How are the US Horse Racing Odds Calculated?

The US Horse Racing Odds were in the past calculated using the fixed odds system but nowadays the pari-mutuel system which is more objective and certain than the earlier system of calculating odds. Under the fixed odds system of calculating horse racing odds, the bookmaker gave the bettor or any other person who wanted to gamble a price was already set on particular horse for example 6:1. The bet then was put on ‘sale’ and the purchaser who bought it had the price fixed on him or her. This system was found to have some short comings and the US Horse Racing Odds use the pari-mutuel system in which the number of bettors and the size of the betting pool determine the number of odds. The pari-mutuel originated from the French race course tracks and has been adopted in the leading horse race tracks as the method of calculating odds. Under the US Horse Racing Odds, if you bet on horse A at a time when the tote board display is 4:1 for example you are not guaranteed entitlement to the pay out because of the fluctuation of the odds after the betting closes and before the start of a race.

The US Horse Racing Odds are the fraction or percentage of selecting a winner when you need to handicap a particular horse. From your handicap you can estimate the probability of a particular horse winning; if you feel that a particular horse has a 20% probability of winning, the fair odds for that horse winning is 4:1. Any thing else above the fair odds is a bargain where as anything less than the fairs odds gives you the green light to conduct a new selection of better rates. The US Horse Racing Odds use the par-mutuel system because it guarantees profits to the contestant regardless of its performance in the race. The amount taken by the contestant is usually a fraction of the total value of the pool; the contestant takes its take outs before any pay offs are made to the bettors and gamblers.

One advantage of the pari-mutuel system used by the US Horse Racing Odds is that the size of the pool determines what the contestant receives in the ultimate. A larger pool means more money and a smaller pool means less money; the results displayed on the tote board are the remainder after the contestant has taken out its money or entitlement.