Originally Posted by
indio
If I understand it correctly, It's essentially just a satellite for a pre-existing international exchange, which would essentially mean all it has to do is attract enough new money and fees to cover the cost of maintenance and operating expenses, which can't be all that much.
This will attract some players to bet and trade win and place markets which they cannot do currently. Nobody with an ounce of sense is going to put any liquid into a small pari-mutual like Emerald where they bet against their own money, a 17% hold, and breakage. It doesn't happen. But if you can get some international trading on those 6 horse fields of 4k claimers where you can secure a fixed price, you might get some activity. The pick3, superfecta, and other exotic pools will stay as the viable pari-mutual option for most horseplayers. Keep in mind, they are looking at getting a toe-hold in the American market, they don't need a whole lot of success in New Jersey to justify their operating expenses.
Horse racing is practically dead in the US, as most of its operating tracks are subsidized by racino's and governments. California track owners got their congressman to get them a $60 million a year payoff if online poker gets passed in CA. As long as these dumps are being subsidized enough to run races, gamblers will always participate in any market if there's a chance to profit enough for their investment in time. That hasn't been available for lower-variance win and place betting for a long time, give them a chance with a more viable alternative, and see what happens. Maybe it gets action, and maybe it doesn't.