| You will notice that as wagering on a race progresses | | | | The odds are usually in the form of x/y (e.g. 5/1, 9 |
| closer to post time, the odds will change. Why is that | | | | 5). Dividing x by y gives a ratio to 1. The smallest |
| you ask? The Cash that is wagered in a horse race is | | | | ratio or the largest amount of money on a number |
| counted up and put into Pools. What is a Pool? A Pool | | | | represents the favorite. |
| is where the total amount of money that is wagered | | | | Winning odds of 2/1 will pay $6.00 for a $2 bet, while |
| on a specific type of bet is held to be redistributed | | | | 5/1 will pay $12.00 for a $2 bet. Payout is calculated |
| to patrons that have correctly selected the outcome | | | | by (odds ratio to 1) x bet amount + bet amount. |
| of the specific wager they have placed. Out of these | | | | Example: For odds of 5/1, the approximate payout |
| pools certain percentages are subtracted. The | | | | for a $2 bet is 5 x $2 = $10 + $2 = $12. |
| Government receives a percentage (taxes) for | | | | Some tracks allow different minimum amounts on |
| allowing the race in a certain jurisdiction. The | | | | each type of bet; generally, $1 bets tends to be the |
| Racetracks receive a percentage for promotions, | | | | minimum on all bets. The offshore sportsbook odds |
| maintaining the racetrack, and paying employees. The | | | | are calculated based on the sales for the bet minus a |
| horsemen receive a percentage that makes the Race | | | | government, and handling tax. These deductions vary |
| Tracks able to offer purse money to the owners | | | | and are usually controlled by a regulatory body. |
| and trainers for racing horses. If there was no | | | | Deductions may vary in the same track if there are |
| money, there would be no racing. After the | | | | simulcast races. In addition some tracks tax payouts |
| percentage is removed, the remaining money is paid | | | | in excess of a specified limit; generally, this limit is 600 |
| out. This is where gamblers get their payouts for | | | | 1. |
| winning tickets. | | | | |