How Advance Deposit Wagering Works

The process of betting through ADW from the bettor's side is relatively simple. They first need to establish an account with the gambling house taking the bet. They usually do this through off-track betting websites like or After creating their account, the bettor will deposit funds to that account. They can do this through PayPal, a credit card, or similar methods.

Each site has its own payment method rules and regulations based on business arrangements between the payment processor and the gambling website or the jurisdictional regulations under which the gambling site operates.

Once the bettor deposited funds into their account, they select the wager they want to make. The gambling website will withdraw the funds from the account, pending the outcome of the wager. If the wager was successful, the winnings are usually credited back to your account. If the wager was unsuccessful, then the balance of the account remains the same.

Advance Deposit Wager Example

Imagine you would like to gamble on a horse race at Belmont Park in New York state, but you are not at the track. You're on vacation with your family in Florida. You log in to your account at your favorite betting website and use a prepaid credit card you purchased to deposit $100 to your account.

You'd like to bet on a horse called High Opinion, which is paying 4 to 1 to win Race 3 that day. You bet the entire $100 using your account by selecting that bet on your smartphone, which has an app connected to the website. You watch the race on your phone and see that your horse won! The gambling site deposits $400 in winnings back to your account, now showing a balance of $400.

That was so much fun! You decide to bet on two more horses later in the day. You bet $100 each on Flip My ID and Moon over Miami to win their races. Now your account shows a $200 balance. Unfortunately, both horses fail to win. Your account remains at $200. You withdraw the funds and credit them back to your PayPal account. Not a total loss, but it's not $400.

Significance of Advance Deposit Wagering

ADW is a growing line of betting. Many jurisdictions have put in place regulations to permit off-track betting. However, some jurisdictions only permit this type of betting when bettors place the funds in advance. ADW is done both to protect bettors and the gambling sites. Bettors are protected from betting more money than they can afford and discourages them from borrowing money to gamble. Gambling sites are protected because the bettor already deposited all funds wagered in advance.

This type of betting is growing in popularity because people can do it with smartphones and similar mobile devices. All types of entertainment, including gambling, are increasingly being done on mobile devices. The increasing use of these devices, combined with ADW legal gambling, has led it to its increase in popularity.