WIN:
This wager, as its name implies, requires that your selection finish first. (The takeout rate on a Win bet (as well as Place and Show wagers), that is an amount of money, generally 15-20% depending on the track that is removed from each pool to cover expenses. This is similar to the “vig” in sports betting and how the sportsbooks assure they make money.) The remainder of the pool is then distributed to those that hold Win tickets on the first-place horse. (The Win pool is separate from the Place and Show pools.)
In this example, with seven minutes to post, the #6 horse is the favorite at 8-5, or 1.6-1. If the horse wins, you would earn $1.60 for every $1 wagered, plus earn your stake back. The payoff for a $2 Win bet would thus be $5.20.
On the other end of the spectrum, if the #4 horse wins at 29-1, the payoff for a $2 bet would be a minimum of $60 and as much as $61.80, depending on breakage. Breakage is a device tracks use to compute payoffs so they can be rounded to the nearest, lowest 20-cent increment rather than paying in exact amounts (e.g. a calculated $60.94 payoff would instead pay $60.80). Payouts on most toteboards post-race for win, place, and show bets are displayed based on a $2 bet.
It is important to note that horse racing bets are pari-mutuel, meaning the odds of the horses will continually fluctuate up until race time based on how much money is being bet on each horse. Unlike most other types of sports betting, you do not lock in odds on horses at the time of your bet. If you place a $2 bet on a horse and its odds are 7-1 at the time of your bet but that same horse goes off at 4-1 your payout would be at the 4-1 price.
PLACE:
The Place bet requires your selection to finish in either second or third place. It’s easier to cash than a Win bet, but the payoffs are typically smaller due to the Place pool being divided two ways rather than one (bettors with Place money on the first horse and the second horse divides the pool).
Place odds and likely payoffs are not readily available to the public because they are dependent on who runs first and second. Though there are ways of determining approximate payoffs by calculating the amount of money bet on each horse in the Place pool, newcomers to the game are advised to enjoy the experience and not get too hung up on the mathematics. That’s what the track’s mutuels department is for. Many apps and online websites that accept wagers will provide a payout estimate range for place and show bets that before you make your bet.
SHOW:
The easiest of the three straight wagers to cash, it requires that your selection finish first, second, or third. Because it’s the easiest, and the fact the pool is divided among three groups of ticket holders, the payoffs can be very low. If you’re betting favorites, the Return on Investment (ROI) can often be less than $1 for every $2 wagered. As is the case with Place bets, odds and likely payoffs are not readily available but an approximate return can be computed.
While Show bets are good ones for beginners with a low-risk threshold, winning the equivalent (sometimes) of pocket change will not be terribly exciting for some.
A race has been run and the payoffs have been posted. In this graphic the #1 horse came in first, the #4 horse ran second and the #3 horse came in third. How much have we won?
$2 Win on #1 - $7.40
$2 Win on #4 - $0
$2 Win on #3 - $0
$2 Place on #1 - $4.00
$2 Place on #4 - $12.80
$2 Place on #3 - $0
$2 Show on #1 - $2.80
$2 Show on #4 - $9.20
$2 Show on #3 - $6.20
The track handicapper sets the morning line, which are the odds he believes the horses will be at post time. As money is wagered, the odds change continuously until post time, and are determined by the amount of money wagered on each horse.
An odds maker for each track sets the morning line for each horse. The odds given are based on what he/she believes are fair and accurate prices for each horse based on past performances, speed figures, workouts, etc. The morning line odds are the starting prices of each horse, but as money is wagered, the odds change continuously until post time depending on the amount of money wagered on each horse.
EXACTA:
Wager placed on the horses that will finish in first and second place.
TRIFECTA:
Wager placed on the horses that will finish in first, second, and third place.
SUPERFECTA:
Wager placed on the horses that will finish in first, second, third, and fourth place.
DAILY DOUBLE:
Wager placed on the winning horse in 2 consecutive races.
PICK 3:
Wager placed on the winning horse in 3 consecutive races.
PICK 4:
Wager placed on the winning horse in 4 consecutive races.
Wagers for these bets can be placed straight or multiple horses can be “boxed” to increase the likelihood of hitting a winning ticket.
