There are plenty of options when it comes to making a bet. Yet horse racing has some very peculiar traits, from understanding form to the rules of designated races. To make it more complex, different parts of the world use varied ways to calculate odds. Below, we discuss how to understand the types of horse racing odds.

Fractional

Odds for horse racing are given in different ways, depending on where you place the bet. They come in three types, which are known as fractional, decimal, and American.

Fractional is used in the UK primarily. If you bet on horse racing with Paddy Power, you will notice that odds are given as two numbers. For example, in the upcoming Royal Ascot Gold Cup, Eldar Eldarov and Coltrane are joint favorites at 3/1. You need to know these numbers when you place a bet and check the Royal Ascot results to see how much you have won.

The first number is how much you stand to win if you bet the second value. In the above example, it means you would win £3 for every £1 you have placed. This would double if you were to bet more, so placing £2 on the winner would mean a payout of £6, and so on.

This does not include your stake, which you would also get back in addition to any winnings. So if you place £2 on a horse at 3/1, you would get £6 back along with the £2 stake, making £8 in total.

Decimal Odds

The decimal odds are popular when gambling in Europe but can also be found in Canada. They are arguably the easiest to understand, as they just feature a decimal point. For example, you may find that if you back a horse to win it is 2.3. This is the amount you will get for every unit wagered. All you do is multiply your stake by the decimal point.

Let’s say you’re looking at the Kentucky Derby, and a horse has odds of 2.3. You decide to wager $5. This is 5 x 2.3, which comes out at 11.5.

The difference between this and fractional odds is that here, your stake is already included in the decimal odds. After you win the $11.5, you will not get an extra $5 stake returned. It is in with the winnings.

American Odds

American odds can seem the hardest to understand, but they are rooted in logic. Often known as moneyline odds, they help show the advantage or disadvantages of certain outcomes. You will see the odds indicated with a – symbol, and the proceeding number is the amount you need to bet to win $100.

However, if a team or horse has a + sign next to the odds, they are the underdogs. For every amount won, the number is how much you win for every $100 staked.

As an example, you are betting on a race. Horse A is – 200, while Horse B is + 300. Horse A is the favorite to win, and you need to bet $100 on it to win $200 back. With Horse B, bet $100, and you will win $300. Like European odds, your stake is handed back as an additional amount. It is not included in the odds calculation itself.