Horse Racing Betting
There are many different types of bets that are able to be placed on horse races.
The two main methods of placing horse racing bets and determining odds are Parimutuel Betting and Fixed Odds Betting.
Parimutuel betting is the most common type of horse racing betting that takes place around the world and is often state regulated and taxed.
It is frequently run by a totaliser or 'tote' system which takes into account all money in the betting pool and determines the payout odds of winning bets once the house's cut is removed. Parimutuel betting differs from fixed odds betting in that the final payout is not set until the betting pool is closed.
Most online racebooks work using the fixed odds system, but many also offer parimutuel bets as well. With a fixed odds bet, the payout for a winning bet is agreed at the time a bet is placed and will not change. On course bookmakers offer fixed odds betting, changing the odds available as they take bets on certain outcomes.
A betting exchange, the most successful of which is BetFair, offers punters the chance to set their own fixed odds for the outcome of a race and bet against other bettors rather than against the house or a bookmaker. Although you never know if another punter accepting your bet at a betting exchange is in fact a bookmaker, which is often the case!
Many different types of bets are able to placed on a horse race via either a parimutuel or a fixed odds bet. The vast majority of the time you will be betting on which horse or horses you think will win or place in the race.
A Win Only bet means you are betting on which horse will win the race. If your horse wins, you get paid.
A Place bet means you are betting on a horse to run 1st, 2nd or 3rd.
An Each Way bet is very popular and means you are in fact having two seperate bets - one for the win and one for a place.
A Trifecta is a bet where you are attempting to predict which horses will run 1st, 2nd & 3rd. A winning trifecta bet will usually pay very well.
A Quinella is where you attempt to predict the horses that will run 1st & 2nd.