Betting on horse racing

Modern horse betting started in Great Britain in the early 1600s during the reign of King James I.

[2][3] Gamblers can stake money on the final placement of the horses taking part in a race.

Parimutuel betting also provides purse money to participants and a considerable amount of tax revenue, with over $100 billion being wagered annually in 53 countries.

[4][5][6] 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.

In North American racing, the three most common ways to bet money are to win, to place, and to show.

For instance, if a $2 across-the-board bet (total outlay of $6) were staked on a horse which finished second, paying $4.20 to place and $3.00 to show, the bettor would receive $7.20 on what is essentially a $6 wager.

In the most basic horizontal wager, an exacta, the bettor selects the first and second place horses in the exact order.

Boxing is a tactic that increases the odds of winning an exotic wager by removing the need to choose the exact order.

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.

In 1908 pari-mutuel (tote) betting was introduced, helping the industry to prosper and that has continued to be the case to the present day.

$149.9 million was wagered on the race in 2019, beating the previous record amount of $139.2 set 12 months earlier.

Between April 2017 and March 2018, off-course horse racing betting turnover in Great Britain amounted to £4.3 billion.

[16] The majority of the money wagered on horse racing in the UK is with bookmakers, either in betting shops or online.

This figure is expected to decrease significantly in 2019 when government restrictions on Fixed Odds Betting Terminals (FOBTs) comes into force.