In a Thursday vote by the Colorado Limited Gaming Control Commission, three commissioners decided to take no action on currently proposed rules for exchange wagering. Exchanges are a type of betting where two players will set up their odds and be willing to bet against each other – the exchange takes a cut and has no say in what the odds are.
Colorado Takes It Easy with Betting Exchange Proposal
Only one commissioner voted in favor of moving forward with the matter, leaving the final tally at 3-1 – not enough to lead to any further decision. Although the motion has not been denied completely, commissioners do have their qualms. For one, they fear that betting exchanges could create a loophole allowing the exchanges to avoid paying taxes.
Despite shooting down the proposal, however, the commissioners have said that they would now let the Colorado Division of Gaming more time to revise the proposal. One of the commissioners to stall the action, Richard Nathan, said that exchanges would need a lot more scrutiny.
Exchange is an entirely different beast in the sports betting landscape and was popularized by Betfair, arguably the most successful pioneering platform in this vertical. Exchanges are also more popular with the so-called “sharps,” the type of sports bettors who wish to treat sports betting as an investment as opposed to the “squares,” the mass gamblers who just want to add a bit of excitement to their viewing party.
Exchanges Still New in the United States
The exchanges in the meantime will cut 2% or 2.5% out of the placed bets, and then the operator would calculate 10% of these amounts to pay as tax. The idea of an exchange is not entirely outlandish in the United States entirely either – both Nevada and New Jersey have tried it, although the Silver State had to shutter the local company offering exchange wagering due to complications with the Securities Exchange Commission.
Commissioner Justin Davis said that the overall cautious approach was important and should guide the body’s further attempts to address the matter. There is also the possibility that an exchange would not prove that popular in Colorado as well. The chances are that an exchange will take place in the end.