My Experience

I have accounts with Youbet, Xpressbet, and AmericaTAB (Brisbet). I bet almost exclusively with Youbet, though I occasionally make bets through Brisbet on tracks not carried by Youbet (FG, Pha). I have not used Xpressbet in years, and the only reason I opened an account was to bet the Preakness a few years ago when they were the exclusive online outlet.

Commentary

While the industry continues to push for a single provider, I fear that the resulting monopoly would screw the bettor. Despite still having multiple providers, a worrisome (for the bettor) decrease in competition will result from cooperation between Churchill Downs and Magna Entertainment. A probable scenario is the two of them working together to raise signal fees, which will in turn reduce rebates to bettors. Historically, competition between racetracks has keep signal prices low, which has allowed multiple providers to enter the market and compete for our wagering dollar. This competition has resulted in rebates for high volume bettors, rewards programs for the average bettor, reductions or eliminations in many fees (deposits, wagers, and live video), good customer service, and innovations in interactive wagering platforms.

The result of competition is that a smaller percentage of a dollar bet makes its way back to the track where the race has been run. But, hey, that is what the market place is supposed to do:  i.e., determining the price of each component of the total service (remember the price of coffee beans off the farm is a tiny fraction of the price of a cup of coffee). Low signal fees did not result from poor decisions made by racetracks in the dawn of the simulcast era, rather they are the equilibrium arising from many producers (racetracks) offering similar products (races). Churchill Downs and NYRA tracks charge more for their signals because their product is better (more appealing to bettors). Beulah Park and Charles Town have almost no market power – if they charge too much and they will be dropped from the menu. Tracks charge different prices to different consumers (other tracks, Las Vegas, non-track providers). Don’t be fooled, the signal prices are as high as the market will stand under current conditions. Increased signal pricing power will come only through a cartel between the tracks (think OPEC) or a central governing body for racing (while there are many reasons racing needs a commissioner, this is a strong reason to be against one).

Of all online providers, I believe that Youbet has the most to offer, but they could be in real trouble as a result of a CDSN/Magna cartel (though they remain upbeat about it).  

COMPARING ONLINE PROVIDERS

Cost to Wager    Advantage Youbet, AmericanTAB, Xpressbet

TVG - Flat rate of $19.95 a month or $0.25 per wager with a cap of $19.95. No wager fees if individual handle exceeds $2500 a month

Youbet - None

AmericaTAB - None

Xpressbet - None

Rewards Program    Advantage Youbet

TVG - 1 point per $1 wagered. 2500 points can be redeemed for $5 in wagering credit or  Skymall credit. This is a 0.2% rebate.

Youbet - Points are accumulated based upon the track with bets at lower tier earning more points (presumably because their signals are cheaper). Exotic wagers earn twice as many points as straight wagers (presumably because of the higher takeout rate). Cash rebates are given to those whose average handle is at least $12,500 a month. 20,000 points equals $50 cash back.

Aside: I do not bet enough to qualify for cash back but I did earn enough points to get a Sony 40-in BRAVIA S-Series Digital LCD HD Television (986,618 points). That point total  would earn $2,467 cash back which is somewhat more than the sticker price of $1,999.99 for the TV.

AmericaTAB – None. Occasional rebates for all members. (This weekend there is 10% cash back for bets at Tampa Bay Downs)

Xpressbet - VIP Members only. To be eligible you must have an average handle of $8,000 for three months. 1 point per dollar on WPS wagers and 2 points per dollar on exotics. Bonus points based on monthly handle. Points per cash back dollar unknown.

Aside: I called Customer Service and talked to the manager of the VIP program, but was not given any information about rebate rates or points per cash back dollar. Xpressbet does not make this information public so the only way for me to find out is to bet $24,000 over the next three months. Both people I was on the phone with (for twenty minutes) were very friendly despite being unwilling to help me.

Deposit Fees for an EBT    Advantage TVG, Youbet, AmericaTAB

TVG - None

Youbet - 0.89% processing fee with a minimum of $1 and a maximum of $5. Waived if average handle is at least $12,500 a month.

AmericaTAB - None

Xpressbet - None

Video    Advantage Xpressbet

TVG - $5.95 a month. Free video if monthly handle exceeds $200

Youbet - $10.95 or $17.95 a month depending on plan. Free video if wagering exceeds $350 a month or $2500 a year.

AmericaTAB – Video streaming will be available for those account holders who have wagered:

1. A minimum of $50 in the last 5 days you have accessed the video system or,
2. A minimum of $50 during the last 5 calendar days or,
3. A minimum of $100 wagered during the previous 30 calendar days or,
4. A minimum of $600 wagered during the previous 90 calendar days or,
5. A minimum of $5,000 wagered during the previous 360 calendar days. 

 Xpressbet - No charge

Available Tracks    Advantage AmericanTAB

TVG

Youbet  

AmericaTAB

Xpressbet

Other

Of the three accounts I have used I believe that Youbet has the best website and wagering platform. However, an advantage of Brisbet is that it requires no special software so I can make bets using any computer I come across (I have no laptop so on the road I use Brisbet). There other amenities specific to each service. Youbet allows users to cancel wagers. Brisnet past performances are free for the tracks you are betting through Brisbet.com. Brisbet bettors are also eligible for big discounts on Brisnet products.