Betfair is closing the New Jersey Race betting exchange. Betfair told the customers that the site will be officially closed from October 1. The decision came after years of financial futility.
Kip Levin, COO of Fan Duel Group has overseen it for years. He said that the New Jersey Exchange never had the critical mass to survive.
In 2015, a New Jersey Wagering license was obtained by Betfair. The company launched the exchanged product 4NBets site next year. However, it never really got off. The US bettors were never convinced, it seems. In 2018, the exchange handled only $12.8mn wagers. After that, the figures were not available.
As per Levin, the challenge with the New Jersey exchange was,
“a customer base used to exotic wagers and a reluctance by major US racing associations to embrace the different business models.”
California approved exchange betting back in 2012 after furious lobbying by Betfair.
Betfair is part of the Flutter Entertainment gambling brand. The parent company absorbed the Stars Group recently. The company has been reevaluating the operations. The struggling and regulatory sketchy operations are being looked into.
Betfair also withdrew from the Russian Black market in the month of May. It followed the same suit and withdrew from the Japanese horse racing market the very next month. Last year, Betfair also withdrew from India.
New Jersey is gearing up for the first locally licensed sports betting exchange. A Philadelphia based start-up, Sporttrade announced the exchange with the partnership of operator Twin River Worldwide Holdings. The approval of the local regulators is still pending.