Advance-Deposit Wagering - ADW

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Casino Finance

    A slang term for an investment strategy that is considered extremely ...
  2. Gambler's Fallacy

    When an individual erroneously believes that the onset of a certain ...
  3. Lottery

    A game of chance, where winners are typically decided by a drawing. ...
  4. Gambling Loss

    A loss resulting from games of chance or wagers on events with ...
  5. Risk Capital

    Investment funds allocated to speculative activity. Risk capital ...
  6. Smart Beta

    Investment strategies that emphasize the use of alternative weighting ...
Related Articles
  1. Investing Basics

    Are You Investing Or Gambling?

    We look at ways in which gambling creeps into trading, and what may drive an individual to trade - or gamble - in the first place.
  2. Taxes

    Winning The Jackpot: Dream Or Financial Nightmare?

    Don't assume all prizes are free. Many come with enough costs to render them worthless.
  3. Fundamental Analysis

    The Evolution Of The Gaming Market

    The gaming market has a rich history in America, from lotteries in colonial settlements and card games in old west saloons to today's multibillion-dollar casino industry.
  4. Options & Futures

    Going All-In: Comparing Investing And Gambling

    People often compare stocks to gambling, but how close are they really?
  5. Trading Strategies

    How can retirees protect their wealth in a bear market?

    Look at some helpful hints about how to protect your retirement nest egg when the stock market is underperforming or the economy is in recession.
  6. Investing Basics

    When is it beneficial for underwriters to sell stock below the minimum rate?

    Learn when selling stock below the minimum rate can be beneficial. Find out how the 1987 market crash affected an offering of British Petroleum shares.
  7. Investing Basics

    How do REIT managers use capitalization rate to configure their portfolios?

    Learn how REIT managers use capitalization rates to help assess risk and identify properties as potential purchase and sale candidates.
  8. Fundamental Analysis

    What are the risks associated with investing in the railroads sector?

    Learn about risks relating to investing in the railroad sector. Explore how the price of fuel, cost of labor and access to capital affects railroad companies.
  9. Mutual Funds & ETFs

    What are the risks involved in keeping my money in a money market account?

    Setting aside funds in a money market account can be a safe investment strategy, but investors should be aware of the risks inherent to money market options.
  10. Trading Strategies

    5 Ways To Adapt To Tough Markets

    Tough markets undermine profitability and lower self-confidence. Fight back with five simple but powerful rules of engagement.

You May Also Like

Hot Definitions
  1. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  2. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  3. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  4. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  5. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  6. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
Trading Center