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PointsBet introduced its new horse racing app this morning, coinciding with the Kentucky Derby. However, sports bettors in Illinois will have to hold off on using PointsBet Racing for now.
Paul Hannon, the senior vice president of corporate development at PointsBet, stated in an interview with Play Illinois:
We are excited to receive approval from the Illinois Racing Board and plan to launch the app in partnership with our esteemed partner, Hawthorne Race Course, as soon as possible.
Investing in innovative products like the PointsBet Racing app and the resulting halo marketing impact will drive the future growth and sustainability of horse racing in the state.
Just to clarify, PointsBet’s primary sports betting app is active and thriving in Illinois. It holds the fourth position in market share among the seven legal apps, capturing nearly 8% of the total market.
Horse racing now embracing sports betting
The horse racing industry, which previously resisted the rise of sports betting, is now welcoming and integrating it.
Hannon stated that the belief that sports betting is detrimental to horse racing is a common misconception. He explained that major players in the horse racing industry have recognized the potential for sports betting to increase the distribution of their content, the races, and have adjusted their strategies accordingly.
This presents a unique chance for the horse racing industry to increase its exposure to millions of new viewers annually. By investing in marketing for innovative products such as the PointsBet Racing app, the industry can expand its reach and distribute content on a larger scale than ever before. For stakeholders looking to grow the sport and boost revenue, partnering with companies like PointsBet is a strategic move.
Despite the significant growth of betting on other sports in Illinois, Hannon emphasized that horse racing remains a crucial component of PointsBet’s offerings.
“As operators continue to refine their products, horse racing stands out as a crucial component of the sporting calendar from a content standpoint. This recognition was made early on due to our company’s deep connections to the sport, both domestically and internationally.”
We believe that horse racing has the potential to become one of the top 10 most wagered on sports in the US. This is our goal with the PointsBet Racing business and our partnership with 1ST TECHNOLOGY, starting with ADW.
PointsBet Racing now live in 25 states, but not yet Illinois
A press release announces that PointsBet Racing has launched in 25 additional states, offering users a standalone app for a modern and comprehensive horse racing experience.
PointsBet and 1/ST Technology, a division of The Stronach Group, entered into a multi-year strategic partnership in October 2022. 1/ST Technology is responsible for powering the advance deposit pari-mutuel wagering platform for PointsBet Racing.
According to the press release, PointsBet Racing offers content from the world’s best tracks, including all legs of the prestigious Triple Crown, with a total of over 180 tracks from countries such as the US, UK, Ireland, Hong Kong, Japan, and Australia. The platform will feature live streaming and replay options, a single user account sign-on, deep link integration across all PointsBet digital products, top statistical and favorite factor compilation, new user educational tools, and easy deposit and withdrawal options.
In the statement, PointsBet USA CEO Johnny Aitken expressed excitement for the launch of PointsBet Racing, calling it a major achievement in their goal to broaden their product offerings and tap into the vast potential of the American horse racing market. Aitken mentioned their success in other established betting markets where horse racing is a popular form of engagement, and expressed confidence in replicating that success in the US. He believes that this new offering will help stimulate growth in online horse racing in the US and looks forward to going live in time for one of the biggest racing events of the year.
PointsBet Racing is now available in the following states, with nine (highlighted in bold) that do not currently have legal regulated sports betting.
- Alabama
- Colorado
- Delaware
- Florida
- Idaho
- Indiana
- Iowa
- Louisiana
- Minnesota
- Montana
- Nebraska
- New Hampshire
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Dakota
- Tennessee
- Vermont
- Washington
- West Virginia
- Wisconsin
- Wyoming
Pari-mutuel betting is an entirely different gambling system
Fixed-odds betting can be found on the seven regulated Illinois sports betting apps, while pari-mutuel betting offers a unique and distinct gambling experience.
Pari-mutuel wagering is a method where bets are collected into a pool, a portion is taken by the house, and the remaining amount is divided among winning bets to determine the payout odds. This system is essential for funding the expensive endeavor of owning and training racehorses and organizing horse racing events.
However, unlike fixed odds, pari-mutuel odds change depending on the amount of money bet on each horse. For instance, you could initially bet on a horse at odds of 10-1, but as other bettors place their bets, the odds on that same horse could decrease to 5-1 by the time the race starts. Therefore, even though you placed your bet at 10-1, you would ultimately receive odds of 5-1.
By utilizing the pari-mutuel system, you have the benefit of competing against fellow bettors rather than the casino. This means that having a strong understanding of horse racing and skill in handicapping can give you an edge over less knowledgeable opponents.
Pari-mutuel betting has been challenging to incorporate into standard sports betting apps because of its unique wagering system. As a result, PointsBet Racing currently exists as a standalone app. However, it is expected that pari-mutuel betting will soon be integrated into mainstream sports betting apps.
All of that is irrelevant at least for this year if you were planning to place a bet on the Kentucky Derby in Illinois through PointsBet Racing.
Fixed odds betting on horse racing is also coming, at some point
Hannon mentioned that fixed-odds betting on horse racing will be available in the future.
Hannon stated that building a bridge from the pari-mutuel system to one that includes fixed odds racing on all major sports betting platforms will require time and careful consideration of economic factors. He believes that this transition may take a few years, particularly in states where there is reluctance to pass gaming or racing legislation.
ADW remains the primary means of growth in racing today, which is why we are introducing PointsBet Racing to our players. Personally, I am eagerly anticipating the introduction of live, in-race fixed odds betting on horses after the gates have opened. This new feature promises to be truly thrilling.
