 In the U.S., most forms of online gambling are illegal. But there's one form of online gambling that's actually completely sanctioned. Horse racing has kind of been associated with older, aristocratic-type people. It's not that hip an industry. But there's a start-up in New York City that's hoping to apply the Zynga model to make horse racing cool. Derby Jackpot is a social game that makes it easy to bet, watch, and win real money on live horse racing, the only legal way to gamble online in the United States. A lot of people are surprised that you can gamble with real money on the internet. They think of poker and they think of the other things that have gone up and down and made a lot of news in the past five years. But horse racing has been the only legal way to gamble online in the U.S. for at least 10 years. It's not a magic formula because the ability to do this has existed for a long time. Horse racing has been recognized in many states as a legal form of gambling. And actually back in the 70s and the 80s, they started to accept telephone wagering. And then as the internet came along, the permissible telephone wagering expanded into internet wagering. Paramutual horse wagering means you're not betting against the house. All the players are actually betting against each other. So all the funds go into one pool and the players who are betting set the odds. It's not a company built around a loophole because it's never been a loophole. There's the Interstate Horse Racing Act, which is a federal statute, which recognizes the position that horse racing has had in most states in the United States as a legal form of wagering. And it allows it to happen across state lines. And that's been going on since the 1970s. We're like a gas station that sells lottery tickets. We're not the house. We get a small percentage of every bet placed through our site. And we want all of our players to win because it's a more fun experience. Derby Jackpot first went into beta a couple of months ago. So right now it's in a closed beta. Tonight's kind of a preview, letting more people in to play and test it out before it goes public at the beginning of next year. So anyone will be able to join and play. The industry has been looking for a way to attract younger bettors. But the problem has always been, it's been a bunch of old guys like me trying to sit around and figure out a way we can interest younger people and utilize the internet in doing so. And so when they first contacted me as someone who is knowledgeable from a legal perspective as well as knowledgeable from an industry perspective, my reaction was, this is the panacea. This is what the industry has been looking for. And you guys are doing it the right way. There's some people who are betting and they have their system and they're handicapping and they're trying to get an edge to win. Or they think they have an edge because they have a system to win. But then you have the other people who go to the track for one day a year, they go to the Derby or the Preakness or the Belmont Stakes and they go and they pick their favorite name or they pick a horse that looks really good. And they just do it for the fun of the game. And that's our player. The real test is probably going to be next month because there's a big industry conference in December that they're going to be demonstrating that. And everybody from the industry will be there. And that's when you'll get a true reaction. But everybody that we presented to, to this point in time in the industry, they're very excited about it. They once again recognize it could be the saviour to the industry. They probably don't understand how it works because they're all guys like me, but they recognize it as being the prospective saviour for the industry.
 In the U.S., most forms of online gambling are illegal.
 But there's one form of online gambling that's actually completely sanctioned.
 Horse racing has kind of been associated with older, aristocratic-type people.
 It's not that hip an industry.
 But there's a start-up in New York City that's hoping to apply the Zynga model to make horse racing cool.
 Derby Jackpot is a social game that makes it easy to bet, watch, and win real money on live horse racing,
 the only legal way to gamble online in the United States.
 A lot of people are surprised that you can gamble with real money on the internet.
 They think of poker and they think of the other things that have gone up and down
 and made a lot of news in the past five years.
 But horse racing has been the only legal way to gamble online in the U.S. for at least 10 years.
 It's not a magic formula because the ability to do this has existed for a long time.
 Horse racing has been recognized in many states as a legal form of gambling.
 And actually back in the 70s and the 80s, they started to accept telephone wagering.
 And then as the internet came along, the permissible telephone wagering expanded into internet wagering.
 Paramutual horse wagering means you're not betting against the house.
 All the players are actually betting against each other.
 So all the funds go into one pool and the players who are betting set the odds.
 It's not a company built around a loophole because it's never been a loophole.
 There's the Interstate Horse Racing Act, which is a federal statute,
 which recognizes the position that horse racing has had in most states in the United States as a legal form of wagering.
 And it allows it to happen across state lines.
 And that's been going on since the 1970s.
 We're like a gas station that sells lottery tickets.
 We're not the house.
 We get a small percentage of every bet placed through our site.
 And we want all of our players to win because it's a more fun experience.
 Derby Jackpot first went into beta a couple of months ago.
 So right now it's in a closed beta.
 Tonight's kind of a preview, letting more people in to play and test it out before it goes public at the beginning of next year.
 So anyone will be able to join and play.
 The industry has been looking for a way to attract younger bettors.
 But the problem has always been, it's been a bunch of old guys like me trying to sit around and figure out a way we can interest younger people and utilize the internet in doing so.
 And so when they first contacted me as someone who is knowledgeable from a legal perspective as well as knowledgeable from an industry perspective,
 my reaction was, this is the panacea.
 This is what the industry has been looking for.
 And you guys are doing it the right way.
 There's some people who are betting and they have their system and they're handicapping and they're trying to get an edge to win.
 Or they think they have an edge because they have a system to win.
 But then you have the other people who go to the track for one day a year, they go to the Derby or the Preakness or the Belmont Stakes and they go and they pick their favorite name or they pick a horse that looks really good.
 And they just do it for the fun of the game.
 And that's our player.
 The real test is probably going to be next month because there's a big industry conference in December that they're going to be demonstrating that.
 And everybody from the industry will be there.
 And that's when you'll get a true reaction.
 But everybody that we presented to, to this point in time in the industry, they're very excited about it.
 They once again recognize it could be the saviour to the industry.
 They probably don't understand how it works because they're all guys like me, but they recognize it as being the prospective saviour for the industry.