Anyone who bets on a sport, whether it is horse racing, football, or basketball, knows that success is not all about luck. Today, I will continue with the second article in my series on betting on horse racing.
If you are completely new to this form of online betting, I recommend checking out our beginner’s guide, also written by me: How to bet on horse racing, first.
Introduction to horse racing odds payout
What are horse racing odds, and how to read them? This is a question we at Online-Gambling.io have been asked many times.
Simply put, horse racing odds are an indication of the return you can expect from your bet if it turns out to be a winner. If you are new to betting on horse racing, I recommend placing your money on a horse that has a higher chance of success. Yes, the profit will be less, but it is always good to play it safe in the beginning.
It is quite simple: the smaller the chance of success, the bigger the profit.
Learn how to read horse racing odds
For newbies, one of the most important things to first get familiar with and understand is the odds.
The lists of potential payouts can be confusing at first, but the truth is that reading them is simple.
Our team wants to help all beginners and not-so-beginners who have trouble calculating their winnings. Feel free to use the following table to help you whenever you are having trouble calculating your potential profit. For the purpose of the example, I have settled on the minimum bet, which is $2.
| Odds | Payout | Odds | Payout | Odds | Payout |
|---|---|---|---|---|---|
| 1/9 | $2.20 | 9/5 | $5.60 | 9/1 | $20.00 |
| 1/5 | $2.40 | 2/1 | $6.00 | 10/1 | $22.00 |
| 2/5 | $2.80 | 5/2 | $7.00 | 11/1 | $24.00 |
| 1/2 | $3.00 | 3/1 | $8.00 | 12/1 | $26.00 |
| 3/5 | $3.20 | 7/2 | $9.00 | 13/1 | $28.00 |
| 4/5 | $3.60 | 4/1 | $10.00 | 14/1 | $30.00 |
| 1/1 | $4.00 | 9/2 | $11.00 | 15/1 | $32.00 |
| 6/5 | $4.40 | 5/1 | $12.00 | 16/1 | $34.00 |
| 7/5 | $4.80 | 6/1 | $14.00 | 25/1 | $52.00 |
| 3/2 | $5.00 | 7/1 | $16.00 | 50/1 | $102.00 |
| 8/5 | $5.20 | 8/1 | $18.00 | 100/1 | $202.00 |
Calculating horse racing payout
Horse betting is hard! One reason is that the odds change every time a bet is placed. This is called “pari-mutuel” betting or “pool betting”. In typical betting games, you bet against the “house,” while in horse racing, you bet against the other bettors.
After the winning horse crosses the finish line, the house takes its share, usually 15%, and the remaining winnings are distributed among the people who bet on the winner.
And here are some of the most popular types of pari-mutuel bets:
Straight bets in horse racing
- Win Bets: Choosing the horse that crosses the finish line first.
- Place Bets: You are betting on a horse to finish second.
- Show Bets: Placing bets on a horse to finish third.
Exotic bets in horse racing
- Exacta: Pick the first and second-place horse in the right order.
- Trifecta: Pick the first three finishers in the right order.
- Trifecta Box: Pick the first three finishers to finish in any order.
- Trifecta Key: Pick three horses; choose one to win and the others to come in second or third in any order.
- Superfecta: Pick the order of the first four finishers in one race in the right order.
- Superfecta Box: Pick four finishers, they can finish in any order.
- Superfecta Key: Pick four finishers, choose one to win, and the other three finish in any order.
For beginners, I recommend sticking to Straight bets, as that is where the odds come into play. With exotic bets, there are no odds, as there are too many variables. With them, payouts are calculated differently. After the house takes its cut, the rest is split between the people who bet on the winner.
How is the horse racing payout calculated?
Subtracting the total winning dollars from the pool, then dividing the remaining amount by the cash bet on the winner, and finally adding the winning bet amount back in.
Let’s put it more clearly:
- Race: $100,000 in the winning bet pool.
- House takeout: $15,000 (15%)
This means there is $85,000 available to be won.
- Total bets on the winning horse: $50,000
- Your personal bet on the winning horse: $2 (the minimum)
The horse you put your bet on wins, and now what?
- To get the payout per dollar: $85,000 / $50,000 = $1.70
- Your $2 bet will pay back a total of $3.40
- You made a profit of $3.40 on a $2.00 bet.
The truth is, when it comes to horse racing odds and payouts, there are many factors involved. Not surprisingly, some people find it too confusing to even get into this type of sports betting. With this guide, I hope I have shed some light and made you more confident the next time you bet on horse racing.
I am proud to announce that we are now official partners with BetMGM Casino and BetMGM Sportsbook. You can read our newest BetMGM sportsbook review written by my colleague Mauro Rinaldi. And, if you feel ready and live in Florida, Louisiana, or Ohio, you can safely place your bets on horse racing on BetMGM’s platform. Be sure to re-read this article whenever you are unsure of the odds or your potential win.