixed-odds wagers on races from Pennsylvania-based Parx.
The news came via a press release from BetMakters Technology Group, the sports wagering tech firm that runs fixed-odds betting for horse racing sportsbooks in the Garden State.
Parx COO Joe Wilson said in the press release that joining Monmouth’s fixed-odds offerings presents “new ways” for bettors to participate in horse racing.
“We are dedicated to offering bettors the best possible racing and wagering experience, and taking advantage of new ways to enjoy the racing we are so proud to offer here in the Philadelphia region is one of the ways we can do that. BetMakers has been a strong technology and service partner to Parx Racing and their investment and performance in the Mid-Atlantic racing industry gives us confidence that offering our racing for fixed odds betting in New Jersey will be a win for all of Parx Racing’s stakeholders.”
Fixed-odds betting on horse races is only legal in two states: New Jersey and Colorado. However, while legal in Colorado, it’s not available to bettors yet.
Fixed odds vs. parimutuel betting: How they differ
When a bettor opens a New Jersey sportsbook app and places a wager on, say, a game between the New York Giants and Dallas Cowboys, they place a fixed-odds bet.
Once that bet is placed, the odds are locked in. So, if the bettor locked in a +500 moneyline wager on the Giants five weeks before the game, those are the odds they gets even if the Giants moneyline drops to +200 just before kickoff because Dak Prescott is out with an injury.
Parimutuel wagering is somewhat the opposite of fixed odds. Using the Giants-Cowboys as an example, if you bet on the Giants at +500 five weeks before the game and the moneyline eventually moved to +200, then your payout would be calculated with +200 odds. That’s because parimutuel wagering is based on what you and others bet.
If the Giants win, then the sportsbook totals up all bets on the moneyline, takes their cut, then distributes the rest evenly among those who bet on the Giants.
Pros and cons
Both betting types have their pros and cons. Fixed-odds betting can be great if you get in on an underdog early, but it can be tough to land a winning bet since sportsbooks are relatively savvy when it comes to setting odds. Parimutuel betting can lead to big wins if you bet on a horse that becomes a huge underdog, but it can be tricky to know how your fellow bettors will wager as the race draws closer.
Why fixed-odds betting on horse races matters in New Jersey
New Jersey is one of the leading sports betting markets in the United States. Since sports wagering launched in the state in 2018, it’s generated nearly $3 billion in revenue.
All that action means that there are hundreds of thousands of people in the state who are familiar with fixed-odds betting. This represents a huge market for horse racing, which has battled a decline in popularity over the past decade, and Monmouth Bets.
Instead of spending resources marketing parimutuel wagering to bettors who may be hesitant to try a new type of odds, track and racing sportsbook operators can now offer the same odds framework that sports bettors are used to. That easy transition from popular fixed-odds sports like football, basketball, and baseball to horse racing could be a lifeline for the horse racing industry.