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For instance, if I believe Horse A will finish first and Horse B will finish second, I would bet an exacta with A in the first slot and B in the second. If Horse A wins the race and Horse B finishes second, you win, however if Horse B comes in first and Horse A in second, you lose because the order matters. It is also possible to get creative and use multiple horses in each slot. A trifecta is the same as an exacta, except now you must correctly predict the first three finishers in order in a given race.
Boxing is also common practice for trifectas, but accounting for the extra spot adds a layer of complexity that often requires bettors to use multiple horses in each slot. A superfecta is the same as an exacta or trifecta except that it requires the bettor to correctly predict the first four finishers in order in a given race. Given the abundance of possible combinations, many tracks offer a base wager of just 10 cents for the superfecta. A Hi-5 demands the bettor correctly predict the first five finishers of a given race in order.
It is the most complex bet of the vertical exotics and not for the faint of heart. The daily double is the simplest form of the horizontal exotic wagers. Rather than betting a single race, the daily double requires the bettor to select the winner of two consecutive races. Formerly a rare offering at racetracks, daily doubles can now be placed on nearly every race, except the last race on a card.
The pick 3 is similar to the daily double, except that you must pick the winner of three consecutive races. Like the double, the bet must be placed prior to the start of the first race of the sequence and multiple horses can be utilized in each leg. Following the same pattern as the double and pick 3, in the pick 4 a bettor must select the winner of four consecutive races. These bets are often offered twice a day at a track, once earlier on the card and once later. The pick 5 requires bettors to correctly predict the winner of five consecutive races.
It also provides bettors the opportunity to wager a small amount for a potentially large payout. The most complex of the horizontal exotics, the pick 6 requires bettors to pick the winner of six consecutive races. This means that if you and another person were to both correctly pick all six winners, neither of you would win though there is typically a consolation payout.
There is also a Rainbow-6 Bet that is a special version of the Pick Win: This one is pretty much self-explanatory. Place: In order to cash a place bet, your horse must finish in either first or second. First the commission or take for the wagering company is deducted from the pool. For example, with a commission rate of Thus, the odds on Outcome 4 are 7-to-1 or, expressed as decimal odds , 8. Prior to the event, betting agencies will often provide approximates for what will be paid out for a given outcome should no more bets be accepted at the current time.
Using the wagers and commission rate above In real-life examples, such as horse racing , the pool size often extends into millions of dollars with many different types of outcomes winning horses and complex commission calculations.
The rounding loss is known as breakage and is retained by the betting agency as part of the commission. In some situations, a negative breakage may occur. For example, in horse racing when an overwhelming favorite wins or shows or places.
In an event with a set of n possible single-winner outcomes, with wagers W 1 , W 2 , The parimutuel system was invented by Catalan impresario Joseph Oller in The large amount of calculation involved in this system led to the invention of a specialized mechanical calculating machine known as a totalisator , "automatic totalisator" or "tote board", invented by the Australian engineer George Alfred Julius.
The first was installed at Ellerslie Racecourse , Auckland , New Zealand in , and they came into widespread use at race courses throughout the world. The U. Unlike many forms of casino gambling, in parimutuel betting the gambler bets against other gamblers, not the house, which necessarily implies that the bank cannot be broken. The science of predicting the outcome of a race is called handicapping. Independent off-track bookmakers typically have a smaller take and thus offer better payoffs, but they are illegal in some countries.
However, the introduction of Internet gambling led to "rebate shops". These off-shore betting shops promise to return some percentage of every bet made to the bettor. There may be several different types of bets, in which case each type of bet has its own pool. The basic bets involve predicting the order of finish for a single participant, as follows:.
In Canada and the United States , the most common types of bet on horse races include:. Win, place and show wagers class as straight bets , and the remaining wagers as exotic bets. Bettors usually make multiple wagers on exotic bets.
A box consists of a multiple wager in which bettors bet all possible combinations of a group of horses in the same race. A key involves making a multiple wager with a single horse in one race bet in one position with all possible combinations of other selected horses in a single race.
A wheel consists of betting all horses in one race of a bet involving two or more races. For example, a 1-all daily double wheel bets the 1-horse in the first race with every horse in the second. People making straight bets commonly employ the strategy of an "each way" bet. Here the bettor picks a horse and bets it will win, and makes an additional bet that it will show, so that theoretically if the horse runs third it will at least pay back the two bets. The Canadian and American equivalent is the bet across short for across the board : the bettor bets equal sums on the horse to win, place, and show.
A parlay , accumulator or roll-up consists of a series of bets in which bettors stake the winnings from one race on the next in order until either the bettor loses or the series completes successfully. In Australia, certain exotic bet types can be laid as "flexi" bets.
If the bet is successful, the bettor will get either the full winning amount shown on the board, or half the winning amount. Under a flexi system the bettor can nominate their desired total wager, and their percentage of payout is determined by this wager's relationship to the full unit price. If the bet is successful, the payout will be In recent times the "Roving Banker" variant for Trifecta and First4 betting is now offered.
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