Odds and Payouts
Racing odds and payouts are based on how many people bet on a given horse. You aren't betting against the track or betting parlor; you're pitting your judgment against that of all the other bettors. A popular favorite, therefore, may be offered at very short odds, say 1:5, but may not necessarily be the best horse in the race. Unlike sportsbook (see Chapter 14), your odds are not locked in at the time you place your bet. Instead, you get whatever the closing odds are on your particular horse.
At the track, the tote board (shorthand for totalizator board, the original name for the board) continually updates the odds for the next race to reflect wagering activity. When a race is completed, the tote board shows the horses that finished “in the money,” the odds, and the payout for each. The payout figure includes the return of the original wager. The payout on a 3:1 horse, for example, will be displayed as $8 — $6 in winnings, plus the return of the $2 wagered.
In most states, the return on a $2 bet is rounded to the nearest ten cents after the winners' pool is divided. For example, if the actual share comes out to $5.22, the official payout will be $5.20. The track keeps the difference, called the “breakage,” and this forms a significant portion of a track's profits.
Payouts may vary according to how much the track keeps to cover operating expenses and state and local taxes. This take can be between 14 percent and 25 percent, depending on the state and, sometimes, on the type of wager. With these differences in mind, following is a typical payout table for a $2 bet (remember that the payout includes the return of your original wager).
Odds |
Payout |
Odds |
Payout |
1:5 |
$2.40 |
5:2 |
$7.00 |
2:5 |
$2.80 |
3:1 |
$8.00 |
1:2 |
$3.00 |
7:2 |
$9.00 |
3:5 |
$3.20 |
4:1 |
$10.00 |
4:5 |
$3.60 |
9:2 |
$11.00 |
1:1 |
$4.00 |
5:1 |
$12.00 |
6:5 |
$4.40 |
6:1 |
$14.00 |
7:5 |
$4.80 |
7:1 |
$16.00 |
3:2 |
$5.00 |
8:1 |
$18.00 |
8:5 |
$5.20 |
9:1 |
$20.00 |
9:5 |
$5.60 |
10:1 |
$22.00 |
2:1 |
$6.00 |
Judging horses is a fine art that professionals spend years perfecting. If you're new to racing and are unsure what to look for in a horse, here are a few suggestions to help you get started. First, look at the early odds posted by the experts. These are usually a good indication of which horses will finish in the money, and you conceivably could cover first, second, and third place with across-the-board bets on six horses.
Second, look for winning horses and winning drivers or jockeys. Horses, like human athletes, experience streaks and peaks in their performances. A horse that has won before is more likely to win again. A driver or jockey who has a high win rate clearly is doing something right as well.
Finally, as in any other form of gambling, establish a bankroll before you get to the track or betting parlor, and stick with it once you're there. Set a stop-loss limit; for example, you might start with $100 and decide to quit when you're down to $50. Also set a limit for your winnings. If your goal is to win $50, stop when you reach that goal. Horseracing is entertainment, and the wagering is just another way to keep it interesting. If you aren't enjoying yourself, it's time to leave.
