The main ways to place horse racing bets are through a traditional bookmaker or through a betting exchange. These ways offer different types of betting and it is very important for horse racing bettors to understand how each works and how to tell the difference between them. This knowledge will help them apply their strategies better.
How Betting on Horses Works in Traditional Bookmakers
Traditional bookmakers are also known as sportsbooks. In every sports, bookmakers set fixed odds. For horse racing, odds makers take into account various factors such as track conditions, horse and jockey form, age, injuries, past performances, betting patterns and more and they calculate the probabilities for each horse winning. This way they set fixed odds for every horse race.
When a bettors places a bet, they pick a horse and they bet that this horse will win the race. The opposite side of the bet is taken by the bookmaker. This means that the bettor is betting against the bookmaker. If the bettor wins the bet, the bookmaker has the responsibility to pay the bettor according to the odds and the stake.
How Betting on Horses Works in Betting Exchanges
Betting exchanges work very differently because they use the peer-to-peer betting system. The exchanges do not set odds and they don’t take bets directly. Instead, they allow bettors to place bets against other bettors in the platform. The odds are set by the bettors themselves depending on the supply and demand in each market. This means that the prices of the odds are set by market participants and not odds makers working for sportsbooks.
In order for this system to work, there are two types of bets. Bettors can place a back bet. This type of bet is identical to the regular type of bet any bettor would place in a traditional sportsbook. They pick a team, player, horse etc and they bet that this selection will win.
As there has to be another bettor to take the opposite side of the bet, there is another type knows as lay bet. In this type of bet, a bettor picks a team, players, horse etc and they bet that their selection will not win.
Every back bet needs to be matched by a lay bet on the same event and market at agreed odds and stakes. As soon as a bet is matched, bettors wait for the results and they receive their winnings or they pay out their losses.
In horse racing, it is difficult to place a lay bet, though, because not every betting exchange allows lay betting on horses. Therefore, it is very important to choose a betting exchange that offers the lay feature on horse racing.
Types of Horse Racing Bets
Simple Bets
Simple bets are straightforward and they are very easy to understand. They are based on picking a horse to win or place.
- Win Bet
Bettors need to pick a horse to win the race. - Place Bet
Bettors need to pick a horse they believe will finish in the top positions, usually 1st, 2nd, or 3rd. - Each-way Bet
This is a combination of win and place bets. Bettors pick a horse to win and also to place, finishing in the top positions.
Exotic Bets
Exotic bets are a bit more complicated. In these bets bettors need to predict more than one outcome. The chances of winning are less, but the profit is much higher than the simple bets.
Exacta
Bettors need to pick two horses to finish in the top two positions in the exact order.
Trifecta
Bettors need to pick three horses to finish in the top three positions in the exact order.
Superfecta
Bettors need to pick four horses to finish in the top four positions in the exact order.
Quinella
Bettors need to pick two horses to finish in the top two positions, but the order does not matter.
Tricast
Bettors need to pick the top three finishers in any order.
Multi-race Bets
Multi-race bets allow bettors to place many bets from different races into one bet. They basically need to predict the winners in more than one race and it will be count as one big bet.
Accummulator/Parlay
This is a bet on multiple horses in different races. Bettors need all of them to win in order to win the bet. If one horse loses, the whole bet is lost.
Multi-race bets give a chance to win more money by combining several races into one bet, but they are risky because if one horse loses, bettors lose the entire bet.
Tote Jackpots
Jackpots are bets where bettors try to predict a group of horses in a race and the prize pool grows bigger as more people place the same bet.
Tote Placepot
Bettors need to pick one horse to place in each of several races on the same day.
Tote Jackpot
Bettors need to pick the winner horses for several races and the prize pool grows each time no one wins.
Carryover Bets
When no one wins a jackpot, the prize pool carries over to the next race or event.
Carryover Pool
If no one wins in jackpot in the previous race, the money from the previous bet is added to the next jackpot pool.
Why Not All Types of Horse Racing Bets Are Available in Betting Exchanges?
While betting exchanges offer many advantages, especially with the lay feature and the odds modification, they do not support all the horse racing bets found in traditional bookmakers for many reasons.
Some bets, like exotic bets, require complex matching. Multi-race bets depend on strong pool betting systems, while others like Jackpots and Carryover bets need centralized control in order to work.
Betting exchanges rely on the users to offer and accept bets. Types of bets like parlay require multiple markets to be combined into one, and this is very difficult to manage in a betting exchange system.
Betting exchanges are also based on a dynamic odds system and not a fixed one. The odds change quickly as people place bets. Bettors on exchanges are essentially creating their own markets, so there is a limit to how many people can participate in certain bets. Bookmakers can accept limitless number of bets, therefore jackpots and carryover bets are more easy to be found there.
In Conclusion
There is not a better system between traditional sportsbooks and betting exchanges when it comes to horse racing betting. It all depends on what each bettor wants to achieve. Those looking for a chance to yield very high profits and they are willing to take big risks, they would find a lot of horse racing bets and opportunities in traditional bookmakers. Those looking for more flexibility in their options, low risk and better control over their odds, they would find plenty of options on a betting exchange. Understanding the differences between the two systems can help bettors make better decisions when placing their bets.