Horse Racing’s Unique Payout Structure (Pari-Mutuel Betting)

Want to get started gambling on horse racing, but aren’t sure how the odds, payouts, or even fundamental betting rules work? When you are gearing up to put a wager on a horse race, there are a few things you’ll want to understand to avoid confusion. We have got you covered, not to worry.
Horse racing betting doesn’t rest upon fixed odds that bookmakers make as most traditional sports do. It is important to know how to examine horse racing odds before you get started. When you understand the basics of horse racing betting, read on to figure out how horse racing odds and payouts are generated.
Pari-mutuel Odds and What They Mean For The Payouts
This is the significant way horse racing differs in the heart from gambling in a sportsbook. There are quite a few differences between reading and calculating chances for conventional sports, and reading and calculating odds for horse racing. In a casino or internet sportsbook if you bet on a football team, for example, the chances are fixed, meaning they’re locked in when you wager and you’re betting against the house.
In horse racing, the pari-mutuel system signifies handicappers are gambling against each other. This happens both at the track and at online sportsbooks.
The odds on a horse are dictated by how much money is wagered on the horse . The house takes a percentage off the top (usually 10-30% based on the sportsbook or monitor you are gambling with), but each of the remaining money is pooled together and odds are calculated if the horses break from the gate.
The size of the payout is determined at the conclusion of each race, dependent on the way the horses placed.
By way of instance, say 90 percent of the money on a particular race were bet on the same horse and just 10% percent of their cash was distributed among the remainder of the area. If the favorite won, 90% of these tickets could be winners and also the cash put into the betting pool by that 10 percent of winners would pay out the large set of winners. This usually means that only pennies could be distributed to the winners.
On the reverse side, if the 90 percent horse lost, there would be a whole lot of cash to pay out and only a small proportion of winning tickets to accumulate this massive amount.
Odds are a reflection of how much money is being bet on every individual horse. A large favorite (who is getting a ton of betting volume) can return as little as five or ten cents for each two dollars bet, therefore a 2 winning bet could hypothetically return as small as $2.10.
That having been said, horses that are 100/1 win occasionally, meaning that a $2 win bet can cover excess of 200.
Calculating Payouts on Exotic Bets
The chances on exotic stakes, exactas, trifectas, Pick 3’s, and Select 5’s are calculated exactly the same way as pari-mutuel chances. There are separate pools for each bet, so in the event that you wager an exacta, your money is being bet against everyone else playing an exacta. If you gamble a Pick 3, then strictly Pick 3 cash is in the pool.
What makes exotic stakes both more difficult to acquire and more rewarding is the number of possible winning combinations. Whether there are eight horses in a race which means there are only eight possible outcomes, one of the eight horses must win. In a Select 3 if there are eight horses in race one, eight horses in race two, and eight horses in race three, which creates 512 possible combinations (8 x 8 x 8 = 512 different potential outcomes).
Evidently, choosing one out of eight to win is easier than one from 512.
What’s ML in Horse Racing? Hint: Not the Moneyline!
We only discussed the importance of the betting odds, which change as individuals wager. Very low odds mean a strong likelihood of winning but with a minimal payout. Higher odds are more profitable but not as likely.
The morning (ML) is a professional’s guess at what the last odds of a race is. It’s not always precisely accurate, but it is a critical tool for estimating every horse’s chances and payouts, particularly for new bettors.
Somebody who works for the monitor makes an educated guess when horses have been entered right into a race exactly what every one of the odds will be if the gate opens to start the race. The individual who sets the morning line could be the race caller (announcer), a writer who covers the races on a daily basis, or actually anyone with experience handicapping.
Basically, anyone with a feel for the track who has a strong awareness of the way the public will wager based on previous performances and human relations for every horse sets the afternoon line.
After the ML experts arrive in their estimated chances, they factor in past results, trainers, jockeys, owners, what monitors the horses are operating at, and every horse’s history. Basically they examine everything a handicapper looks at.
The ML helps to know as you determine what horses you enjoy, and it can at times enable you to consider unique horses and get a sense of just how much a bet may pay.
What Is a Scratch in Horse Racing?
A horse that’s input to run in a race, however, the owner or coach decides he or she is not going to engage is scraped. To be excavated would be to be taken out of the race until it starts.
A horse could have sustained an injury, be ill, or not like the track conditions because it is raining or too hot and dry. Other times, the relations (owner/trainer) simply change their thoughts and believe there is a better chance for the horse to operate on another day.
If you bet on a horse to win and he or she’s scratched, your money gets reimbursed. This is a key characteristic of horse racing betting and this unique rule provides bettors some insurance if their preferred horse drops from a race. The one thing similar in more conventional sports betting is when baseball stakes are conditional on the starting pitcher playing.
Various tracks have varying rules about horses scratched in other types of stakes, but you get a refund, a consolation payout, or occasionally in the case of a Pick 3 or Pick 5 you can have your horse altered to whoever the favorite in the race will be. In order to know what’ll happen to your bet in the event of a scratch, then be sure to inspect your sportsbooks’ terms and conditions.
There’s More!
All of wagering can be intimidating at first, but our horse racing guides are intended to make you feel comfortable and confident in the bets you place.
To learn more about horse racing betting and all sorts of sports wagering, check out our betting 101 section.

Read more here: