Andrew Black was the man behind the pioneering Betfair Exchange when it launched in 2000 and has long been considered a sharp mind in the sector.
Horse racing relies heavily on gambling-related revenues, and many people believe the sport is under threat as the UK government introduces more restrictions on betting. Wagering handle is dipping, and bookmakers are feeling the pinch.
Black outlined in the Racing Post that the horse racing betting sector hasn’t evolved with the times, with little changing in the past 25 years despite the explosion of online bettors.
the customer gets a higher return the better the horse finishes in the race
One of his big ideas is that operators should no longer accept classic each-way bets on races. He believes they should replace them with a more exciting performance wager in which the customer gets a higher return the better the horse finishes in the race. This would be an entertaining way to attract new customers and also provide something interesting for the more experienced bettor.
For example, a horse finishing second will generate a higher payout than one finishing third. With traditional each-way betting, a horse finishing in second or third place would still yield the same payout for a successful place bettor.
Black suggests pairing the performance bets with a leaderboard that allows people on a platform to battle it out for prizes, depending on their results over the given day or race meeting.
