CHRB Seeks Input on Exchange Wagering Rules

Exchange wagering is expected to arrive in California next year and the state horse racing board is looking for suggestions as it develops rules for the newest form of pari-mutuel betting in the United States.

Defined as a form of pari-mutuel wagering in which two or more persons place directly opposing bets on the outcome of a horse race, exchange wagering is part of a law passed last year. Under the provisions of SB 1072, the California Horse Racing Board may authorize exchange wagering no sooner than May 1, 2012.

The authorization is contingent on racing associations and horsemen reaching an agreement with one or more exchange wagering companies. While no such agreements have yet been made, the CHRB said in a statement that it "is required by law to develop exchange wagering rules and regulations that are in the best interest of the public and the California horse racing industry."

Comments and/or studies concerning the impact of exchange wagering on pari-mutuel wagering and the economic impact on California’s horse racing industry are welcome. According to the statement, all written materials submitted to the agency will be used to assist it in developing exchange wagering rules and regulations.

The 60-day written comment period commences Aug. 4 and will close Oct. 2 at 5 p.m. Submit written comments to: Harold Coburn, regulation analyst, California Horse Racing Board, 1010 Hurley Way, Suite 300, Sacramento, CA 95825; Telephone (916) 263-6397; Fax: (916) 263-6022; E-Mail: haroldc@chrb.ca.gov.

Once specific texts for proposed exchange wagering rules are developed and authorized by the CHRB for public notice, a second 45-day written comment period will commence. It will be followed by a public hearing on the proposed rules, the CHRB said.