What is Off-Track Betting?
The concept of OTB betting means placing bets on horse races even when you do not need to be at the racetrack. People can make bets online in online gambling through mobile applications, traditional OTB betting kiosks, and at home.
It works like this: You select a horse, make a wager on that horse, then wait for the result, all from the comfort of home without going to the racetrack.
How It’s Different:
Traditionally, you would have to go to the racetrack. OTB allows you to bet anywhere that is licensed.
Real Example:
You are in Dublin, and there is a huge horse racing meet taking place in Ascot, United Kingdom. You want to bet on one of the horses participating in the race. All you need to do is place a bet of €50 on your favorite horse via your OTB app on your mobile phone and watch the race live on your phone.
Key Feature:
- You can get access to world races.
- No limits to betting on local races whatsoever.
- You can bet on UK, US, Australia and Japan races at the same time (different tracks).
Types of Bets:
- Win: Your horse finishes first, i.e., takes first place.
- Exacta: Pick the first 2 finishers in that order (high odds, large payout). Example: Horse W finishes 1st and Horse X finishes 2nd.
- Trifecta: Pick top 3 in exact order (rare winners, massive payouts).
How Off-Track Betting Works
OTB is, in fact, a very simple process. You just need to browse horse races, select a horse to wager on, and then watch the outcome.
The Player Journey:
- Select Race: Browse through available horse races (eg, Ascot, Kentucky Derby)
- Place Wager: Determine what kind of wager you wish to make. This can be “Win” (1st place), “Place” (top 2), “Exacta” or “Trifecta” (specific order).
- Place Bet: Input value of wager (€10, €100, etc.)
- Watch live: Stream the horse race live on your device
- Settle: Immediate win or loss based on odds
Bet Types:
- Win: €10 bet with 5.0 odds, win gives €50 reward
- Exacta: Bet on specific top 2 finish (harder to win, but pays more)
- Trifecta: Bet on specific top 3 finish (few winners, very high rewards)
How Operators Make Money:
Operators retain a portion of the total wagers placed (15%-25%), commonly referred to as the “takeout rate”. On wagers totalling €10,000, an OTB operator would keep €2,000-€2,500, while the remaining amount would be paid to gamblers who had winning tickets.
To put OTB’s scale in context, wagering on U.S. Thoroughbred races alone totalled $11.27 billion in 2024 — even after a 3.35% year-on-year decline, according to BloodHorse.
Why It’s Different:
Unlike online slots, where the revenue for the operator comes from players who lost in gambling, OTB revenues are made from commissions on all bets, regardless of their outcome.
Types of Off-Track Betting Platforms
There are different forms of OTB betting. However, whether it is digital or physical, they all have one thing in common, they allow remote horse gambling.
Online OTB Platforms:
It is one of the most recent methods of online betting, involving both desktop and mobile devices. The user installs the software on their device, verifies their credentials, makes a deposit to their account, and starts making bets. For example, DraftKings, FanDuel (United States) and Betfair (United Kingdom).
Betting Shops:
Physical buildings (non-track locations) where you can go and place a bet in person. Mostly present in the UK and Ireland regions. They are decreasing in number as more and more people use apps to place bets. As the name suggests, these are just your physical betting shops located on the high street.
Mobile OTB Apps:
Mobile-only platforms that allow you to place bets from anywhere, no matter your location. In-play odds, in-game streaming, cash out feature. That’s where the marketplace is changing.
Satellite OTB Locations:
Facilities adjacent to the tracks with screens, betting windows, and seating. Partnered with the main track, providing the hybrid experience of the atmosphere at the track, but with the convenience of a fully remote experience.
Integrated Sportsbooks:
Major platforms (Paddy Power and Betfair) now offer bundled horse racing off-track betting along with football, tennis and NBA. Users will be able to place wagers on horse racing and sports, all through one application.
The Trend: App is taking the market by storm. Sports betting shops are declining. There is a consolidation trend for the operators in terms of platforms where they have all products. Operators are moving towards consolidation into single platforms that offer all product types.
Regulatory Landscape: OTB Licensing
Here’s where OTB gets complicated. Licensing isn’t one-size-fits-all—it varies wildly by region.
UK and Ireland:
Strict regulations exist for OTB horse racing organizations, as the organizations are regulated by authorities (Gambling Commission in the United Kingdom and Irish Revenue in Ireland). Separate licenses are required for OTBs as compared to casinos and sports betting organizations.
US Markets:
Every state has its own laws and procedures regarding OTB. A few states, like New York and California, allow off-track betting, while other states outright prohibit it. The federal law (Interstate Horse Racing Act) governs the placing of cross-state bets, which gives multi-state operators compliance headaches.
EU Markets:
Malta has a gaming license for OTB. France has a PMU (monopoly) for this. The handling of OTB (horse races) differs in Germany from general betting. There is no standardized method of issuing OTB licenses in these three countries.
The Real Challenge: Licensing for OTB is frequently separate from sports betting and casino gaming licenses. So if you have an online gambling business license but would like to conduct OTB, you will need to obtain additional regulatory approvals. This would mean that sports and OTB will have to comply with two separate regulatory schemes.
Bottom Line: If operators are planning to grow their business in OTB then they should be prepared for the expenses related to getting licenses to operate in OTB within that particular territory. It is not possible to run OTB on any existing license.
Why Players Choose Off-Track Betting
OTB brings in players who are very knowledgeable about horse racing, so it is not a casual slot player.
- Accessibility: No travelling to the race track. You can bet from home, work, or anywhere a person is licensed.
- Global racing access: Races from the UK, US, Australia on the same day? Don’t worry. You have access to thousands of races around the world.
- Perceived skill: Players evaluate the form, odds and conditions of the racetrack. This feels less like gambling, more like informed betting. Thus, attracting experienced bettors.
- Convenience: Mobile betting, live streaming, and instant settlement provide a frictionless experience for bettors.
- Loyal player base: The racing community is strong. Bettors talk about form and share tips while betting very serious amounts of money. OTB betting tends to retain more customers than standard slot players.
The difference: Off-track betting horseplayers are a smaller segment of the gaming public than slot players. However, they are of a higher quality and have much longer-term value than casual players.
The Affiliate Perspective: OTB Marketing Strategy
OTB Marketing is unique, and so should be the approach.
- Target Audience: This is aimed at horse-racing enthusiasts and not the “weekend warriors”, those who just pick up horse betting as leisure.
- Messaging: Do not use “Win big.” Go with an educational approach such as “Form analysis,” “Betting strategies,” “Track conditions.” Education not marketing.
- Commission Structure: OTB has a lower CPA than sports betting (€15-€30), but higher revenue share upside. OTB customers usually bet more money and spend more time gambling than sports gamblers.
- Traffic Source: SEO content for racing tips, betting methods, form analysis of races. You should focus on main horse racing forums and communities (no display ads targeting casual bettors).
The Reality: OTB generates different traffic than traditional sources and has less overall but higher-quality traffic potential. OTB’s focus is more on building partnerships with horse racing content providers than paying instant commission for the referral of new customers.
Conclusion
The blend of traditional horse race with technology has brought about off-track betting. This is a distinct product which has certain licensing requirements and which has attracted its own set of experienced players.
From a marketing point of view, the marketing strategy for OTB affiliates will be different depending on the mechanics of OTB where form and experience play a much more important role than promotion.
Help Section
What is off-track betting, and how does it differ from traditional horse racing wagering?
Bet on the horse races from remote areas through the help of mobile applications or physically via betting stores through OTB. The conventional method of betting is when you go for the horse race yourself at the place where the horse race takes place.
Is off-track betting legal in the UK and EU jurisdictions?
Even though the Gambling Commission and Irish Revenue regulate off-track betting to be legitimate only with mandatory licenses, the approach is different in the EU where Malta regulates OTB with gaming licenses and France runs a government monopoly (PMU). Please always check jurisdictional requirements first
How do iGaming operators obtain licensing for off-track betting products?
OTB licensing is worlds apart from casino and sports betting licensing. For OTB, license requirements are specific to the jurisdiction in question. Licensing itself is different too; while the USA mandates jurisdictional licensing on a state-by-state basis, Malta combines it with gaming licensing. Approval takes 3-6 months.
What commission structure do affiliates receive for promoting OTB?
CPA for off-track betting affiliates varies between €15-€30 per player (less compared to sports betting). RevShare can be as high as 20-30%, based on the quality of the players. Dedicated racing bettors have greater LTV, thus, RevShare becomes a much more lucrative option than CPA alone.
What player demographics engage most with off-track betting platforms?
Players of off-track betting are people who know how to bet and who have been doing so since they were aged between 35 and 65 years old, form specialists, and racing lovers. They are more involved than players of slot machines.
