The technical definition of advance deposit wagering is a form of betting in which users must fund their accounts before placing wagers. Advance deposit wagering stands in contrast to credit betting, where betting shops extend lines of credit to their customers and settle the balance every month.

However, in everyday usage, advance deposit wagering usually refers to pari-mutuel horse racing betting. More specifically, it is used in the context of online horse racing betting. For example, the phrase advance deposit wagering providers (ADWs) always refers to horse racing betting sites such as AmWager and TwinSpires.

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Advance-Deposit Wagering Sites

Dozens of Advance Deposit Wagering sites operate in the United States, but a handful of ADW’s dominate the horse racing industry regarding betting handle, name recognition, and capability.

TwinSpires Horse Racing Betting

TwinSpires is the online and mobile betting platform of Churchill Downs racetrack, home of the Kentucky Derby.

As the parent company of the world’s most famous horse race, Churchill Downs Inc. maintains a stellar reputation for the security and legitimacy of its flagship ADW horse racing brand, TwinSpires. TwinSpires Racebook offers wagering and live video from all major racecourses in the United States and abroad, including tracks in the UK, Sweden, Japan, New Zealand, Australia, and South Africa.

TwinSpires also ranks well on the promotional front, with a sizable welcome bonus for new users plus frequent promotions for current customers. Its promotions change regularly, but TwinSpires tends to offer refund guarantees (money back if your horse places second), profit boosts, leaderboard competitions, and giveaways to high-profile events such as the Kentucky Derby.

AmWager Racebook

AmWager lacks the name recognition some of its competitors enjoy, but bettors should not underestimate this racebook. It holds licenses from all the country’s highest-profile horse racing regulators, covers more than 500 tracks, and ranks well in the promotional department.

More importantly, what AmWager lacks in branding, it more than makes up for in capability: AmWager boasts more horse racing betting features than other ADWs, including industry-leading update speeds on odds and pool changes, detailed race results, and advanced handicapping tools.

The AmWager rewards program also deserves mention. It’s a simple program, but it is generous and easy to understand. While other rewards programs operate on complicated points systems, AmWager’s simply returns 2% to 5% cashback on customers’ wagers, win or lose.

How Advance Deposit Wagering Works

Advance deposit wagering is a straightforward way to bet on horse races online.

It begins with choosing an ADW. Options vary based on bettors’ locations, but most big ADWs accept customers from more than three dozen states. The best advance deposit wagering companies hold licenses in multiple states and offer wagering on races held nationwide.

The second step is to make a deposit. As the technical definition of the phrase “advance deposit wagering” indicates, bettors must fund their accounts before they can place real-money wagers. The most common ADW funding methods include credit and debit cards, PayPal, and PayNearMe.

And finally, the last step is to pick a track, select a horse, and place a wager. Licensed ADWs in the US provide the same wagers online that fans at the track can place in person.

Advance Deposit Wagering Pros and Cons

Advance deposit wagering is overwhelmingly advantageous to bettors. It provides convenience, better money management, and more. Its downsides are limited, especially from the customer’s point of view.

Pros

• Increased Convenience: Legal ADWs allow customers to place wagers from anywhere in most US states. Customers’ wagers contribute directly to the host track, so they receive full payouts. It’s like betting in person, except bettors don’t have to visit the track to participate.
• Improved Money Management: Online pari-mutuel wagering makes it easier to track spending because bettors must fund their accounts before they wager, and they can view their accounts balances at any time. In addition, ADWs allow users to view their past transactions to see exactly how much they are spending and wagering.
• Increased Revenue for Tracks: State laws require ADWs to reach agreements with host tracks before offering wagers on their races. As a result, a portion of all wagering activity goes to the tracks and local horsemen’s associations. In addition, tracks earn the business of bettors who would otherwise find it too inconvenient to place wagers in person.

Cons

• No Credit Betting: Every state prohibits ADWs from extending credit to bettors. That might be a good thing for bettors who have trouble keeping their spending under control, but it’s a drawback for bettors who could responsibly use credit to bet on horse races.
• Reduced Track Visitation: The convenience of advance deposit wagering likely persuades some bettors to stay home and bet online instead of visiting the track. Reduced visitation results in lowered concession sales and a sense of reduced “energy” at the track.

States That Allow Advance Deposit Wagering

Advance deposit wagering is available in 39 states.

Some states have formally legalized online horse racing betting, while others merely tolerate it due to a lack of laws addressing advance deposit wagering. As a result, each horse racing betting site offers its services to a unique list of states based on its view of local laws. However, fans in the following states have at least one legal horse racing betting site available where they live.

In many states with legal online horse racing betting, ADWs generate massive amounts of betting handle. Nationwide, annual horse racing betting handle routinely tops $10 billion, even when COVID-19 resulted in nearly every racetrack in the country barring spectators.

ADW Horse Racing Deposits & Withdrawals

Advance deposit wagering operators provide multiple deposit and withdrawal methods for customers to fund their accounts and get paid when they win.

Some of the most common horse racing deposit options include:

• Credit and Debit Cards: Most ADWs accept Visa and Mastercard, and some accept American Express and Discover. In most cases, bettors cannot withdraw back to their debit or credit cards and must choose a different withdrawal method.
• PayPal: PayPal is a convenient method because it is usually free, instant, and works well for withdrawing.
• On-Track Funding: Most ADWs have arrangements with several tracks that allow bettors to visit the track in person to deposit and withdraw cash.
• Personal Checks and Money Orders: Bettors can mail personal checks and money orders to their ADW, but processing times are slow.
• PayNearMe: PayNearMe is a cash deposit method in which bettors select an amount to wager, save or print a pay slip, and take it to a nearby convenience store or pharmacy to pay in cash. ADWs typically process PayNearMe deposits within minutes.
• Wire Transfer: Wire transfers are ideal for large deposits. Banks usually charge a fee for wire transfers, but many ADWs refund fees for wire transfers over certain amounts, usually $250 or $300.

Advance Deposit Wagering FAQ