How to read odds like 5-2 and 9-5
North American racetracks show odds as two numbers separated by a dash. The first number is what you win. The second is what you bet. So 5-2 means "win 5 for every 2 bet", and 9-5 means "win 9 for every 5 bet". A single number such as 8 on the tote board means 8-1.
Lower odds mean the betting public thinks the horse is more likely to win. The horse with the lowest odds is called the favourite. Odds below even money, such as 1-2, mean you win less than you bet.
What a $2 bet pays
Most tracks quote payouts for a $2 bet. The payout includes your $2 back.
| Odds | Profit on $2 | Total $2 payout | Implied chance |
|---|---|---|---|
| 1-2 | $1.00 | $3.00 | 66.7% |
| even (1-1) | $2.00 | $4.00 | 50.0% |
| 9-5 | $3.60 | $5.60 | 35.7% |
| 5-2 | $5.00 | $7.00 | 28.6% |
| 4-1 | $8.00 | $10.00 | 20.0% |
| 10-1 | $20.00 | $22.00 | 9.1% |
| 30-1 | $60.00 | $62.00 | 3.2% |
Actual payouts are rounded down slightly by the track, a practice called breakage.
How to turn odds into a percentage
For odds written as A-B, the implied chance of winning is B ÷ (A + B).
- 4-1 → 1 ÷ 5 = 20 percent
- 5-2 → 2 ÷ 7 = 28.6 percent
- 9-5 → 5 ÷ 14 = 35.7 percent
Add up the implied chances of every horse in a race and you will get more than 100 percent. The extra is the track's cut, explained below. To compare the market with a model fairly, StableBet scales the market's percentages so they add to 100.
What is the morning line?
The morning line is the odds printed in the program before betting opens. It is set by the track's line maker as a forecast of how the public will bet. It is not a rating of the horse and it does not affect payouts. Once betting opens, the live odds on the tote board take over.
Your payout is set by the final odds when the race starts, not the odds when you placed your bet.
That is how pari-mutuel betting works. All bets go into a shared pool, so the odds keep moving as money comes in. A horse at 5-1 ten minutes before the race can go off at 3-1. StableBet labels every odds display as live, snapshot or stale for exactly this reason.
What is takeout?
Takeout is the share of each betting pool the track keeps before paying winners. It covers purses, the track's costs and taxes. Rates vary by track and bet type. They are typically around 15 to 20 percent for win, place and show, and higher for exotic bets. Takeout is why the implied chances in a race add up to more than 100 percent, and why betting on horse racing loses money on average.
Why a 20% chance still loses most races
A horse with a 20 percent chance is expected to win about 20 races out of 100. It is also expected to lose about 80. Losing runs of 10 or more in a row are normal. Try it below.
Each square is one race. Blue squares are wins.
Frequently asked questions
What does 5-2 mean in horse racing?
5-2 means you win $5 for every $2 you bet, plus your stake back. A $2 bet at 5-2 returns $7.00. The implied chance of winning is 2 ÷ 7, about 28.6 percent.
Is the morning line the real odds?
No. The morning line is a forecast printed before betting opens. The real odds are set by the betting pool and are final only when the race starts.
How do I convert horse racing odds to a percentage?
For odds written A-B, divide B by A plus B. For example 4-1 is 1 ÷ 5, which is 20 percent. For 9-5 it is 5 ÷ 14, about 35.7 percent.
Why do the percentages add up to more than 100?
Because the track keeps a share of every pool, called takeout. The odds are calculated after takeout, so the implied chances of all horses add up to more than 100 percent.