Tech: Betmakers unveils a unique New Jersey horse racing deal; shares gallop 35pc

For the next 10 years Betmakers Technology (ASX:BET) will have an exclusive licence to distribute and manage fixed odds betting in New Jersey.

The company unveiled the deal this morning with the Monmouth Park race track, which hosts the famous Haskell Invitational stakes. It said the deal was the first of its kind for fixed odds betting on American horse racing.

Betmakers will distribute racing odds throughout the US and international markets where fixed odds betting is allowed. Under local laws, part of the turnover will have to be handed back to the race track as ‘rights fees’.

Additionally, it will launch a global racing network in New Jersey which will provide a uniformed set of standard conditions for both racing bodies and bookmakers to allow clarity of reporting and distribution of data and content.

America can learn from Down Under

While the racing season won’t begin until May, Monmouth Park CEO Denis Drazin and other Monmouth Park employees will visit Australia to learn how fixed odds works.

Betmakers CEO Todd Buckingham suggested that if the US followed Australia’s lead in betting the market could surge.

“We believe that US horse racing has the potential to be the largest betting sport in the US,” he said.

“There is a real opportunity for the US horse racing market to grow like it has in Australia, which has seen prize money levels double over the past seven to 10 years based on a funding model that is equitable to all participants.”

Betmakers shares have surged over 500 per cent since July. Today’s 35 per cent rise was modest in comparison but still makes it one of the biggest gainers on the ASX today.

In other ASX tech news today:

Online broker Selfwealth (ASX:SFW) climbed 11 per cent this morning on strong January numbers. It reported 1741 new clients in January and saw a record 32,934 trades.

Virtual reality play Vection Technologies (ASX:VR1) has deployed a series of VR training and induction courses to Italy’s biggest autonomous trade union, which has 1.5 million members. This is the second deployment following a deal with leading oil and gas international contractor Bonatti that was announced in October.

Advanced Braking Technology (ASX:ABV) provided a positive update to its shareholders today. Sales climbed 32 per cent in the first half of the 2020 financial year and 23 per cent in the last quarter – both compared to the prior corresponding period. It also reported a positive earnings result in the last quarter.