Fixed-odds horse racing betting is uncommon in the United States, but some in the industry believe it may hold the key to revitalizing horse racing and appealing to a younger crowd.

Colorado and New Jersey have already approved fixed-odds betting at tracks and online sportsbooks, and regulators in several other states are considering the idea. Read on to learn about the current state of fixed-odds racing betting in the USA, where it’s legal, and how it works.

How Fixed-Odds Horse Racing Betting Works

Fixed-odds horse racing betting works like standard sports betting. The sportsbook or racetrack posts the odds, and customers get paid according to those odds if they win.

That’s in contrast to pari-mutuel wagering, which is by far the most common betting format in the US racing industry. In pari-mutuel wagering, the track collects all wagers of a single type into a common pool, keeps a percentage as commission for the house, and pays winners with what remains.

The differences between the two formats have significant implications for bettors.

Fixed-Odds Bets Are Not Subject to Surprise Price Changes

Most notably, pari-mutuel wagering odds are not fixed in place. Even after bettors submit their wagers, the odds can fluctuate. A horse priced at 5-1 the day of the race may shorten to even money by post time if enough money comes in on that horse throughout the day.

Fixed-odds horse racing betting locks in customers’ prices after they submit their wagers. As a result, there is no uncertainty in how much the bettor stands to win on any horse.

Oddsmakers can shift fixed-odds prices over time, but bettors always lock in their prices when they submit their wagers. In other words, someone who places a bet at 5/1 or +200 will receive that payout even if the odds shift later in the day.

Fixed-Odds Betting Pits Bettors Against the House

Another difference is that pari-mutuel wagering does not pit bettors against the house. Instead, tracks take a percentage of every betting pool off the top and pay the winners with what remains, meaning the house has no interest in the outcome of any wager.

In comparison, fixed-odds betting pits customers against the house. Bettors who successfully handicap horse races and score frequent wins can eat into the house’s profit. As a result, one concern for bettors is sportsbooks limiting them if they start winning too much.

Legal Fixed-Odds Horse Racing Betting Sites

Bet365.com in Colorado and MonmouthBets.com in New Jersey are the only fixed-odds horse racing betting sites licensed to operate in the United States.

Bet365 (Colorado)

Bet365 offers fixed-odds horse racing betting in Colorado through its online sportsbook app and website for customers 21 and older.

The Bet365 fixed-odds horse racing betting platform relies on SIS (Sports Information Services) technology to deliver live video and odds from more than 140 racetracks to Colorado bettors.

The vast majority of Bet365’s fixed-odds betting markets originate from international racetracks, but SIS has confirmed it will continue to expand its US offerings for Colorado bettors.

Monmouth Bets (New Jersey)

MonmouthBets.com is New Jersey’s only authorized fixed-odds horse racing betting site. It operates as a partnership between Monmouth Park Racetrack and international business-to-business supplier BetMakers.

The Monmouth Bets app specializes in fixed-odds betting exclusively and is open to customers 18 or older who are physically present within New Jersey.

Monmouth Bets has slowly expanded its track coverage since launching and now offers fixed-odds betting on just over a dozen race tracks in the United States, Canada, and elsewhere.

Some of the higher-profile tracks and events for which Monmouth Bets offers fixed-odds betting include:

  • Monmouth Park
  • Penn National Race Course
  • Parx Racing
  • Tampa Bay Downs
  • Canterbury Park
  • Delaware Park
  • Hawthorne Race Course
  • Emerald Downs
  • Century Mile
  • The Monmouth at Meadowlands meet
  • The Far Hills Race Meeting

Where Fixed-Odds Horse Racing Betting is Legal

Colorado and New Jersey are the only states that have legalized fixed-odds racing wagers. In both states, licensed sportsbooks may contract with race tracks to offer fixed-odds betting on horse races held at their tracks.

In other states, fixed-odds horse racing betting is still a longer way off. In those states, fixed-odds betting will remain exclusive in the domain of sports betting in the meantime. Legal online sportsbooks in all states offer wagers in the fixed-odds format by default.

As fixed-odds horse racing betting gains momentum in the United States, BettingUSA will update this page with information on where to bet online and in person.

Colorado Fixed-Odds Horse Racing Betting

In March 2022, the Colorado Limited Gaming Control Commission (LGCC) approved sportsbooks to offer fixed-odds betting on horse races on an 18-month trial basis.

Under LGCC rules, Colorado sportsbooks that wish to offer fixed-odds betting must reach agreements with horsemen’s associations, state racing commissions, and host tracks.

Regulators established the rules to allay fears that fixed-odds horse racing betting in Colorado will cut into track revenue by allowing bettors to stay home and place bets that don’t comingle with each track’s pari-mutuel wagering pools.

Bet365 Sportsbook launched fixed-odds horse racing betting in Colorado in February 2024. That made Bet365 the first online sportsbook in the United States to integrate fixed-odds betting into its other offerings.

New Jersey Fixed-Odds Horse Racing Betting

New Jersey passed legislation in 2021 allowing race tracks to offer fixed-odds wagers on their races.

Experienced Australian firm BetMakers has an agreement with the New Jersey Thoroughbred Horsemen’s Association (NJTHA) and Monmouth Park to serve as the exclusive fixed-odds distributor for thoroughbred racing in New Jersey.

BetMakers initially signed a 10-year agreement but revised the term upward in January 2022 to last for 15 years. As a result, all sportsbooks that wish to offer fixed-odds wagers on New Jersey horse races must first reach agreements with BetMakers.

According to Monmouth Park Chairman and CEO Dennis Drazin, all NJ sportsbooks that reach agreements with BetMakers to offer fixed-odds betting on races pay a 4% fee on wagering turnover. BetMakers allocates money collected from the fee to the NJTHA, Monmouth Park, and each host track (including out-of-state tracks).

Monmouth Park fixed-odds betting began in May 2022, and online wagering followed several months later with the launch of MonmouthBets.com.

Fixed-Odds Impact on Horse Racing

The expansion of legal sports betting in the US, combined with a stagnating horse racing industry, has prompted many in the industry to consider fixed-odds horse racing betting as a potential catalyst for revitalization.

Industry stakeholders often point to Australia, which saw significant increases in purses since it introduced fixed-odds horse racing betting more than a decade ago.

BetMakers CEO Todd Buckingham put it this way when describing the opportunity fixed-odds betting presents to US horse racing:

“We have been working with racing bodies and bookmakers from all parts of the world to develop the best solution that fits into the horseracing ecosystem. We believe that U.S. horseracing has the potential to be the largest betting sport in the U.S, including basketball, American Football and baseball. There is a real opportunity for the U.S. horseracing market to grow like it has in Australia, which has seen prize money levels double over the past 7-10 years based on a funding model that is equitable to all participants.”

Louisiana HBPA executive director Ed Fenasci put it even more bluntly at the 2022 National HBPA Conference:

“This is the future of horse-race wagering in the United States. Not this year, five years from now. This model of sports book wagering has competed very well with other forms of gaming. The pari-mutuel model has been eroding over the last 30 years. It’s not standing the test of time when other forms of gaming come in and capture the attention of the customer base.”

Speakers at the National HBPA Conference also addressed concerns that fixed-odds betting could cannibalize pari-mutuel wagering at race tracks.

National Horsemen’s Benevolent & Protective Association CEO Eric Hamelback said tracks could expect some cannibalization but that the resulting expansion of horse racing betting would cover any losses and then some.

Hamelback also reminded attendees that the Interstate Horse Racing Act of 1978 still applies to fixed-odds wagering. As a result, race tracks and horsemen still hold considerable negotiating power to ensure the industry benefits from fixed-odds horse racing betting conducted by sportsbooks.

The US horse racing industry had a spectacular rebound in 2021, where it attracted the most wagering handle since 2009. However, larger trends show horse racing still struggles to maintain its staying power and prominence. In many states, horse racing purses heavily rely on alternative forms of gaming at race tracks.

Fixed-odds betting could be the answer horse racing insiders and fans are seeking in an age where alternative forms of gambling and entertainment have proliferated. If the Australian model is any predictor of what could come in the US as a result of fixed-odds racing betting, the best days of the US horse racing industry are still ahead of it.

Fixed-Odds Horse Racing Betting FAQ

Yes, but it’s not yet widely available. Two states have authorized fixed-odds betting to date: Colorado and New Jersey.

Yes. Laws in Colorado and New Jersey permit legal betting sites to offer fixed-odds horse racing betting. Fixed-odds betting is available online in New Jersey through Monmouth Bets and in Colorado through Bet365 Sportsbook.

It depends. Fixed-odds betting is more intuitive and familiar to people who have experience with traditional sports betting.

In addition, pari-mutuel wagering can frustrate bettors who place their wagers at one price only to watch it change as additional money comes in. Fixed-odds betting guarantees bettors’ prices once they submit their wagers.

On the other hand, pari-mutuel wagering offers the advantage of betting against the public rather than an oddsmaker. In some cases, the betting public is not as sharp as an oddsmaker (think a massive favorite who gets overvalued by casual observers).

Further, fixed-odds betting opens the possibility of sportsbooks limiting winning bettors.

Fixed odds do not change for individual bettors after they place their wagers. If you place a fixed odds bet at +200, that’s the price you get regardless of what happens afterwards.

However, bettors must ensure they place their wagers during the official fixed-odds window, which usually opens about 24 hours before the race. Bettors who place wagers before the fixed-odds window opens will not know their final payout odds until post time because they automatically receive the Closing Price. The Closing Price is the final fixed-odds price before wagering closes for that race.

Multiple indicators point to fixed-odds racing expanding to additional states:

  • The fixed-odds format is familiar to sports bettors.
  • It is newbie-friendly.
  • Evidence from other countries suggests fixed-odds wagering will increase interest in horse racing betting in the United States.
  • Increased horse racing betting boosts purses.

The last two points are critical because they increase the odds of fixed-odds-related legislation receiving support from lawmakers and industry stakeholders.