Fixed-odds future?
Penn Entertainment has inked a deal with an Australian sportsbook that has its eyes on a fixed-odds betting future in the US.
On Tuesday, BetMakers Technology Group announced a revised three-year agreement with its historic partner for the international distribution of Penn’s racing content for fixed odds, derivative bets, and exchange wagering.
bring their quality racing content to a wider audience”
BetMakers CEO Jake Henson expressed delight in the renewed deal with Penn he said would: “deliver returns to their horse racing stakeholders and bring their quality racing content to a wider audience.”
The move comes just as the Aussie gaming brand is rolling out its Monmouthbets product across more of the US in a confident expansion buoyed by its fixed-odds strategy.
According to reports, investors see the opportunity too, with BetMakers’ shares rising over 3% in recent Wednesday trading.
Fixed-odds strategy
The bigger picture is that BetMakers is pursuing a wider strategy with the launch of its Monmouthbets digital tote platform (which includes fixed-odds markets) via Monmouth Park’s operator using an Oregon Racing Commission (ORC) license “to serve eligible bettors in multiple US states.”
traditional pari-mutuel volumes level off.”
BetMakers will now pipe its Penn racetrack-related content to international fixed-odds and exchange markets, in what Finimize stated will help US racetracks attract “new audiences as on-course and traditional pari-mutuel volumes level off.”
The UK financial firm added that licensing Monmouthbets via the ORC “highlights how regulators are leaning on long-standing racing frameworks to extend online wagering across state lines.”
Setting an example
Finimize concluded that the BetMakers strategy could be adopted by other racing-oriented platforms as a cheaper way of expanding, while “helping states and track operators keep tax and fee revenue flowing even as bettors gravitate toward all-in-one gambling apps.” Last month, the New York Racing Association (NYRA) testified to the State Assembly that introducing fixed-odds betting would bring in $30m in tax revenue.
Penn’s Vice President of Racing, Chris McErlean, meanwhile, said that his firm looked forward to working with BetMakers to “maximize the value of our racing assets and provide new opportunities for our racing stakeholders.”
