Understanding the way in which horse race betting odds work is not as hard as you would think. Horse racing odds have always been worked out on a handicapped basis, this means that if a certain horse wins several times, the odds will be lower.
For instance, if a new horse is introduced into the racing world and has hardly any experience in the field, the odds may be quite high. But if after just a few races it shows great promise and wins every race, the odds will drop at quite a rate.
The bookmaker or sports book will set the odds for any horse based on facts regarding previous wins, injury or any kind of relative information which could influence the outcome.
The odds in theory are simple to understand, if the horse has odds of 2-1 and you place your bet to win, you will receive twice your original bet and stake. So a bet of $100 will see a return of $300 on a regular bet.
Decimal odds are slightly different but just as easy to understand. If you are placing a bet on a horse which has odds of 5-1 and your stake is $100, your return would be $510. If the odds were showing at 1-2 then you would get $120 back and so forth.
The odds will vary for every horse in every race and this depends on how well the season is going, or how it placed in its last race. Most sports books use various forms for placing wagers and will give you the chance to select your own preference. All you need to decide is which one would be best for you. Just remember to study the odds very carefully and don’t always go for the favourite, anything can happen in a race and it usually does.