Each-way and horse racing bets: the maths, explained

An each-way bet is two equal bets in one: a win bet, and a place bet paid at a fraction of the odds (often 1/4 or 1/5) if your horse finishes in the paid places. So "£5 each-way" costs £10. Exotics ask you to name the finishing order. Rule 4 and dead heats change what a winning bet pays. Here is each one with real numbers.

Each-way bets: two bets in one

An each-way bet is an equal win bet and place bet. "£5 each-way" costs £10: £5 on the horse to win and £5 on it to place. The place part pays at a fraction of the win odds, for a set number of places.

The usual place terms in British racing, as published by Great British Racing, depend on the race type and number of runners:

These are the defaults, set out by Great British Racing and in Leicester Racecourse's betting guide. Check the place terms on the bet slip before you bet: they decide what the place part pays.

Each-way worked examples

£5 each-way at 10/1, 1/5 odds, three places (£10 total).

• Wins: win part returns £5 × (10 + 1) = £55. Place part pays at 10/1 ÷ 5 = 2/1, returning £5 × 3 = £15. Total £70, a profit of £60.
• Places but does not win: the win part loses; the place part returns £15. Profit £5.
• Unplaced: you lose £10.

£5 each-way at 8/1, 1/4 odds, two places (£10 total). Place odds are 8/1 ÷ 4 = 2/1. A win returns £45 + £15 = £60. A place returns £15.

£5 each-way at 2/1, 1/5 odds. Place odds are 2/1 ÷ 5 = 2/5. If the horse places, the place part returns £5 × 1.4 = £7, so you are £3 down overall. Each-way betting on short-priced horses can lose money even when the horse places.

If you prefer decimal prices, convert them here:

Win, place and show (US)

US racing uses pari-mutuel pools rather than fixed odds. All bets of one type go into a pool, the operator takes its cut, and the rest is shared among winning tickets. Payouts are not known until the pool closes.

• Win: your horse must finish first.
• Place: your horse must finish first or second.
• Show: your horse must finish first, second or third.

Unlike UK each-way, these are separate bets with separate pools. A place bet is not paid at a fixed fraction of the win odds.

On US legality: federal law, the Interstate Horseracing Act, covers interstate pari-mutuel wagers placed by telephone or other electronic media "where lawful in each State involved", with consent from the host racing association, the host racing commission and the off-track racing commission. In practice, online account wagering (advance deposit wagering) depends on the law in both the bettor's state and the track's state.

Exotic bets: forecasts, tricasts, exactas and more

Exotics pay more because you must name the finishing order:

• Straight forecast / exacta: 1st and 2nd in the correct order. One bet.
• Reverse forecast / exacta box of two: 1st and 2nd in either order. Two bets, so double the stake.
• Combination forecast: three or more horses, any two of them 1st and 2nd in any order. Three horses is 6 bets; four is 12.
• Tricast / trifecta: 1st, 2nd and 3rd in order. A combination tricast on four horses is 4 × 3 × 2 = 24 bets.
• Superfecta (US): the first four in order. A box of five horses is 5 × 4 × 3 × 2 = 120 bets.

The number of bets multiplies your stake. A £1 combination tricast on four horses costs £24.

Starting price vs early price

A bet can be taken at a fixed price (the odds when you bet, sometimes called the early or board price) or at starting price (SP), the official price when the race starts.

In Britain, the SP is overseen by the Starting Price Regulatory Commission (SPRC). The SP used to come only from the on-course market. When racing went behind closed doors in June 2020 it began to be formed from off-course bookmakers' prices, and in March 2021 the SPRC decided to keep that approach after on-course bookmakers returned, citing the on-course market's share of only 1.4% of betting on racing. Taking a fixed price locks in your odds; taking SP means you get whatever the market says at the off, which can be longer or shorter.

Rule 4 deductions

If a horse is withdrawn after you have bet at a fixed price, the remaining horses' chances improve. Rule 4, part of the Tattersalls rules on betting, compensates the bookmaker by deducting an amount from each pound of your winnings, based on the non-runner's price.

Selected rows from Horse Racing Ireland's published scale, which follows Tattersalls Rule 4(c):

Odds-on non-runners bring larger deductions. The Racing Post reports deductions ranging up to 90p in the pound for a non-runner at 1/9 or shorter; HRI's scale caps the total at 75c in the euro when two or more horses are withdrawn.

Example. £10 to win at 6/1. A 3/1 shot is withdrawn, so a 25p deduction applies. Winnings of £60 are cut by 25%, to £45. You get back £55 instead of £70.

In July 2018, the Racing Post reported, the Gambling Commission found that a bookmaker's trader had deliberately shortened a horse's price to maximise Rule 4 deductions, and said it would continue to monitor the situation.

Dead heats

When two or more horses tie for a paying position, your stake is divided by the number tied and the reduced stake is paid at full odds. Betfair's exchange rules give the example of a stake of 300 at 4.0 in a three-way dead heat for first: the stake is reduced to 100, which returns 400.

Example. £10 to win at 6/1 in a two-way dead heat. Half your stake, £5, is paid at 6/1 and returns £35; the other £5 is lost. Profit £25 instead of £60. Bookmakers' own rules govern settlement, so check them.

Mistakes to avoid

• Forgetting each-way doubles the stake.
• Betting each-way on short prices. A place can still mean a loss.
• Ignoring the place terms. 1/4 versus 1/5, and three versus four places, change the value.
• Underestimating combination costs. Exotic bets multiply quickly.

Where to bet

See our UK betting site listings, New Jersey sportsbook listings and the sports betting markets hub. For fractional odds, read how to read betting odds.