Betting Theory and

Practice
Presented by XYZ
Tuesday 21
st
May 2014
Introduction
What are we going to cover?
Probability
Odds
Calculating the odds
Bookmaking
Types of bets
Some basic rules and terminology
Feel free to ask questions at any time.
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Basic probability
What is probability?
the likelihood or chance that something is the case or will happen.
a measure of how likely it is that some event will occur; a number
expressing the ratio of favourable cases to the whole number of
cases possible.
How is probability expressed?
As a number between 0 and 1, where 0 indicates that an outcome is
certain not to happen and 1 indicates that an outcome is certain to
happen.
As a percentage, where 0% indicates that an outcome is certain not
to happen and 100% indicates that an outcome is certain to happen.
As a ratio, with the relative likelihood of two outcomes (will happen
and will not happen) expressed as either side of a ratio. If
something is equally likely to happen as not to happen the ratio is
1:1.
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Probability and odds
Bookmaking is based on probability theory.
The bookmaker offers odds (or prices) to the customer.
The odds tell the customer how much money they will win in
relation to how much they stake if the outcome that they
predict happens.
These odds are simply an expression of probability.
There are two main types of odds display;
Fractions
Decimals
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Fractional odds
In the UK the most common representation of odds is as a fraction.
The fraction describes the amount that the bookmaker will pay as
winnings as a comparison to the size of the stake placed by the
customer.
The value of the fractions numerator represents the amount the
bookmaker wagers against the fractions denominator, which
represents the amount wagered by the customer.
If you take the example of 6/4; the bookmaker wagers 6 units
against each 4 units wagered by the customer. Whoever wins the
bets keeps both sides of the wager.
Although it is called a fraction it is actually nothing more than a ratio
describing the probability the bookmaker believes is attached to the
outcome. You would describe 6/4 as six to four.
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Fractional odds working out the
probability
Fractional odds are a simple ratio expression of probability.
The left-hand side of the ratio is always the likelihood of an
outcome not happening.
The right-hand side of the ratio is always the likelihood of an
outcome happening.
Each outcome has to either happen or not happen. So the
combined likelihood (i.e. the chance of one of the two
outcomes happening) has to be 100%.
The sum of the two probabilities is 100% so to work out the
percentage chance of an outcome happening divide the right-
hand side of the ratio by the sum of both sides and then
multiply by 100.
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Fractional odds working out the
probability
Take the example of 6/4.
For each 4 units wagered by the customer, the bookmaker wagers
6 units.
The customer is wagering that the outcome will happen, the
bookmaker is wagering that it will not.
The percentage chance that this outcome will happen is
(4 / (6+4)) x 100 = 40%
The percentage chance that this outcome will not happen is
(6 / (6+4)) x 100 = 60%
What percentage chance of the outcome happening do these
odds represent:
4/1
2/1
1/3

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Fractional odds working out your
returns
The amount you win is determined by the ratio.
You also get your original stake back if you win.
So, if you bet 40 at 6/4 and your bet wins you get 60 from
the bookmaker and your original 40 stake back too.
The mathematical formula is simply numerator divided by
denominator, plus one, multiplied by your stake.
So, in the above example:
((6 / 4) + 1) x 40 = 100
How much do the following bets return if they win:
80 @ 7/4
5 @ 1/5
25 @ 9/5
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Decimal odds
The most popular form of odds representation outside of the UK is
decimal odds.
Decimal odds are simply a number shown to two decimal places.
Calculating your return using decimal odds is very simple. You just
multiply your stake by the odds and that is your total return
(including your stake).
Calculating the percentage probability from decimal odds is also
very simple. You just divide 100 by the odds.
For example, consider odds of 2.50.
If you stake 40 at 2.50 your total returns are 100 (40 x 2.50).
The percentage chance represented by 2.50 is;
(100 / 2.50) = 40%
So you can see that 6/4 and 2.50 are simply two ways of
representing the same thing.
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Odds against, even money and
odds on
It is possible to divide odds into three different groups
Odds against
Even money
Odds on
Odds against means that the outcome is less likely to happen than not to
happen. (i.e. <50%)
Even money means that the outcome is equally likely to happen as not to
happen. (i.e. =50%)
Odds on means that the outcome is more likely to happen than not to
happen. (i.e. >50%)
Odds against are any fractional odds where the numerator is larger than the
denominator and any decimal odds greater than 2.00.
Even money is shown as 1/1 or written as evens or evs in fractional odds
and is 2.00 in decimal odds.
Odds against are any fractional odds where the numerator is smaller than
the denominator and any decimal odds less than 2.00.
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The key concepts so far
Take a minute to think back over what weve just discussed.
The amount of money you can win from a bet is determined
by two things;
1. The size of your stake
2. The size of the odds
The odds are a direct representation of the likelihood of that
outcome occurring.
The more likely an event is to happen, the shorter the odds
will be and the less you will win for the money you risk.
The less likely an event is to happen, the longer the odds will
be and the more you will win for the money you risk.
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Long odds or short odds?


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100% 0%
50%
Evens
Odds on Odds against
+ Your bet is
likely to win
-You dont get a high
return on your money
when you win
+ If you win then you
get a very high return
for your money
- Your bet is unlikely
to win
Calculating the odds coin toss
There are lots of events where it is fairly simple to calculate
what the true probability of something happening is.
For example, if you toss a fair coin then heads and tails are
equally likely outcomes.
If you express the number of times you expect to land on
heads compared to the number of times you expect to land on
tails as a ratio it is 1:1.
If you express the number of times you expect to land on
heads as a percentage it is 50%.
If you express the number of times you expect to land on
heads as fractional odds it is Evens (i.e. 1/1).
If you express the number of times you expect to land on
heads as decimal odds it is 2.00.
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Calculating the odds full deck
of cards
Now consider the example of a full deck of cards. (A full deck
of cards has 52 cards. There are four suits (hearts, diamonds,
spades, clubs) each with 13 cards.)
If you have a full deck of cards what is the chance that any one
card drawn at random is a diamond?
If you express the number of times you expect to draw a
diamond from a full deck as a ratio it is 39:13. Both numbers
are divisible by 13 to give you 3:1.
If you express the number of times you expect to draw a
diamond from a full deck as a percentage it is 25%.
If you express the number of times you expect to draw a
diamond from a full deck as fractional odds it is 3/1.
If you express the number of times you expect to draw a
diamond from a full deck as decimal odds it is 4.00.
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Calculating the odds partial
deck of cards
Imagine that the first card you drew at random actually was a
diamond. And that having drawn the card you then discarded
it.
What is the chance that the next card you draw is also a
diamond?
If you express the number of times you expect to draw a
diamond next as a ratio it is 39:12. Both numbers are divisible
by 3 to give you 13:4.
If you express the number of times you expect to draw a
diamond next as a percentage it is 23.53%.
If you express the number of times you expect to draw a
diamond next as fractional odds it is 13/4.
If you express the number of times you expect to draw a
diamond next as decimal odds it is 4.25.
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Definite odds
In the previous examples it was possible to calculate the odds
of an event happening with certainty. This is because all of the
relevant parameters are clearly known.
When tossing a fair coin you know that each toss must result
in either a result of either heads or tales and that both are
equally likely.
When dealing with a full deck of cards you know exactly how
many cards are in the deck, how they are divided between the
four suits and so on.
These are examples where you can be sure what the odds of
an outcome really are.
Casino games are examples of betting events where the odds
are known with certainty.
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Estimated odds
In contrast to situations where all of the relevant parameters
are known there are lots of other types of situations where it
is not possible to know all of the information.
If you do not have access to all of the relevant information it is
not possible to calculate the odds with the same degree of
certainty.
In these circumstances you can only estimate the odds based
on the information available to you.
The quality and quantity of the information available to you
determines how accurately you are able to estimate the odds.
Sporting events are examples of betting events where the
odds are not known with certainty.
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Estimated odds a partial deck
of cards
Imagine a full deck of 52 cards.
Now pick 8 of these cards at random and, without looking at
them, discard them. You are now left with 44 cards.
You know that you started with 13 cards of each suit but you
have no way of knowing how many of each suit you have left.
What is the chance of the next card you pick out being a
diamond?
If all 8 of the cards earlier discarded were diamonds then the
ratio now is 39:5 (11.36%).
If none of the 8 cards earlier discarded were diamonds then
the ratio now is 31:13 (29.55%).
So the true odds of the next card being a diamond could be
anywhere between 11.36% and 29.55%.
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Estimated odds a cricket
match
In the previous example we could see that without all the
relevant information it became much more difficult to
accurately ascertain the likelihood of an outcome happening.
However, certain parameters were known so we at least knew
what the range of possibilities were.
When dealing with sporting events the range of parameters
that determine the probability of each outcome is far less
certain.
As a result it is not possible to estimate odds with the same
degree of certainty as when dealing with the examples we
have already examined.
Take the example of a cricket match between India and
Australia.
List all of the factors that you can think of that affect the
probability of India winning the game.

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Estimated odds India vs
Australia
Factors that affect the odds of India beating Australia:
Technical ability of the Indian players
Fitness of the Indian players
Tactics/coaching of the Indian team
Confidence/morale of the India team
Technical ability of the Australian players
Fitness of the Australian players
Tactics/coaching of the Australian team
Confidence/morale of the Australia team
State of the series
State of the pitch
Weather
Umpiring decisions
Support of the crowd
Luck
etc.

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Estimated odds
You can see from the list on the previous slide that there are
obviously a lot of factors that affect the likelihood of India
beating Australia in any given match.
You will also notice that these factors are not easily
quantifiable.
For example, you cannot attribute a numerical value to the
technical ability of the India players with anything like the
accuracy that you can attribute a numerical value to the
question of how many cards are in a deck.
It is possible to devise a system of ratings that allows you to
put a numerical value against something like the technical
ability of the India players but it needs to be remembered
that this is still based on subjective judgement rather than
objective fact.
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How do bookmakers create the
odds?
There are a number of key factors that determine how a
bookmaker decides what odds to give each outcome in a
sporting event:
Form of the competitors
Personal opinion of the odds compiler
Information about injury and training
Statistical information about venue, officials, competition, etc.
Positioning of other bookmakers in the market
The expected betting patterns of the customer
Remember one of the key lessons from an earlier slide:
The quality and quantity of the information available to you
determines how accurately you are able to estimate the odds.
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Form
Form in this context essentially means recent
results/performance.
Form is traditionally given great importance by bookmakers
when compiling the odds because it offers a degree of
objectivity.
Form tells you how a team/player/horse/etc. is performing in
competition and so helps you rate the team/player/horse/etc.
in comparison to rivals.
Form is subject to interpretation. To read the form properly
you need to know all of the relevant information (e.g. was a
key player injured) and you need to attribute the correct
degree of weight to each bit of information.
Past form is not a definitive indicator of future performance.
The ability of a team/player/horse/etc. changes over time as
conditions change. And all teams/players/horses/etc. go
through ups and downs. Just because a team lost last week
does not mean it will lose next week.
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Personal opinion
The people who set the odds for a bookmaker are specialist odds
compilers.
Typically they specialise in one or two sports only and concentrate
on those sports. For example, there is a team of odds compilers at
"The Company" who concentrate solely on football.
These odds compilers watch as many events live or on television as
they possibly can and are constantly researching their area.
As a result they have a good deal of experience and expertise in
their particular area. This tends to mean they have strong personal
opinions about teams/players/horses/etc.
Their judgements are often good but like any human being they are
fallible and can find it difficult to revise an opinion once it is formed.
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Information about conditions
There are lots of different types of information that can be
useful to an odds compiler. For example:
Injury news
News of morale inside the camp
The state of the ground
The weather forecast
The odds compiler needs to know at least as much as the
customer who is going to bet with you. If the customer has
more information than the bookmaker then the customer has
a major advantage.
Information is useless unless you understand its significance.
You need to be able to attach the correct weight to each bit of
information when judging its importance.
The more information the better.
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Statistical and historical
information
Statistical analysis of historical trends helps the odds compiler
evaluate both the strengths of individual
teams/players/horses/etc. and also the framework of the
competition in which they compete.
Statistical analysis of the recent form of a particular
team/player/horse/etc. can help the odds compiler get a
better understanding of how or why the competitor is
under/over-achieving.
Statistical analysis of the wider competition can help the odds
compiler use the information they already have about the
teams/players/horses/etc. involved in an event.
For example, the odds compiler needs to know how much
home advantage is worth when determining the odds for a
football match. This varies from country to country and from
competition to competition. You need to examine the whole
competition to determine this value.
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Position in the market
The bookmaking industry in the UK is very competitive. There
are lots of companies offering odds on most sports events.
Each bookmaker has to be aware of the position of other
bookmakers on each market.
If you take a view on any given selection that is out of line
with other bookmakers you need to make sure you are not
too far out of line.
There are two reasons for this:
1. You do not want to create an arbitrage opportunity.
2. You do not want to sell at a lower price than you have to.

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Expected betting patterns
From experience of how customers behave it is possible to
predict which selections will be popular with customers.
For example, well supported teams always attract more bets
than less well supported teams.
Another example is patriotic betting. If England are playing at
football a UK bookmaker can be certain that the majority of
bets placed by customers in England will be on England to win.
Knowing in advance that business will not be evenly
distributed across the possible outcomes enables the
bookmaker to account for this in advance and alter the odds
accordingly.
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How does the bookmaker
make money?
How does a bookmaker make money from all this knowledge
of probability and odds compilation?
We have already seen that odds are just representations of
probability. And we have seen how you determine the odds of
any individual outcome happening. We now need to consider
the relationship of individual outcomes to each other.
Take the example of a football match between Chelsea and
Liverpool. The two teams have similar levels of form, ability,
fitness, motivation, etc. Chelsea are the home team so have a
significant but not overwhelming advantage as a result. Take a
couple of minutes to think about the percentage chance you
think each of the following three outcomes has of occurring:
Chelsea win
The match is a draw
Liverpool win
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The total percentage of a
market
Whatever percentage chance you gave each of the three
outcomes in the previous example the important thing to look
at to understand how a bookmaker makes money is the
aggregate total of the three percentages.
In this particular example it is certain that one of the three
outcomes will happen. The match must be won by either
Chelsea or Liverpool or it must be a draw. There is no other
possibility.
So, the percentage chance of one of these outcomes occurring
is exactly 100%. That is certain.
It follows that the sum total of the three individual percentage
chances must be 100%.
If you think back to the earlier examples of tossing coins and
picking cards from a deck you will notice that the sum total of
percentages always added up to 100%. (Heads = 50%, Tails =
50%. Diamonds = 25%, Hearts = 25%, Spades = 25%, Clubs =
25%. And so on.)
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Over-round
The true odds of each selection in a normal market add up to 100%.
If you bet to 100% you are offering a completely fair book.
It is impossible to make money as a bookmaker if you offer true odds on
selections.
To make money the bookmaker has to offer odds that overstate the
likelihood of the outcome occurring.
Remember that the more likely an outcome is to happen the shorter the
odds on that outcome are.
So, overstating the likelihood of an outcome means you offer shorter odds.
If you overstate the likelihood of an outcome happening that means that
the odds you offer equate to a greater percentage.
You need to do this on each outcome in the market.
This leads to the aggregate percentage of all the outcomes in the market
being greater than 100%.
This is the over-round.
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Offering fair odds
It is obvious that the true odds of a coin toss landing on heads is 50%. And
similarly that the odds of landing on tails is also 50%.
So the true odds in a coin toss are:
Evs Heads (50%)
Evs Tails (50%)
If you offer Evs on both possibilities then over a large enough sample of coin
tosses you would expect to break even.
Similarly, the true odds of picking a card of any given suit from a full deck
are obviously 25%.
So the true odds on picking a card of any particular suit are:
3/1 Hearts (25%)
3/1 Diamonds (25%)
3/1 Spades (25%)
3/1 Clubs(25%)
If you offer 3/1 on all four possibilities then over a period of time you would
expect to break even.
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Offering odds with a margin
When you are bookmaking you overstate the likelihood of each outcome.
This leads to the aggregate of percentage representations being greater
than 100.
So, if you are offering odds on a coin toss you might offer:
10/11 Heads (52.38%)
10/11 Tails (52.38%)
Similarly, if you are offering odds on a particular suit being drawn at random
from a full deck you might offer:
11/4 Hearts (26.67%)
11/4 Diamonds (26.67%)
11/4 Spades (26.67%)
11/4 Clubs (26.67%)
In both cases this would mean that over a long enough series of events the
bookmaker should be marginally up and the bettor should be marginally
down.
This is the basis of bookmaking.
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What do "The Company" bet on?
"The Company" offer betting on all major sporting events.
The majority of bets are placed on horse racing or football.
Sports such as tennis, cricket, basketball, golf, etc. are also very
popular.
Betting in-play has become a huge part of our business on sports.
"The Company" also offer betting on political events (the US
Presidential Election for example) and non-sporting competitions
(Big Brother for example).
As long as an event has clear rules, will provide a clear result and
cannot be manipulated easily then it is possible to offer odds on it.
As well as sports betting "The Company" also offers Casino games,
fixed-odds games and player-to-player betting games such as Poker
and Backgammon.
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Different types of bets singles
The simplest and most basic form of bet is the single.
The vast majority of bets that "The Company" take online are
singles.
A single bet is simply a bet that one thing will happen.
Here are some examples of single bets:
India to beat Australia in the 3
rd
Test
Chelsea to beat Liverpool on Sunday
Manchester United to win the Champions League
Roger Federer to win Wimbledon 2009
Cloudy Lane to win the 2009 Grand National
Lance Armstrong to win the 2009 Tour de France
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Different types of bets
multiples
You can combine several different bets together to form a multiple or
accumulator.
If you place an accumulator all of the selections you have chosen have to
win for the bet to win. If any of them lose then the whole bet loses.
Winnings from the first leg of the accumulator go on to the second leg of
the accumulator. Winnings from the second leg go on to the third leg go on
to the third leg. And so on.
It is possible to win a lot of money from a small initial stake on an
accumulator bet because you are using your winnings to bet with.
It is much harder to have a winning bet because you have to chose several
things that will happen.
Some examples of multiple bets are:
Chelsea to beat Liverpool AND Arsenal to beat West Ham AND Manchester United
to beat Everton
Brazil to win the 2010 World Cup AND Tiger Woods to win the 2010 US Masters.
An accumulator with 2 selections is called a double. If there are 3
selections it is called a treble. If there are 4 selections or more it is called a
4-fold, 5-fold, etc.
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Different types of bets
combinations
One of the problems with a straight accumulator is that if you get one
selection wrong your whole bet is a loser.
Some customers like to put their selections into combination bets to make it
more likely that they get some winnings back.
A combination bet puts the selections you have chosen into a number of
different combinations of multiple and single bets.
For example, if you chose four selections you might choose a Lucky15 bet.
A Lucky15 organises your four selections into 15 different bets (or lines);
4 singles (A, B, C and D)
6 doubles (AB, AC, AD, BC, BD and CD)
4 trebles (ABC, ABD, ACD and BCD)
1 4-fold (ABCD)
Some other popular combination bets are Patent (3 selections, 7 lines),
Trixie (3 selections, 4 lines), Yankee (4 selections, 11 lines), Lucky31 (5
selections, 31 lines) and so on.
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Different types of bets Each
Way
All the examples we have looked at so far have been simple win bets. In all
of those cases the customer was betting that a particular team or player or
horse would win a match or a tournament or a race.
On some events bookmakers also offer Each Way (EW) betting.
An EW bet is actually two bets in one. Half of the stake is on the selection in
question to win the event. The other half is on the selection to place.
What constitutes a place is described by the EW terms.
The EW terms also describe how much of the odds apply to the place part
of the bet.
So, EW terms of 1/4 1,2,3 mean that the place part of the bet pays 1/4 the
odds on the first three places.
EW betting is only offered on events where there are at least five possible
outcomes and where the selections will finish in a defined order. A horse
race is a good example of an event where EW betting would be available.
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Different types of bets Each
Way
The easiest way to understand EW betting is by looking at an example.
Take a horse race that has eight horses taking part. The EW terms for this
race will be 1/5 1,2,3. So, for the place part you get 1/5 the odds if your
horse finishes either first, second or third.
If you bet 10 EW on a horse that is 10/1 your total stake is 20 (10 on the
win part, 10 on the place part).
The win part is straightforward. If your horse wins your 10 at 10/1 wins
and you get 110 (100 winnings and 10 original stake) for that part of the
bet. If your horse doesnt win you get nothing.
The place part is at 1/5 the odds. 1/5 of 10/1 is 10/5 (i.e. 2/1).
So, if your horse finishes first, second or third then you get 30 (20
winnings and 10 original stake) for the place part of the bet. If your horse
finishes lower than third you get nothing.
So, if your horse finishes first you get 140 (110 from the win part, 30
from the place part). If your horse finishes second or third you get 30 (0
from the win part, 30 from the place part). If your horse finishes fourth or
worse you get nothing.

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Different types of bets
handicaps
If a sporting contest appears unequal beforehand the bookmaker can try
and make betting on the event more interesting by applying a handicap to
the event.
Take the example of a basketball match between the Boston Celtics and the
New Jersey Nets. Boston are considered much the better team and are very
likely to win the game. A bookmaker will say that for handicap betting they
are giving New Jersey a 9.5 point head start.
So, betting on the handicap market would be:
5/6 Boston Celtics (-9.5pts)
5/6 New Jersey Nets (+9.5pts)
Whatever the actual score of the match is you adjust the score by 9.5 points
in New Jerseys favour to determine the result of this betting event.
So, if the final score is 108-100 to Boston then New Jersey win on the
handicap (108-109.5). If the final score is 110-100 to Boston then Boston
win on the handicap (110-109.5).
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Different types of bets Asian
Handicaps
One particular type of bet that is very popular in the Far East is known as an
Asian Handicap bet.
Asian Handicap betting is typically offered on football matches.
An Asian Handicap can be either whole ball or half ball.
An example of a whole ball is:
Everton +1
Manchester United -1
An example of a half ball is:
West Ham +0.5
Arsenal -0.5
The difference between the two is that where the handicap is whole ball
you can get a tie. Using the above example, if Manchester United win the
game 2-1 then the score on the handicap is 2-2. In this circumstance neither
option has won and neither has lost. All stakes are simply returned.
When the handicap is a half ball it is impossible to have a tie. Using the
above example, if Arsenal win 2-1 then the score on the handicap is 2-1.5.
So there is always a clear winner.
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Different types of bets Asian
Handicaps
The biggest difference between Asian Handicap betting and regular
handicap betting is the use of split-ball handicaps.
This means a handicap such as 0.5/1.0 is offered.
This means that your bet is effectively split into two parts; half your bet is at
a handicap of 0.5 and the other half is at a handicap of 1.0.
So, take the following example:
Tottenham -0.5/-1.0
Bolton +0.5/+1.0
If you bet 20 on Tottenham at this handicap and the match is a draw or
Bolton win you lose your bet. If Tottenham win the game by one goal half
your bet wins and the other half is returned. If Tottenham win by more than
one goal both parts of your bet win.
If you bet 20 on Bolton at this handicap and the match is a draw or Bolton
win you win all of your bet. If Tottenham win the game by one goal half your
bet loses and the other half is returned. If Tottenham win by more than one
goal both parts of your bet lose.

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Different types of bets
Over/Under
Another popular type of bet is the over/under bet.
The bookmaker sets an expected value for a particular
occurrence and the customer simply bets higher or lower.
A typical example of an over/under market would be how
many runs will India score in the first innings of the 3
rd
Test:
Over 300.5
Under 300.5
You can have an over/under bet on almost anything where the
result of the event is defined in simple numerical terms.
Goal Line is a particular type of over/under bet that is offered
on football matches. It follows the same whole ball, half ball
and split-ball principles as Asian Handicap betting.
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Different types of bets non-
runners
In many events it is clearly determined beforehand exactly
what all the possible outcomes are. In a football match for
example you know which two teams will be playing. It is not
possible that one of them might not take part.
In other events, however, it is not certain that all the
participants will actually take part. For example, in a horse
race any of the horses can be withdrawn before the start of
the event.
If an expected participant does not take part in an event it is
called a non-runner.
In most cases bets on a non-runner are considered void bets
and the stakes are simply returned to the customer. (The
exception to this rule is Ante Post events.)
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Rule 4s
If there is a non-runner in a horse race it can have a large
effect on the bookmakers margins.
Take, for example, an eight runner race where the bookmaker
is betting to 115%. If there is 5/4 favourite in the race that is
declared a non-runner then all bets on that horse are void and
stakes are returned to customers.
However, the bets on all the other horses still stand. And with
a 5/4 horse removed from the field the bookmaker margin on
bets taken on the remaining seven horses is only 70.56%.
It is therefore necessary to take a deduction from winnings on
bets taken at the prices available before the 5/4 horse was
withdrawn.
This is known as a Rule 4 deduction (named after Tattersalls
Rule 4(c) ).
The deduction in this particular example would be 40p in the
pound.

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Dead heats
Most events that bookmakers offer bets on end up having a
clear winner. However, some events end with a split result.
For example, you can have a horse race where two horses
finish exactly level and it is impossible to judge which has
finished first and which has finished second.
In such cases the bookmaker cannot simply say that there are
two winners and pay bets on both horses as a winner.
The solution in these cases is to say that both horses have half
won and half lost. Therefore if you have bet on one of the
horses half your bet is a winner and half your bet is a loser.
So, if you bet 10 at 5/1 and your horse finishes joint first then
you will receive a total of 30 back (5 wins at 5/1, 5 loses).
If three selections dead heat then 1/3 of your bet wins and
2/3 loses.
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Related contingencies
Bookmakers often take bets on several different events or
markets which are related to each other in some way.
If the relationship is too direct then the bookmaker cannot
allow accumulators consisting of the two events.
Think of the example of Chelsea playing Barcelona in the
Champions League semi-final. Chelsea may be 5/6 to beat
Barcelona. At the same time Chelsea are 5/2 to win the
Champions League.
You cannot allow a double on Chelsea to beat Barcelona AND
Chelsea to win the Champions League.
This is a related contingency.
The easiest way to think about this it to think whether the
bookmaker would be willing to offer the same odds on the
second outcome if they knew that the first outcome had
already happened. In the above example the answer to that
question is clearly no.
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Ante Post
Ante Post literally means before the post. It is a term that derives from
horse racing. (At the start of a horse race the horses line up at the post.)
In bookmaking Ante Post means betting on an event some way in advance
of the event happening. This can mean any type of sporting event but is
most usually used in relation to horse racing and greyhound racing.
The most significant difference between Ante Post betting and other betting
(sometimes called day of event betting) is that there are two different
rules for Ante Post bets:
If you bet on a horse or dog Ante Post and that horse or dog does not run in the
race you do not get your money back. Your bet is a loser.
If other horses or dogs get withdrawn from the race your bet is not subject to a
Rule 4.
Generally speaking credit customers do not pay for Ante Post bets until the
point at which the bet is settled. All other types of customer account pay for
Ante Post bets at the time the bet is struck in exactly the same way as they
would for any other type of bet.
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Any questions?