The Michigan Gaming Control Board (MGCB) has granted licensed online sports betting operators in the state permission to offer fixed-odds wagers on horse racing. This significant change allows bettors to lock in the odds displayed when placing a bet, which began on Friday, October 30.
Operators now have the option to provide fixed-odds betting in addition to traditional pari-mutuel wagering, where the payouts are dependent on the overall betting pool, and odds fluctuate up until the race starts.
MGCB Executive Director Henry Williams noted, "This change reflects where the horse racing industry itself is heading." He emphasized that bettors have expressed a desire for the “straightforward, locked-in odds experience” they are familiar with from sports betting. Williams also mentioned that the new offering will remain under strict regulation.
"Adding fixed-odds wagering to our catalogue lets us meet that demand while continuing to support a fair and well-regulated horse racing market in Michigan," he stated.
These fixed-odds horse racing markets will be incorporated within existing online sportsbook platforms, providing bettors the convenience to place wagers on horse races alongside other sports events.
The MGCB assured that all existing safeguards related to Michigan's sports betting market will apply to the new betting format. This includes strict licensing requirements, verifying age and residency, as well as implementing responsible gambling tools.
Unlike pari-mutuel betting, where payouts can vary, fixed odds provide bettors with certainty regarding the wager price at the moment of the bet. This betting format is commonly utilized in European markets and retail betting environments, offering operators greater control over potential payouts compared to shared betting pools.
Mobile betting on horse racing was first introduced to Michigan's regulated online betting market in January 2021, aligning with the industry's goal of providing racing options tailored for customers accustomed to sportsbook-style interfaces.
Several other US states and operators have also explored or implemented fixed-odds racing, with New Jersey leading the way as the first state to legalize this betting style in 2022.
Licensed platforms are allowed to begin offering these wagers starting October 30, pending platform approvals and MGCB oversight.
