The biggest and most well known exchange is Betfair, and after a 7 year long battle to break into the US market they finally launched the first US betting exchange in May 2016. Betfair US have been providing the service to American punters at the New Jersey Monmouth Part racetrack from May, in partnership with Paddy Power and Darby Development.
Initial exchange operations are focused on horseracing, though it won't be lost on US punters that exchanges cover the full range of sportsbetting options.
Up to now Betfair have been running a betting operation using 4NJBets - a sportsbetting site who's Customers have got first try at the new exchange in a closed beta trial. Betfair also runs an online casino in New Jersey in conjunction with Atlantic City’s Golden Nugget casino.
Although initial results have reportedly been strong, it may take US punters some time to catch on to the big value that can be obtained. To help, Betfair are setting up an exchange simulator to help punters learn about the offer.
The full list of tracks which have made agreements to offer Exchange betting include Monmouth Park, Woodbine, and the tracks running live in Louisiana and West Virginia. In Canada, Woodbine racegoers can also use the service.
One element that might disturb prospective Customers is the 12% commission which will be charged on the win that comes out of any positive return exchange bet. In the UK, this figure is significantly lower, though we need to recognise that the liquidity in the US market may initially be low. Betfair need to cover their costs.
Liquidity In The Exchange Markets? What's That?
Bovada is the largest and most famous of the USA online sports betting sites. This firm has been in operation since 2011, when it morphed out of Bodog. The latter named sportsbook was split according to its geographical target markets and Bovada was the brand created purely for the American players. Efforts by States to Get Sports Betting In mid-2018 the Supreme Court ruled that the PASPA act of 1992, that banned sports betting was illegal and thus it has been overruled. From there on out, many states rode the wave and decided to cash in on the potential, as federal taxes are due on every winning bet.
Clearly the understanding of how exchanges work needs to be built up in the heads of US bettors. Unfortunately this presents somewhat of a chicken and egg situation. To be successful an exchange needs to have plenty of cash being wagered - plenty in the pools to build up the chances of higher odds being available.
If there are not enough takers of the odds on offer (the exchanges Customers), then the layers will be prevented from offering higher odds. Everyone's out to make a profit, right? This is what's known as liquidity - essentially the volumes of money that make the betting markets viable.
Betfair obviously have a task on their hands to build up solidly and hopefully quickly - get as many US punters on to the Exchange as they can and show everyone the value.
So Really - What Value Do Betting Exchanges Give?
All of this talk about extra betting value for US sportsbetting fans is great of course, but it's worth knowing exactly how betting exchanges deliver that value. It's a big subject, and one which is already covered in many online articles so let's take a look at a few of the best:
The most obvious place to start is on the Betfair US exchange site itself, where you'll find plenty of info that'll help you get started.
Another option is to visit Wikipedia, the online encyclopedia which covers pretty much everything. The Wikipedia betting exchange article offers a great introduction.
Next up is a short BBC article on exchange betting which gives a clear description of how it all works. It's nearly ten years old but still worth a look.
Lastly this lengthy write up on betting exchanges at BettingMarket.com will take you deeper into the intricacies of the subject, explaining in specific terms how exchanges work and more importantly, how they deliver great value to betting fans.
For some more visual explanations there are dozens of useful betting exchange videos on Youtube channels.
These below specifically give a good - although basic - visual introduction. The first is Betfair's first promotional video for the new US exchange, the second comes from BetAngel and gives an introduction to exchange betting in general.
When the Supreme Court struck down PASPA in 2018, it opened the door for every state in the country to legalize betting on sports— if the state wanted to. Some states were quick to act, others were not so quick, and a few have no interest at all.
But since 2018, 25 states have legalized some form of sports betting, either in-person, online, or both; sports betting has gone live in 20. Last year, Washington D.C. and five states took their first legal bets.
Three states had voters give their government the green light to move forward with legalizing sports. Whether that is online or in-person remains to be seen. But if states want to maximize their revenue potential, online and mobile betting is the wave of the future.
Online Sports Betting In 2021
So far, only 15 states have launched online sports betting. Michigan became the latest when it launched on January 22, 2021, with ten sportsbooks going online.
Virginia launched online betting the day before. FanDuel was the first to launch but has already been followed by DraftKings, BetMGM and BetRivers.
Prior to Virginia and Michigan, the last state to launch online betting was Tennessee in November 2020.
As for who is next, the obvious candidates are the five states that have voted to legalize sports betting but have yet to launch: Washington, North Carolina, Louisiana, Maryland, and South Dakota.
But Maryland is the only one of the five to approve of both online and in-person betting. However, legislation still needs to be passed and a regulatory framework established. Pi gao poker.
Maryland sounds like the most promising state to launch online betting next. Technically, Washington could beat them to the punch. But in Washington, mobile betting will only be allowed while physically on the premises of one of the state’s tribal casinos.
Future US Sports Betting States
Of the states where sports betting is legal but has yet to launch online, it is hard to say if any of them will make a move this year (if ever): World of wheels 2020.
- It has been discussed in Arkansas, but there is no reason to think anything will change.
- Delaware was the first to legalize sports betting following the Supreme Court’s decision in 2018 but has shown no interest in allowing online betting.
- New Mexico is not licensing online sportsbooks, but that could change if the Gaming Recovery Act proposed last year becomes law.
Technically, Mississippi and Montana have mobile betting, but only while bettors are present at a retail location.
With the outlook for online betting looking dim in many of the states where sports betting is legal, there is a good chance the next state(s) to launch online may be one that has yet to approve legislation. There are currently 12 states with legislation under consideration.
Us Betting Sites
But many are only considering sports betting at retail locations. As for online betting, some of the more promising states include:
- Connecticut: It has been under discussion for some time with several bills on the table. The hold-up seems to be the inability of the state and tribal groups to figure out how to do it. DraftKings’ recent partnership with the Foxwoods Resort and Casino may speed things along.
- Massachusetts: The Bay State is another state where the problem does not seem to be whether they should legalize sports betting, but how. Last year, lawmakers tried to tie in a sports betting bill with Coronavirus relief. But other lawmakers favored making a separate bill altogether to approve sports betting. The interest seems to be there; it is just a matter of making it happen.
- Kansas: A bill made it through the Kansas Senate last February but stalled when the pandemic hit. Whether it is revived or not, there does seem to be substantial interest in legalizing betting online and at retail locations.
Us Betting On Election
There has also been renewed interest in New York since Governor Cuomo decided to reverse course and support online sports betting.