Advance-Deposit Wagering (ADW)

Definition of Advance-Deposit Wagering (ADW)

Advanced-deposit wagering is a form of gambling in which the bettor must fund their 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. 

Understanding 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.

ADW 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,,, and

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 ADW

In 1999, seven states expressly allowed advance deposit wagering: Connecticut, Illinois, Maryland, New York, Ohio, Oklahoma, and Pennsylvania. By 2015, 21 more states approved advance-deposit wagering, 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%.

Article Sources
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  1. Gaming Law Review and Economics. "Gambling Modes and State Gambling Laws: Changes from 1999 to 2011 and Beyond." Accessed March 24, 2021.

  2. State of New York Racing and Wagering Board. "Report of the Impact of Advance Deposit Wagering on Horse Racing and Pari-Mutuel Handle in New York City," Pages 3-4. Accessed March 24, 2021.

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