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Where gambling is allowed, most tracks offer parimutuel betting where gamblers' money is pooled and shared proportionally among the winners once a deduction has been made from the pool. In some countries — notably the UK, Ireland, and Australia — an alternative and more popular facility is provided by bookmakers who effectively make a market in odds. This allows the gambler to 'lock in' odds on a horse at a particular time known as 'taking the price' in the UK.
In North American racing, the three most common ways to bet money are to win , to place , and to show. A bet to win , sometimes called a "straight" bet, means staking money on the horse, and if it comes in first place, the bet is a winner.
In a bet to place , you are betting on your horse to finish either first or second. A bet to show wins if the horse finishes first, second or third. Since it is much easier to select a horse to finish first, second, or third than it is to select a horse just for first, the show payoffs will be much lower on average than win payoffs. If there are a small number of horses in the race, show or place bets may not be offered or if bets have already been made, they are cancelled and the wagered amounts refunded.
In Europe, Australia, and Asia, betting to place is different since the number of "payout places" varies depending on the size of the field that takes part in the race. For example, in a race with seven or less runners in the UK, only the first two finishers would be considered winning bets with most bookmakers.
Three places are paid for eight or more runners, whilst a handicap race with 16 runners or more will see the first four places being classed as "placed". A show bet in the North American sense does not exist in these locations. An each-way bet sees the total bet being split in two, with half being placed on the win, and half on the place. The full odds are paid if the horse wins, plus the place portion , with a quarter or a fifth of the odds depending on the race-type and the number of runners if only the place section of the bet is successful.
In the UK some bookmakers will pay for the first five some independent firms have even paid the first six for a place on the Grand National. This additional concession is offered because of the large number of runners in the race maximum Occasionally other handicap races with large fields numbers of runners receive the same treatment from various bookmakers, especially if they are sponsoring the race.
Each portion is treated by the totalizator as a separate bet, so an across-the-board bet is merely a convenience for bettors and parimutuel clerks. In addition to straight wagers, "exotic" wagers offer bettors an opportunity to incorporate the placement of different horses in one or multiple races.
The two broad types of exotic wagers are horizontal and vertical. Horizontal exotic wagers are bets on multiple horses in one particular race, while vertical exotic wagers involve predicting results across multiple races. Both have specific options for which bets are available and are detailed below.
In the most basic horizontal wager, an exacta , the bettor selects the first and second place horses in the exact order. Picking the first three finishers in exact order is called a trifecta and a superfecta refers to the specific finishing order of the top four horses. Boxing is a tactic that increases the odds of winning an exotic wager by removing the need to choose the exact order. A quinella , which boxes an exacta allowing the first two finishers to come in any order and still win , is the basic box, but boxing can be applied to the trifecta and superfecta as well.
In a sense, a win bet can be thought of as a specific type of wheel bet. Vertical bets are spread over different races. A daily double is an exotic wager placed on the winner of two consecutive races. Picking the winner of three, four, five or six straight races is referred to as a pick-3 , pick-4 , pick-5 and pick-6 respectively. In addition to traditional betting with a bookmaker, punters bettors are able to both back and lay money on an online betting exchange.
Punters who lay the odds are in effect acting as a bookmaker. The odds of a horse are set by the market conditions of the betting exchange which is dictated to by the activity of the members. By the late 19th century over tracks were in operation in the country but those opposed to gambling caused the banning of bookmakers and horse racing at the beginning of the next century.
In pari-mutuel tote betting was introduced, helping the industry to prosper and that has continued to be the case to the present day. Pari-mutuel betting is currently legal in 32 US states. Similarly, physically staggered starting positions can be used, for example, in greyhound racing a handicap race is where greyhounds based on their ability start from different starting traps set at different measurements from the finish line, and in human foot racing, for example, the Stawell Gift.
Some motorsport events, especially in sports car racing , demand teams to stop the vehicle in the pitbox a fixed period of time depending on the drivers' classification, thus giving advantage to less skilled drivers. An example of a championship using this system is the International GT Open.
The advantage of this system over ballast weight systems is that vehicles have the normal performance on track, so better drivers will be able to recover time and overtake slower drivers. A handicap race in horse racing is a race in which horses carry different weights, allocated by the handicapper.
A better horse will carry a heavier weight, to give him or her a disadvantage when racing against slower horses. The handicapper's goal in assigning handicap weights is to enable all the horses to finish together in a dead heat. The skill in betting on a handicap horse race is in determining which horse can overcome its handicap. Handicapping in the sport of golf enables players and teams of varying abilities to compete against one another. A golf handicap is a numerical measure of a golfer's potential or "average best".
Better players are those with the lowest handicaps. Handicapping in go includes the weaker player being given an advantage by placing a number of stones before the stronger player commences, and by final points adjustment. Handicapping in shogi is achieved by removing one or more pieces from the stronger player's side. Shogi Japanese chess and many of its variants have handicaps.
The polo handicap is an estimation of the player's worth to his or her team. It is an overall rating of a player's horsemanship, team play, knowledge of the game, strategy and horses. The difference between the total of the polo handicaps for the players on each team is then used to determine the minimum score difference for the better team to score to enable them to win.
In polo, every player is awarded an individual handicap depending on performance. Handicaps for sailing vessels in sailing races have varied throughout history, and they also vary by country, and by sailing organisation. Sailing handicap standards exist internationally, nationally, and within individual sailing clubs. Sailing race handicaps may be based on vessel capability and-or crew experience, and today typically adjust the time a vessel takes to reach the finish point of the race.
There are strategies that involve differences in the lines on the same event at different books. One bet is called a "middle", which when a player finds two books that offer different point spreads for the same event. They will bet the more favorable spread at both books, and if the final score falls between the two, the bettor will win both bets. On the other hand, if the total falls outside the range of the "middle" the bettor only loses a small percentage of a bet the "juice" or "vig" taken by the house.
If a player bets Team B at Book 1, and Team A at Book 2, he will win both bets if either side wins by 2 or less points, and will win one bet and lose the other known as a "side" if either team wins by 3 points. Another strategy, known as arbitrage, or an "arb" or "scalp", involves finding different moneylines for the same event. In this case, the bettor will bet the more favorable line at both books, and have a guaranteed profit.
This is a no-risk bet, as the player is guaranteed a profit no matter the result of the game. Because sports betting had a social taboo at the time, Snyder was not allowed to mention betting on games specifically. Instead, he would predict the score. Over the years the attitude towards sports betting, and handicapping in general, has changed. Billy Walters was profiled by 60 Minutes because of his handicapping abilities. D's and works off of algorithmic information for his predictions.
In the past, very few people did any mathematical calculations when handicapping sporting events. Predictions were usually made from hunches or information not readily available to the public. However, with the advancement of technology computers powerful enough to run advanced simulation models now frequent homes and offices. Brian Burke, author of The Fifth Down blog featured in the New York Times , wrote a formula using advanced statistical techniques that has shown consistency correctly predicting NFL winners.
Like Wall Street did in the s, the sports handicapping industry is undergoing a quantitative revolution. Many successful handicappers also use money management systems similar to financial investment professionals. The most popular, and mathematically superior, system is the Kelly criterion. It is a formula for maximizing profits and minimizing losses based on payout odds and win probability of the underlying asset.
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Main article: Handicap horse racing. Main article: Handicap golf.
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