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ONLINE HORSE BETTING STARTS JAN. 22 IN NEW YORK

Communications infrastructure now in place, all set to run

One of the great hypocrisies of US federal legislation - the carve-outs for horse-racing in the Unlawful Internet Gambling Enforcement Act - will again be under the spotlight next week as the New York racing industry gets set to reap the rewards of online gambling.

From January 22 onward, New York enforcement officials - some of the most aggressive anti-online sportsbetting officers around - will be standing idly by as probably thousands of their fellow New Yorkers reach for their cell phones or other handhelds to make horse racing bets, whilst other forms of online sport betting are harassed.

New York plans to allow people to place bets on horse racing via the Internet or other electronic platforms, including cell phones, thanks to a new regulation adopted by the New York State Racing and Wagering Board.

Some peripheral companies stand to benefit from the new regulations, too; a company called Sona Mobile has developed racetrack software that will make it easier for people to make bets from their mobile handsets.

Shawn Krelloff, chief executive of Sona, believes the regulations, coupled with his company's software, could breathe new life into the New York horse-racing industry, appealing especially to younger gamblers.

"Generally, horse racing appeals to an older, male demographic," he said. "They're the guys who go to the track or hang out in OTB (off-track betting) parlors. Placing wagers from a cell phone appeals to a younger generation. And that could incrementally grow revenue for the industry."

ZDNet news reports that Sona has already struck a deal with the New York Racing Association, the owner and operator of the three largest racetracks in New York. Initially, the deal calls for Sona to help build NYRA's Web site for online betting. The company also hopes to sell NYRA its mobile software to enable wagers from cell phones.

Sona has developed secure software that racetracks use to allow people to make bets from their cell phones. Users download a thin-client application on their handsets from the track's mobile Web site. Operating systems supported include Research In Motion's BlackBerry and Microsoft's Windows Mobile.

Once the client is on the phone, users click a button to launch the application that connects the cell phone over their carrier's cellular data network directly to the racetrack's Web site. Once connected, they can sign up for real-time alerts or view video clips of certain races. They can also make bets over the air using credit cards and other forms of secure payment.

While the application will likely be free to download, racetracks may charge extra fees for the live alerts or videos, Krelloff said. And consumers will also have to pay data fees or airtime fees associated with their service plan from their mobile operator.