DEFINITION of 'Advance-Deposit Wagering - ADW '
A form of gambling on the outcome of horse races in which the bettor must fund his account before being allowed to place bets. ADW is often conducted online or by phone. In contrast to ADW, credit shops allow wagers without advance funding; accounts are settled at month-end. Racetrack owners, horse trainers and state governments sometimes receive a cut of ADW revenues.
BREAKING DOWN 'Advance-Deposit Wagering - ADW '
In the United States, the legality of ADW is determined by individual states. For example, Illinois has allowed its adult residents to participate in ADW since 1999 under the Illinois Horse Racing Act of 1975; Illinois receives a cut of ADW revenues. The companies TwinSpires.com, Xpressbet.com, TVG and KennelandSelect.com are some of the major players offering ADW betting exchanges.