A Beginner's Guide to Betting on Horse Racing in the US
Horse racing is one of America's oldest spectator sports — and one of its most exciting betting markets. Whether you're heading to Churchill Downs for the Kentucky Derby or placing a wager from home, understanding how betting on horse racing works is the first step toward making the most of your experience. This guide breaks down everything you need to know, from how pari-mutuel odds work to the different types of bets available at US tracks.
What Is Pari-Mutuel Betting?
Unlike sports betting, where you wager against a bookmaker who sets fixed odds, horse racing in the US uses a system called pari-mutuel betting. In this model, all wagers are pooled together, a percentage is deducted for the track and taxes (known as the "takeout"), and the remaining pot is divided among winning ticket holders.
This means your odds — and therefore your potential payout — aren't fixed when you place your bet. They fluctuate right up until the race goes off, based on how much money the crowd collectively places on each horse. The more money wagered on a horse, the lower its odds become, and vice versa.
How to Read Horse Racing Odds
US horse racing odds are displayed as a ratio — for example, 5/1 ("five to one"). This means for every $1 you bet, you'd win $5 in profit (plus your original stake returned). A horse showing 2/5 is the heavy favourite — you'd need to bet $5 to win just $2.
Because odds shift in pari-mutuel pools, the number displayed on the board is an approximation. Your final payout is calculated after the race closes.
Types of Bets When Betting on Horse Racing
There are two main categories of horse racing bets: straight bets and exotic bets.
Straight Bets
The simplest way to start betting on horse racing is with a straight bet:
Win — your horse must finish first.
Place — your horse must finish first or second.
Show — your horse must finish first, second, or third.
Place and Show bets offer safer returns but lower payouts than a Win bet. Many beginners start here to get a feel for the sport.
Exotic Bets
Exotic bets offer higher potential payouts by asking you to predict the outcome of multiple horses or multiple races:
Exacta — pick the first and second place horses in exact order.
Trifecta — predict first, second, and third in order.
Superfecta — all four positions in order. High risk, high reward.
Daily Double / Pick 3, 4, 5, 6 — predict the winners of consecutive races.
Where Can You Bet on Horse Racing in the US?
Betting on horse racing is legal in the majority of US states, both on-track and via licensed online advance deposit wagering (ADW) platforms. Established US racetracks include Churchill Downs (Kentucky), Belmont Park (New York), Santa Anita Park (California), and Saratoga Race Course (New York). All offer on-site pari-mutuel wagering.
Online bettors can wager through licensed ADW providers, such as MyWInners, which pool bets into the same pari-mutuel pools as the track itself. Always verify that any platform you use holds the appropriate state licensing.
Quick Tips for Betting on Horse Racing as a Beginner
Study the form guide — a horse's recent race history, jockey, and trainer record all matter.
Understand track conditions — a horse may perform very differently on a wet track versus a firm one.
Start with straight bets before moving to exotics.
Set a budget before you bet and stick to it.
Watch the tote board — late money flowing onto a horse can signal insider confidence.
Ready to Get Started?
Betting on horse racing combines sport, strategy, and the thrill of live action like nothing else. Once you understand how pari-mutuel pools work and the range of wagers on offer, every race day becomes a more engaging experience. Whether you're backing the favourite at Saratoga or hunting an each-way longshot, start smart, bet responsibly, and enjoy the ride.
Place bets at app.mywinners.com, or download the MyWinners: Racing & Sports app on iOS here or Android here.
Frequently Asked Questions
Is betting on horse racing legal in the United States?
Yes. Horse racing is one of the oldest legal forms of gambling in the US, permitted in the vast majority of states. The Interstate Horseracing Act of 1978 also allows licensed advance deposit wagering (ADW) platforms to operate online, meaning you can legally place pari-mutuel bets from home in many states. Always check the regulations specific to your state, as a small number still restrict online wagering.
What is the minimum bet for horse racing?
At most US racetracks and online ADW platforms, the minimum straight bet (Win, Place, or Show) is $2. Exotic bets such as the Exacta or Trifecta can often be placed for as little as $0.50 or $1, depending on the track and the bet type. Some multi-race exotics like the Pick 4 or Pick 6 can also have low base units, making it possible to play combinations without a large outlay.
How do pari-mutuel odds work and when are they finalised?
In pari-mutuel betting, all money wagered on a race is pooled together. After the track's takeout percentage is removed (typically between 15% and 25%), the remainder is shared among winning ticket holders. Odds are not fixed — they shift continuously as more bets are placed, right up until the gates open. The odds shown on the tote board in the lead-up to a race are approximations. Your final payout is based on the closing pool, calculated after the race has started.
What is the easiest bet for a beginner when betting on horse racing?
The Win bet is the simplest: pick one horse to finish first. However, many beginners prefer a Place or Show bet, as your horse only needs to finish in the top two or top three respectively — giving you more margin for error. A "Win/Place/Show" or "across the board" bet covers all three outcomes on the same horse, though it costs three times the base stake. Once you're comfortable reading a form guide and understanding odds, exotic bets like the Exacta open up considerably bigger returns.
Can I bet on horse racing online in the US?
Yes, in most US states you can bet on horse racing online through licensed advance deposit wagering platforms. These services connect you to the same pari-mutuel pools as the racetrack itself, so your odds and payouts are identical to on-track wagers. Popular US tracks including Churchill Downs, Saratoga, Santa Anita, and Belmont Park can all be wagered on remotely via these platforms. Always verify that the platform you use holds a valid ADW licence and operates legally in your state before depositing.
