DEFINITION of 'Advance-Deposit Wagering - ADW '

Advanced-deposit wagering is a form of gambling in which the bettor must fund his account before being allowed to place bets. Advanced-deposit wagering is usually used to bet on the outcome of horse or greyhound dog races, though it can also apply to casinos. 

BREAKING DOWN 'Advance-Deposit Wagering - ADW '

Advanced-deposit wagering is often conducted online or by phone. In contrast to advanced-deposit wagering, where accounts must be funded in advance, credit shops allow wagers without advance funding; accounts are settled at the end of the month.

Advanced-Deposit Wagering Explained

To participate in advance-deposit wagering, you need to ensure you have a funded account prior to placing a wager. Once the funds have been deposited, you can bet on horses, greyhounds and even on pari-mutuel pools (a betting system in which all bets of a particular type are placed together in a pool; payoff odds are calculated by sharing the pool among all winning bets). Winnings are usually deposited back into the account.

There are some major companies that offer ADW betting exchanges. These include TVG Network, TwinSpires.com, Xpressbet.com and KennelandSelect.com.

Betting without advance funding is done in credit shops that allow this form of gambling. Accounts using this type of action are usually settled at the end of the month.

Legality of Advance-Deposit Wagering

In 1999, seven states expressly allowed advance deposit wagering: Connecticut, Illinois, Maryland, New York, Ohio, Oklahoma and Pennsylvania. By 2011, 18 more states approved advance-deposit wagering, with at least three additional since then, including Louisiana, Washington, Pennsylvania, Kentucky and Nevada. Several major advance-deposit waging websites accept wagers from people located in up to 13 additional states, presumably based on the premise that those states do not affirmatively prohibit such activity.

Racetrack owners, horse trainers and state governments sometimes receive a share of ADW revenues. This happens in New York and Nevada and provides a large source of income for those who benefit from it. The state of Illinois made advance-deposit wagering legal in 1999 as part of the Illinois Horse Racing Act of 1975, and it receives part of the revenue.

A 2012 report by the State of New York Racing and Wagering Board found that New York residents placed more than $165.5 million in bets with out-of-state advance-deposit wagering providers in 2010 and more than $416.8 million with in-state wagering providers. The report also noted that in-state racetracks charged fees to advance-deposit wagering entities, which tended to be higher for out-of-state-providers, sometimes as high as 8.5%.

RELATED TERMS
  1. Pari-Mutuel Revenues

    Pari-mutuel revenues is income a gaming company earns from customers' ...
  2. Gambling Income

    Gambling income is income as a result of games of chance or wagers ...
  3. Forex Spread Betting

    Forex spread betting allows you to bet on currency movements ...
  4. Bank Deposits

    Bank deposits are money placed into a deposit accounts at a banking ...
  5. Rule 147

    Rule 147 is a rule used by small companies to raise small amounts ...
  6. Sleeping Beauty

    A sleeping beauty is a company that is considered prime for a takeover ...
Related Articles
  1. Insights

    A Quick And Dirty Look At Sports Gambling

    Americans love to gamble on sports, but most of the money wagered doesn't come with a receipt - or the backing of the U.S. government.
  2. Tech

    Kentucky Derby Now Allows Bitcoin Bets

    Cryptocurrency wagers were up significantly this year.
  3. Investing

    Will Buffet Win the Bet? Hedge Funds Lag S&P For Eighth Year

    Warren Buffett's million-dollar wager with Protégé Partners seems to be paying off, as hedge fund figures show the industry lagging behind the S&P again.
  4. Trading

    Traders 'Shocked' by VIX Bet That Could Pay $265M

    Investors are shocked that a trader made the largest bullish wager in living memory on the VIX.
  5. Investing

    Traders Poised to Profit Off J.C. Penney, Macy's

    Short sellers are poised for potential profits when retailers report earnings.
  6. Investing

    Going All-In: Comparing Investing And Gambling

    People often compare stocks to gambling, but how close are they really?
  7. Investing

    5 Sports Betting Stocks May Pay Off Big

    The odds are now in favor of several gaming stocks after the Supreme Court ruling.
  8. Investing

    Square Seen Rising 10% Short Term as Profits Soar

    Shares of Square Inc. (SQ) have more than doubled in 2018, and may be about to rise even higher.
  9. Investing

    Spread Betting: OK in the U.K., Illegal in the U.S.

    The U.K. practice of spread betting is illegal in the U.S. because it is considered a form of online gambling, banned in 2006. Is there a U.S. equivalent?
  10. Investing

    Walmart Stock Begins Comeback After 26% Plunge

    Walmart options traders are becoming increasingly bullish on the stock.
RELATED FAQS
  1. What taxes are due on money won gambling in Las Vegas?

    Travel to Vegas and try to win big at the casino. But before you do, make sure you understand the tax laws that govern gambling ... Read Answer >>
Trading Center