This means that the house’s true takout percentage is often between 16% and 17%, rather than the posted value of 15%.
Abracadabra: (1190 – 200)/200 = 4.95
However, in nearly all race tracks that allow betting, the payout odds are rounded down to the next tenth, this means that the payouts will actually be
Everything after the tenths place is dropped. For example, if the bettor wagers $20 on A, then when he cashes in his ticket he will get his original $20 plus $99.
Bad Whiskey: 2.9
One thing to keep in mind when you’re reading the toteboard before the race has begun is that the odds will change as more players enter the pool and place new bets on different outcomes. Now suppose the race track takes a standard 15% cut from the pool, so the true size of the pool is $1190.
What these numbers mean is that if a gamber bets on Abracadabra and she wins, the gambler will net 4.95 times the amount bet. If you should place a winning bet, the house will take at most 9 cents per dollar and at mininum 0 cents per dollar, for an average of 4.5 cents per dollar. What this means is that the race track takes in more than its standard takeout from the pool, and win wagers payout a little bit less. Since most horse racing arenas that allow betting break on a dime, meaning they round down to the nearest tenth, a winning bet may be reduced by a maximum of 9 cents per dollar wagered. The betting pool before the house takes its cut is $1400. The same $20 win wager on Abracadabra will now net only $98, a decrease of 5 cents per dollar bet.
Without breakage, the payout odds for each horse are calculated as follows.
Diomedes: (1190 – 500)/500 = 1.38
In horse race gambling, breakage refers to the way the house rounds down the payout odds on the outcomes of a race. As for the wagers, $200 is staked on A, $300 is staked on B, $400 is staked on C, and $500 is staked on D. More Practical Math Articles:
Four horses are competing in a race: Abracadabra, Bad Whiskey, Copper Penny, and Diomedes. Here is a simple example that shows the effects of breakage, or you can also test different scenarios using a horse race betting calculator.
. And as the odds change, the breakage also changes.
Copper Penny: 1.9
Copper Penny: (1190 – 400)/400 = 1.975
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Bad Whiskey: (1190 – 300)/300 = 2.9666667
You won’t know how breakage will affect your payout until the betting station has closed