Even though horse racing is one of the most popular sports in terms of betting, it is surprising how many people make the bets without fully understanding how the betting system work. When it comes to the betting process of horse racing, all the numbers on the board might look confusing, but the odds and payouts are pretty easy to calculate.
You don’t have to be a math genius or betting guru to calculate how much is your potential win, and at these times when there are betting calculators everywhere, you can just put in the odds and you’ll get how much money you’ll potentially win.
The entire system falls on how the odds work, and once you master the odds, you’ll be able to make wiser bets that go along with your profit strategy.
So, let’s find out how to calculate the winning odds in horse race betting.
Reading the Odds
In order to understand how much are your profits while horse racing betting, you need to learn how to read the odds. When it comes to reading the information on the betting board the easiest information to digest is the win odds quoted on each horse.
Since your profits heavily depend on how much money you wager, the odds won’t tell you how much you will profit from a certain bet, but you’ll get the amount that you have to bet in order to reach that winning.
For example, 8-1 means that you will get $8 in profit for every $1 you wager which means that if you bet $2 you’ll get $16 back. With that said, this is the total amount of money you’ll win from a bet, and in order to calculate your profits, you’ll need to take out your initial wager or money invested in the bet. You can find more information here: edge.twinspires.com/racing/wagering/
How to Calculate Winning Odds on in a Horse Race
There are different types of odds in horse racing. The biggest difference in odds is their type which is very important when you calculate your winnings. There are fixed and variable odds in horse racing. Fixed odds are easier to calculate just because the amount you wager and the odds cannot change once you made the bet.
On the other hand, variable odds which are more present in horse racing are calculated after the race once the organizers have the total pool.
So, once all the people made their bets in a horse race, the total pool is calculated which is later split across all winning bets.
But before the tracks pay out the winners, it is important to understand that they usually take a cut anywhere from 14-20% in order to pay state taxes, local taxes, payment for the participants in the race, and track expenses.
In order to calculate the exact odds in a horse race, you need to subtract the take from the total pool, then subtract the amount bet on your horse in order to get to your total winning amount.
In order to get a better idea about how to calculate your bets, here is an example:
Total Pool: $1000
Amount bet on horse No.2: $200
Take amount: 17%
$1000 minus 17% equals $830
$830 minus $200 equals $630
$630 divided by $200 equals $3.15
To round this amount off we’ll get $3 or the odds are 3-1, which means that you’ll get $3 back for every dollar spent.
Even though calculating the winning is a somehow simple process, you can also use a betting calculator to simplify the process even more. There are plenty of betting calculators that will give you the exact profits on every bet once you enter all the necessary data.
In order to improve your horse racing betting skills and develop a profitable strategy, you need to fully understand how the betting system works and how the odds are calculated.