Off-Track Betting: Pros, Cons, and Online Innovations

Introduction: OTB and Thoroughbred Wagering

There is no doubt that thoroughbred wagering is a huge sport in the United States and elsewhere. It is equally clear that off-track betting (OTB) has become a very popular form of gambling — not only in the United States, but around the world. Like any issue involving money, the public, and potentially harmful habits, OTB is, always has been, and always will be, controversial.

This paper discusses gambling addiction and other negative wagering issues as part of the "con" side, including the age groups most vulnerable to addictive behaviors. It also presents the "pro" side, including food, beverage, and entertainment services offered at OTB sites; the newest OTB innovations available on the Internet, which effectively make a person's home a virtual OTB; and the fun side of wagering on horses from simulcast facilities at various tracks around the nation and the world.

The Pro Side: Thoroughbred Horseracing's Growing Popularity

An ESPN study found that 35% of American adults surveyed in 2002 were "horseracing fans," a 3.6% increase over the previous year. ESPN polls showed that horseracing, by the end of 2002, had moved ahead of the NHL and the WNBA in fan interest — a jump from #14 to #11 in overall popularity among spectator sports in the United States. (The top ten, in order: NFL; MLB; college football; figure skating; NBA; extreme sports; college basketball; NASCAR; PGA; boxing.)

According to the National Thoroughbred Racing Association (NTRA), of the 209 million U.S. citizens aged 18 or older, 84 million are "fans of thoroughbred racing." Of those 84 million fans, 3.1 million "bet on horseracing at least a few times a month"; 19.7 million "have bet on horseracing at least once or twice a year"; 10 million have done so on at least one or two occasions; and 5 million fans are "at least a little bit interested" in horse racing and attend at least once or twice annually.

Meanwhile, the fan base among 18- to 34-year-olds grew from 24.9% in 2001 to 27.3% in 2002 — a jump of 9.6%, according to NTRA data.

Also according to the NTRA, 2002–2003 was a very good year for their championships in terms of off-track thoroughbred betting — also called "pari-mutuel" betting and "simulcasting." In their Annual Report to the Membership, a record $116 million pari-mutuel "handle" — the total amount of money wagered on the Breeders' Cup World Thoroughbred Championships, often called the Super Bowl of horse racing — was bet at 9,400 U.S. and international simulcast and racing facilities. That $116 million represents a single event.

OTB Facilities: Lone Star Park's Post Time Pavilion

When the NTRA's live racing season ends in Dallas, Texas, for example in mid-July, that does not mean the end of the wagering season for the devoted horse racing fan. First, harness racing begins a couple of months later — not as popular as thoroughbred racing, but live. Second, fans can still make daily visits — seven days a week, from 11 a.m. to 11 p.m. — to Lone Star Park's 36,000-square-foot Post Time Pavilion in Grand Prairie, which features a Las Vegas–style race book for wagering on races taking place elsewhere across the nation.

Pari-mutuel technology at the Pavilion is central to the experience: admission is $2 (after $1 for parking, or $5 for valet), and once inside, 318 individual "betting carrels" — racebook-style seats — are available for $6 a day, each featuring a 9-inch TV monitor connected to all pari-mutuel races in progress around the country, with food and beverage service at the seat. Dining table seats are also available for $6, or fans can use any free public chair at no charge; standing room is free. Huge television monitors line the walls — three 9' × 12' projection screens, eleven 6' × 8' projection video screens — along with a total of 178 TV monitors.

Beyond a full bar, the Post Time Pavilion offers an extensive lunch and dinner menu, including: jumbo gulf shrimp cocktail ($8.50); a two-burger basket with fries and onion rings ($5.25); chicken breast tenders ($6.25); cheese and bacon-filled potato skins ($6.25); hot wings ($5.95); beef or chicken nachos ($7.50); grilled chicken quesadillas ($7.25); a deluxe Mexi-platter with tacos, stuffed peppers, taquitos, and quesadillas ($13.95); soup of the day ($3.95); house salad ($3.95); Caesar salad ($6.25); Cobb salad ($8.25); tuna salad deluxe ($8.95); turkey wrap sandwich ($7.95); steak sandwich ($10.25); Philly cheesesteak hoagie ($7.95); BBQ chicken sandwich ($8.25); a half-pound Lone Star burger ($6.95); patty melt ($6.95); grilled ham and cheese ($5.95); soup and sandwich ($6.95); stir-fry wok ($11.75); chicken fried steak dinner ($7.95); Lone Star steak dinner ($15.95); teriyaki shrimp and prime rib satays ($13.95); pan-roasted Atlantic salmon ($12.95); hot brownie sundae ($3.50); and lemon meringue pie ($3.95).

For breakfast, the Pavilion offers a three-egg omelet ($6.95); pancakes and eggs ($6.25); chicken fried steak and eggs ($7.95); biscuits and gravy ($2.25); and toasted English muffins ($1.50). From the bar: well liquors ($4.25); call liquors ($4.75); domestic bottled beer ($3.05); imported bottled beer ($4.00); and draft beer at $3.25 per glass.

No specific financial data is readily available on the profitability of Lone Star Park's food service operation; however, it is a safe bet that food and beverage generate substantial revenue — particularly on weekends during OTB and throughout the live thoroughbred racing season. The parking lot (315 acres) is routinely packed, and many wagering Texans bring their families. The facility includes a skateboard park for inline skaters and skateboarders, and a children's playground with spacious grassy areas for safe outdoor play.

Online Innovations: Bringing OTB Into the Home

The latest development in sports wagering technology is occurring on the Internet. One of the leading companies offering horseracing fans the opportunity to wager online is TVG. Owned by Gemstar-TV Guide International, Inc., TVG was available to horseracing fans in California, Idaho, Indiana, Kentucky, Louisiana, Maryland, Massachusetts, New Mexico, North Dakota, Ohio, Wyoming, and Oregon. Once signed up and logged in using a secure PIN, the user has access to "all the information they would have at the track, including real-time odds and changes and scratches… [plus] complimentary handicapping data (power ratings, trainer/jockey stats, etc.)," according to the TVG network website. The platform offers up to eight live races per hour, interspersed with expert commentary, behind-the-scenes interviews, and features with jockeys and trainers.

To fully enjoy the home-based OTB experience through a service like TVG, a fan needs: (a) to reside in one of the eligible states listed above; (b) a fast enough computer to load pages quickly (DSL recommended, though 56K is functional); (c) a free RealOne Player installed; (d) a firewall configured to allow streaming video; (e) a working television with cable or digital satellite as a backup if the computer cannot handle the interactive load; and (f) a credit card, with the account holder being at least 21 years of age.

The cost of this service — including wagering and live streaming video of each race — is straightforward. TVG requires a minimum initial deposit of $50, but there is no account opening fee. Each wagering transaction costs twenty-five cents, and according to TVG's FAQ, "regardless of the amount of wagering, you never pay more than $19.95 per month (approximately 80 wagering transactions). Each month you wager $2,500 or more, your user fees for that month are refunded." Available bet types include trifectas, superfectas, quinellas, exactas, daily doubles, pick three, pick six, and more — just like a physical OTB facility, only from home. TVG estimates a 15-second confirmation time per transaction. Winnings over $600 must be reported to the IRS, and winnings can be quickly transferred to a personal checking account.

Conclusion

Off-track betting offers genuine entertainment value and a robust economic ecosystem, from trackside dining to real-time online wagering. However, the risks of gambling addiction — particularly among young people — make responsible engagement and accessible support resources essential. Understanding both the appeal and the dangers of OTB is the first step toward informed, measured participation in thoroughbred wagering culture.