The Pros and Cons of Off Shore Wagering

Prior to the dawn of the internet age, horse players had very few choices regarding where to bet. You could go to the track or, later on, the local OTB parlor - that’s it. There was no competition for your dollar.

Today, the account wagering customer is faced with an overwhelming number of choices of whom to do business with. These can be broken down into two general groups of providers – “On Shore” providers located in the U.S. or Canada, and “Off Shore” providers located in places such as Antigua and Costa Rica. All of these offer either easy interface web sites, toll free telephone betting options, or both. However, there are pros and cons to each. Ultimately you will need to decide which to use based upon your individual preferences.

Rebates and Bonuses
The most compelling reason to use Off Shore providers is the availability of rebates and other bonuses. For instance, VIP Horses offers a 15% rebate based on your net losses. Further, VIP, as well as Racebook.com offer bonuses of 5% to 20% of new deposits in your accounts. Indeed, Racebook.com offers more generous bonuses in lieu of rebates.

While some efforts have been made in the harness industry, On Shore providers simply cannot offer rebates and bonuses on the same scale offered by their Off Shore counterparts. While both must pay the track where the race is being held for their signal, On Shore providers are required to subsidize local racing and to pay a percentage to their home states or provinces. Off Shore providers have substantially lower costs in this regard allowing them to pass savings on to customers in the form of rebates and bonuses.

Exchange Wagering
As another angle intended to lure customers Off Shore, some providers including eHorse.com now offer fixed odds bets. Odds are set by the Off Shore provider and your odds are not adjusted as other wagers are placed. Other "Exchange Wagering" products include options to bet horse-to-horse matchups and to bet directly with other individuals in the "market".

Betting Limitations
Off Shore providers frequently limit the maximum size of bets and payouts. This is necessary because, although they offer actual on track odds, the bets they take are not part of the track pari-mutuel pool like On Shore providers. Rather, they are true bookmakers in that they pay winnings out of their own revenues. Limits are therefore necessary to prevent potential manipulation of odds and to limit unhedged exposure. Because they do not participate in the track pools, some Off Shore providers actually stop taking bets three minutes before post. eHorse.com, however, promotes its practice of taking bets right up until post time.

Available Tracks
Off Shore providers typically do not offer as many "minor tracks" as their On Shore counterparts. VIP Horses, for instance, focuses principally on major thoroughbred tracks, covering only a few major harness tracks. Racebook.com is the only Off Shore provider of which I am aware that offers wagering on Greyhounds and Jai Alai. None of the Off Shore services offer wagering on Buffalo Harness, Ocean Downs, or the minor Canadian tracks, all of which offer great video feeds.

Of the nationwide On Shore providers, as far as I am aware, only Youbet.com, and 866WinLine offer the smaller Canadian tracks. Youbet, of course, requires a monthly fee for video feeds and other premium services. Similarly, XpressBet requires no payment to set up an account, which can be done online, and provides free access to video feeds from the Magna Entertainment family of tracks (Pimlico, Santa Anita, etc.) with the establishment of this free account.

On Shore providers have their restrictions as well. Most nationwide providers, such as Youbet.com and XpressBet, are not available in all states. Some states, such as New York, restrict the tracks available to customers in those states. Off Shore providers generally offer all of the tracks that they carry to all of their customers.

Ease of Using Credit Cards
As a result of concerns regarding off shore casinos, credit card providers have become subject to a greater degree of regulation. To comply with this regulation, some banks will not allow credit card transactions with Off Shore race books. All of these banks will allow deposits into Neteller, Firepay and similar internet accounts set up to protect consumers from misuse of their credit cards by internet vendors. These accounts can then be used to fund Off Shore account wagering sites and to conduct other transactions on the internet. In addition, these accounts expedite payment of your winnings. Triple Crown Race and Sportsbook actually guarantees credit card payments will be accepted via Western Union and will pay related fees for deposits over $200.

Most On Shore providers support direct credit card payment on the internet. Canadian provider HorsePlayer Interactive requires faxed or mailed credit card information, which supports subsequent charges authorized by telephone. 866WinLine receives and distributes payments by mail.

Legal Issues
In general, Account Wagering on horse racing is the only form of internet gambling that it indisputably legal in the United States pursuant to the federal Interstate Horseracing Act, although local laws may impose restrictions in some states. The World Trade Organization has ruled that the U.S. must allow Off Shore services to compete with their On Shore counterparts. Off Shore providers are licensed by the countries in which they are located. Off Shore providers have made legal contractual arrangements with the tracks they offer pursuant to which they share a percentage of the wagers they take with those tracks. Finally, regulation of credit card transactions complicates but does not prohibit Off Shore account wagering.

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