Betting on horses on a racetrack is a form of wager. Each wager depends on the amount of the odds against the horses and also the horse racing results to determine the prize money. In most horse racing events, the odds are displayed on a large board which is also known as a tote board.
Generally, the odds displayed on the tote board are in the form of a ratio which many people might find difficult to understand. Basically, if a horse is given the odds of 5:1, it means that for every one dollar you wagered on it, you’ll get five in return. Most race tracks require a minimum bet of two dollars.
Now, some of you might wonder how these odds are compiled and why some horses have higher odds than the others. These odd are calculated by odd makers who follow a certain principle. First, they calculate the amount of money bet on a given horse and grand total of all the horses combined together. Then, they have to deduct a portion of the track’s take which is used to pay the state, local taxes, the horsemen, and so on. When they’ve figured out the cost, they deduct it together with the total bet money from the grand total. The final figure is then divided by the bet money to obtain the ratio.