Horse racing betting is placing a bet on a horse in a race to win. It is a very popular form of sports betting and it offers many chances to win money. Betting on horses is different on betting exchanges because on these platforms bettors are allowed to place bets against a horse winning a race. Knowing how this works can give bettors more flexibility and more opportunities for bigger profit.
How to Bet on Horses on a Betting Exchange
On betting exchanges, horse racing bettors compete against other bettors. One believes a horse will win the race and they place a back bet on it. Another bettor needs to believe this horse will not win the race and place a lay bet on it. Both bettors agreed on the odds offered and they match their bets.
A back bet is the typical bet where bettors bet on a horse to win the race at certain odds. The difference is that on the exchange bettors compete against other bettors. Therefore there has to be another player believing this horse will not win the race and match the bet. If the horse finishes first in the race, the back bet wins and depending on the odds, bettors get their profit minus the commission fee charged on this winning bet by the exchange. If the horse does not finish first, the back bet loses and bettors lose their stake.
Example
A bettor chooses a horse race and they pick a horse they believe will win and they want to bet 10€ on it at odds of 3.0.
The exchange charges a 5% commission on all winning bets.
If the horse wins, the bettor gets 30€ in return minus 1,5€ commission = 28.5€
The net profit from this back bet is 18.5€
If the horse loses, the bettor loses their 10€ stake.
A lay bet allows bettors to bet on a horse not winning the race. As in betting exchanges there is not a bookmaker, the lay bettors assume this role by betting against a horse. If the horse does not win, the lay bet wins and the layer gets their stake back minus the commission charged by the exchange. If the horse wins, however, the layer must pay the backer their winnings depending on the odds they agreed upon. This is called liability and bettors should be careful as high odds usually mean high risk of losing a lot of money.
Example
A bettor chooses a horse race and they believe a certain horse will not win the race.
They place a lay bet on this horse and they stake 10€ at odds of 6.0.
The betting exchange charges a 5% commission fee on all winning bets.
The liability (the amount of money the bettor is risking to lose) is 50€ [stake x (odds – 1)]
If the horse loses the race, the lay bet wins and the bettor gets 9.5€ back (the 5% commission was deducted from the 10€ original stake).
If the horse wins, however, the bettor must pay 50€ to the backer.
Pros of Betting Exchanges for Horse Racing Betting
The biggest advantage of using a betting exchange for horse racing betting is the lay option. Bettors have more opportunities to win money because they can bet on horses losing rather than just winning. As the chances are higher to pick a losing horse, bettors are more likely to win in horse racing where there are many horses and only one can win.
Another advantage is that the odds are often better than traditional bookmakers. Since there is no bookmaker margin, users get more value for their bets. Unlike traditional bookmakers who set the odds, betting exchanges rely on the market to determine the odds. This way the odds are fairer and more competitive. Plus bettors have the option to offer their own odds and have more control over their bets.
Betting exchange environments are also more transparent. Bettors can see the liquidity in every market of every event. This means that they can see the amount of money available at different odds. This helps them to decide better about their bets.
Regardless of the benefits, horse racing betting requires a lot of knowledge and effort to be profitable. Bettors can use the flexibility betting exchange provide and apply their skills. They need to do proper research and study the horses and jockeys before placing bets.
Not All Betting Exchanges Offer Lay Betting on Horses
It is important to note that apart from Betfair which is the largest and most popular betting exchange in the world, it is very hard to find an exchange where the lay option is available for horse racing.
The reason for this is that lay betting requires a large number of users willing to take the other side of the bet. Many smaller exchanges do not have enough liquidity to support lay betting markets effectively. Without enough users placing both back and lay bets, the market cannot function properly and it is difficult to match bets fairly.
In Short
In betting exchanges, horse racing betting gives more opportunities for profit as bettors can place both back and lay bets. They can have more betting options, more flexibility and control over their bets and they often find better and fairer odds. Not all betting exchanges, however, offer lay betting for horse racing due to liquidity issues. Taking advantage of the betting exchange benefits and with good preparation, bettors can be very successful.