For sports bettors, fixed odds are all they’ve ever really known. They are the backbone of an billion-dollar industry. But for many years in the United States, horse racing has eschewed fixed odds in favor of a parimutuel system.
For the gambling outsider, all this talk about fixed odds and parimutuel odds can be confusing. We aim to simplify these concepts below, while focusing on the past, present and future of fixed odds in stateside horse racing.
Fixed odds simply means that the bettor, when he or she places their wager, is locking in a price on the team or athlete in question. This system makes plenty of sense in the sports world, as wagers for some games can be placed many hours or even days in advance. But for horse racing, as most tracks offer at least eight races a day, the parimutuel system has always made more sense.
Parimutuel wagering means that when you place your bet, you do so not knowing the exact odds you’ll get on a potential winning wager until the gates open and the race begins. Morning-line odds may offer a guideline, but horseplayers can bet however they wish and affect the odds accordingly.
Though fixed odds wagering on horse racing is wildly popular in England, it has failed to find a foothold in America, though not for lack of effort. Racetracks have not really had an impetus to change, as horse racing bettors in the states seem to be content with the parimutuel system. Handle was up month-over month from 2019 on seven occasions in 2020 in spite of the COVID-19 pandemic
It’s truly a matter of opinion whether the fixed odds system or the parimutuel system is better. Though the option of having both might sound appealing, bettors should realize that the parimutuel system would be more prone to drastic changes if significant money is thrown into the fixed odds pool instead.
As of now, no racetracks in America offer fixed odds wagering, though that could change in the future.
Fixed odds are occasionally offered by Las Vegas sportsbooks, but only for certain races, namely the Kentucky Derby. Bettors can place a future wager on who they think will win the “Run for the Roses” weeks or even months before the race takes place at a fixed price. Often, you can grab near triple digit odds on over 100 horses which is quite appealing to the horse bettor.
Beware, unlike a wager made on race day, that bet is not eligible for a refund in the event that horse doesn’t run.