Horse Racing Odds Betting Calculator
After learning how to read horse racing odds, it is important to then calculate payouts for your bets. Each different type of bet has its own payout potential, but it is often hard to calculate some payouts since odds fluctuate constantly.
Horse race betting is based on the pari-mutuel betting system, which means you are betting against other bettors. The wagers are gathered in a pool for each bet, and they are dispersed after the track takes a cut to reinvest in racing.
You will often see the same odds in every race, and the minimum standard bet is usually $2. However, it can be lower depending on the track or online betting platform.
By looking at the chart below, you can easily calculate some of the most common payouts for a winning bet:
Breakdown of Bets
Horse racing payouts depend on which type of bet you actually place, with the amount varying greatly between straight and exotic bets.
Let’s first take a look at the different types of bets:
While Win bets are easy to calculate based on the chart above, exotic bets can be more tricky. Exotic bets do not have exact horse racing odds due to the many variables involved with them. However, most of the top online sportsbooks offer probable payouts for certain wagers like the Exacta.
Payouts for exotic bets are also calculated in a different way, as 15% of the amount left after the house takes its cut is divided between the winners. The amount of winning dollars is then subtracted from the total pool, and then the remaining pool is divided by the amount of money bet on the winner. The final step is for that amount to be added back into the winning bet amount.
Here is a breakdown that can make this seemingly complex process more simple:
In actual horse race betting, payout processes depend on the racetrack and rely on the actual odds. They are rounded down to the nearest nickel or dime, which is called breakage.
Chances of Hitting Different Bets
Another key aspect of calculating payouts has to do with which type of bet you place. Depending on the wager, you are going to have anywhere from a very good chance of collecting to a highly unlikely chance. The more difficult it becomes to win a certain bet, the higher your payout potential goes.
Let’s take a look at some of the most common types of horse racing bets, how hard it is to hit them, and what the payout potential looks like:
There are many different aspects to horse racing odds, but they are really not as confusing as they appear. Once you learn how the odds work, what they are based on, and how to calculate payouts, you will have no problem placing educated bets while knowing your payout potential.