Off-track betting
Encyclopedia
Off-track betting refers to sanctioned gambling
on horse racing
outside a race track
.
allowed for off-track betting. It became allowed in New York City
in 1970, after years of unsuccessful attempts by the city to legalize it. Their success was such that by the 1970s there were a hundred betting parlors in New York City, and twice that number by the late 1980s. In New York City, the thought was that legal off-track betting would increase revenue while at the same time decreasing illegal gambling activity, but one effect of the legalization was the decrease of revenue at the race tracks. The 1978 Interstate Horseracing Act struck a compromise between the interests of horse tracks and owners, the state, and OTB parlors, and stipulated that OTB revenues were to be distributed among the tracks, the horse owners, and the state. Another stipulation was that no OTB parlor was allowed to operate within 60 miles of a track.
Revenues at the track indeed lessened, but rather than fight off-track betting the industry sought to increase its income via new ways of gambling, betting on the OTB potential, and came up with "exotic wagers" such as exacta and trifecta
. Thus the industry's revenue increased even as the number of spectators at the track went down.
At legal off-track betting parlors, if bettors win, they have to pay the parlor a surcharge
taken directly from the winnings. Bettors in New York can avoid paying the surcharges by placing their bets via an off-track betting corporation's account wagering service or at so-called super branches or teletheatres that charge a daily admission fee. Other jurisdictions such as Pennsylvania
do not levy a surcharge on winnings. Most booked bets are now placed with licensed services in the Caribbean
and Central America
who entice bettors by offering them rebates on their bets.
In December 2010, the NYC OTB closed due to lack of profitability
Gambling
Gambling is the wagering of money or something of material value on an event with an uncertain outcome with the primary intent of winning additional money and/or material goods...
on horse racing
Horse racing
Horse racing is an equestrian sport that has a long history. Archaeological records indicate that horse racing occurred in ancient Babylon, Syria, and Egypt. Both chariot and mounted horse racing were events in the ancient Greek Olympics by 648 BC...
outside a race track
Race track
A race track is a purpose-built facility for racing of animals , automobiles, motorcycles or athletes. A race track may also feature grandstands or concourses. Some motorsport tracks are called speedways.A racetrack is a permanent facility or building...
.
US history
Before the 1970s, only the state of NevadaNevada
Nevada is a state in the western, mountain west, and southwestern regions of the United States. With an area of and a population of about 2.7 million, it is the 7th-largest and 35th-most populous state. Over two-thirds of Nevada's people live in the Las Vegas metropolitan area, which contains its...
allowed for off-track betting. It became allowed in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
in 1970, after years of unsuccessful attempts by the city to legalize it. Their success was such that by the 1970s there were a hundred betting parlors in New York City, and twice that number by the late 1980s. In New York City, the thought was that legal off-track betting would increase revenue while at the same time decreasing illegal gambling activity, but one effect of the legalization was the decrease of revenue at the race tracks. The 1978 Interstate Horseracing Act struck a compromise between the interests of horse tracks and owners, the state, and OTB parlors, and stipulated that OTB revenues were to be distributed among the tracks, the horse owners, and the state. Another stipulation was that no OTB parlor was allowed to operate within 60 miles of a track.
Revenues at the track indeed lessened, but rather than fight off-track betting the industry sought to increase its income via new ways of gambling, betting on the OTB potential, and came up with "exotic wagers" such as exacta and trifecta
Trifecta
In horse racing terminology, a trifecta is a parimutuel bet in which the bettor must predict which horses will finish first, second, and third in exact order. The word comes from the related betting term, "perfecta". A trifecta is known as a tiercé in France and Hong Kong and as a tris in Italy.It...
. Thus the industry's revenue increased even as the number of spectators at the track went down.
At legal off-track betting parlors, if bettors win, they have to pay the parlor a surcharge
Surcharge
A surcharge may mean:*an extra fee added onto another fee or charge** Fuel surcharge, sky freight charges which represents additions due to jet fuel prices.** Bunker adjustment factor, sea freight charges which represents additions due to oil prices....
taken directly from the winnings. Bettors in New York can avoid paying the surcharges by placing their bets via an off-track betting corporation's account wagering service or at so-called super branches or teletheatres that charge a daily admission fee. Other jurisdictions such as Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
do not levy a surcharge on winnings. Most booked bets are now placed with licensed services in the Caribbean
Caribbean
The Caribbean is a crescent-shaped group of islands more than 2,000 miles long separating the Gulf of Mexico and the Caribbean Sea, to the west and south, from the Atlantic Ocean, to the east and north...
and Central America
Central America
Central America is the central geographic region of the Americas. It is the southernmost, isthmian portion of the North American continent, which connects with South America on the southeast. When considered part of the unified continental model, it is considered a subcontinent...
who entice bettors by offering them rebates on their bets.
In December 2010, the NYC OTB closed due to lack of profitability