All races are run at a racetrack that holds licensed race meets. Each state has a racing commission that ensures that all the rules of racing are being followed. Due to the fact that people are betting on the outcome of horse races, the racing commissions place utmost importance on protecting and policing the integrity of the sport.

Before You Bet: Handicapping the Races

Don't let anyone fool you into believing that betting on horse racing is sheer luck. In any gambling game, having lady luck on your side is always better. But when it comes to handicapping, brains and intellect win out much more often than luck.

Handicapping is the art and science of picking winners. You can do it several ways, though I prefer to stay away from using hat pins, coins, darts, and rabbit feet to pick my horses.

Information is power, and the best place to get horse racing information is from the Daily Racing Form (DRF). The DRF is the industry's main daily newspaper that provides independent editorial copy along with the best past performances of all horses racing on any given day. If you're at the racetrack, you'll notice all of the serious handicappers have the DRF. Most have studied the races the night before, marking their notes in the newspaper.

REMEMBER

Handicapping is a little complex and isn't something you can pick up overnight. If you're new to the game, head to Chapters 11 and 12 for the basics. Then, when you're comfortable, you can try some advanced handicapping techniques, which I discuss in Chapter 16.

Eliminating losers and developing the race shape

TIP

When I look at the day's races in the Daily Racing Form, the first thing I don't do when going through the races is try and pick a winner. Instead, I go through and eliminate the losers. The losers are those horses I think are too slow or overmatched to win that day. Getting the losers out of the way creates a smaller pool from which to pick winners, making your job a lot easier.

Next, I mark in the DRF past performances, which is a horse's racing resume, the horses into three categories: speedballs, pace horses, and dead late closers. Each label is self-explanatory. Speedballs prefer to take the early lead. Their early position in their past races show mostly "1s," meaning they're in the lead. Pace horses stalk the early pace. Their past performances show more "3s" and "4s," indicating their running position. The dead late closers lag far back early in the race, so depending on the field size, they're in the back half of the group.

I like to look for the race shape, which is how I project the race will be run. For example, if multiple speedball horses are racing, the early pace will be fast, and a speed duel will hurt their chances of winning. Conversely, if only one speed horse is racing, I call this the best bet in horse racing - lone speed.

I take into account the overall class of each horse. The classier horses win races when facing lesser rivals. Class is something measured in the heart and head of the horse, but at least you can make good judgments by the class of the races they've run in previously. For example, cheap claiming horses exhibit less class than allowance or stakes horses. I cover the class and classification of horse races in Chapter 2.

Taking all factors into account

Winning a horse race is never a one man show. Granted, there's no replacing a fast, talented racehorse. But when you're handicapping the races, the contributions of the jockey, trainer, and owner, and even the reputation of the stable's skilled help - such as grooms and exercise riders - must be taken into account. (See Chapters 7 and 8 for more.)

Publications like the Daily Racing Form and the racetrack program print statistics that are paramount to your handicapping. Both publish statistics on the jockeys and trainers. Equipment changes are also duly noted, such as whether the horse has blinkers on or off, is using Lasix medication, is wearing front bandages, and so on. When a trainer makes a change, it's usually a positive sign. At minimum, the change is a signal that the trainer is trying something different to win a race. (Chapter 10 is all about equipment changes.)

In addition, the program and Daily Racing Form list the track condition (such as fast, good, muddy, and sloppy for the main track and firm, good, soft, and yielding for the turf course) from race to race so you can see whether a horse runs its best effort on a certain type of dirt or turf surface. (See Chapter 9 for more on track surfaces and conditions.)

Playing the System: Parimutuel Wagering

Parimutuel wagering is the accepted betting system in the United States. The French invented it, and the word parimutuel means betting amongst ourselves. In parimutuel wagering, the money wagered goes into a common pool. After deductions are taken out to cover racing expenses and taxes to the state, the remaining money gets paid out to the winners.

The win odds on each horse, which reflect the probable win payoff, are determined by the betting public. The more money bet on a horse, the lower its odds. Horses called long shots have higher odds because very little money has been bet on them to win. A tote board on the infield and displayed on television monitors all around the racetrack relays the odds and potential payoffs for parimutuel wagers.

REMEMBER

One of the key points to keep in mind about parimutuel wagering is that you're betting against all the other horseplayers. This type of wagering is opposite of casino gaming where, in most cases, you're playing against the casino or the house, as it's also known.

I cover all the nuts and bolts of parimutuel racing in Chapter 3.

Betting with Success

Horse race betting is much different than sports betting, where the odds on a ballgame are 11/10, meaning you bet $11 to win $10. The common bet denomination in horse racing is $2 and has been that way forever. Although it's true that if you bet more money, you can win more money, professional horseplayers follow a different credo: "Bet a little to win a lot."

In horse racing, betting overlays is the key to success. Overlays are horses going off at odds higher than their real chances of winning the race. For example, professional horseplayers put their own morning line on each race to determine overlays. When a horse they like is going off at much higher odds (say 10/1) than it deserves (say 5/1), they bet. I don't expect newcomers to make their own morning line, which is made by a handicapper who is an employee of the racetrack and reflects how that person thinks the public will bet the race. A simple way to find overlays is to trust the oddsmaker at major racetracks. Then bet on horses that are going off at odds much higher than their morning line.

Starting off simply

Although you can make all kinds of wagers, newcomers should focus on straight bets, meaning to win, place, and show. You collect on a win bet when your horse finishes first, on a place bet if it runs first or second, and on a show bet when your horse ends up first, second, or third. The concept is a simple one to grasp. Bet one horse to do one good thing for you to win money.

TIP

Chapter 4 is all about placing straight bets, and I even provide step-by-step instructions for calling out a wager if you've never done such a thing before.

Even if you've placed a few bets before, until you get more sophisticated with your handicapping, I wouldn't go much further than wagering on daily doubles (linking the winners of two consecutive races), exactas, and quinellas. In an exacta, you're betting on the first two finishers in exact order. In a quinella, you're betting on the first two finishers in either order (see Chapter 15). In betting, you can use multiple horses, giving yourself a chance to cash a sizeable ticket and still keeping your investment small.

Going for the score

Exotic wagers (see Chapter 15) give you a chance to win a sizeable amount of money with a small investment. A $100 bankroll doesn't give you much leeway to shoot for the moon, meaning to win thousands upon thousands of dollars. I recommend initially trying to win your first prime bet, meaning a good-sized bet on a horse you really like, and/or a couple action bets, which are small wagers just to have a rooting interest. After you win a couple of these bets, you've built up your bankroll and can raise the ante some.

With a small bankroll, the main exotic plays are the quinella, exacta, and daily double. You can also use the trifecta and pick 3 because they can be bet with a $1 unit, but I wouldn't get into the superfecta and pick 4 unless your bankroll has greatly increased. The last two plays produce high rewards but are also very high risk wagers.

REMEMBER

The key to going for a score, meaning to win a lot of money, isn't necessarily betting a lot of money. The key is beating the favorite in the particular bet you're making. For example, in the daily double, you beat two 6/5 odds race favorites. Your winning horses may pay $10 or $12 win prices. In a natural parlay, meaning to take your winnings from one horse and bet it all on the next horse, the $2 daily double returns anywhere between $50 and $72. But because you beat both race favorites, the daily double payoff is overlaid. If the overlay is 25 percent more, the daily double payoff could range between $62 and $90 - not bad for a small investment.

The ultimate wager in going for the score is the pick 6. Because it covers six races and is a $2 minimum unit, the cost can be prohibitive. For example, using just two horses in each of the six legs of the pick 6 is a $128 ticket.

TIP

My recommendation is to bet the pick 4. Using two horses in each of the four legs of the pick 4 costs $16 because it's a $1 unit. That price is much more affordable than the pick 6. Beat a couple race favorites in the pick 4, and you could take home a nice windfall for the night.

Managing your money

Planning your wagers and managing your bankroll with discipline are vital contributors to winning at the horse races - so much so that Chapter 13 (no pun intended) is devoted to that topic. An assumption I made when writing this book is that you have a $100 betting bankroll for the entire day. No ATM withdrawals allowed! If you tap out, no chasing good money after bad.

I like to plan my overall day of gambling so I have some idea how many races interest me. For example, if I really like three horses to win, I must discipline myself to use a percentage of my bankroll on those three horses and races first. If I don't, then I'm using up my bankroll on races I have a lesser opinion about.

I also need to consider how many bets I'd like to make - including action bets, which may be spur of the moment bets on big overlay horses. If I decide I want to make eight bets, here's what I do: I divide eight into my $100 bankroll, which is $12.50 per bet. I factor an additional 50 percent for my three prime wagers ($6.25), which adds up to $18.75. Round down the change, and I bet $18 on each of my three prime plays, totaling $54. I'm left with $46 for the other five plays.

I still have enough flexibility to make a small unplanned action bet or two. In a worse case scenario - meaning all my action bets lose - I've budgeted 54 percent of my bankroll on my strongest plays. If I win one of three, I have a chance to break even. If I win two of three, I make money for the day. If I win all three prime bets, consider it a lady luck afternoon. I also have flexibility if any of my action bets win. For example, say I win $40 on an action bet. Rather than reinvest it all on more action bets, I can grow my prime plays by another $6 each. Now I'm betting $24 each and $72 total on my prime bets. I'm maximizing my chances of winning for the day. This is just one example. An action bet that comes in may win you only $10, or it may win you $90. I want you to understand the principle that some of the profits should be reinvested into your prime plays, which are your strongest plays, and not just frittered away on unplanned action bets.

WARNING!

Only increase the size of your wagers when you're winning. Too often, increasing the size of bets when you're losing is human nature. It's called chasing your losses and is considered poor money management discipline. Chasing your losses can turn a bad betting day into a horrendous day. It's generally not a good idea.

Deciding Where to Bet

For the longest time, the racetrack was the only place to go for betting on the horses. Life was much simpler when simulcasting, meaning betting on the races away from the racetrack, didn't exist. Now you have hundreds of places to bet horse races, including out of your own home.

The racetrack

The racetrack is the most traditional place to bet on horse racing, and in my opinion, it's the most fun option - at least in terms of the overall experience. In Chapter 5, I take you by the hand and guide you everywhere there's something interesting to see at the racetrack. I give you an idea of how much everything costs, where to sit, where to eat, where to see the horses up close, and so on. I'd be honored if you take me (my book, that is) along for your very first visit to the racetrack.

OTBs and Las Vegas

OTBs (off-track betting parlors) are popular places to bet on horse racing. The good ones offer a lot of amenities, such as fine dining, cushy chairs, plenty of work space, betting terminals at your seat, and so on.

TIP

Here's how to find the OTBs near you: Go to the National Thoroughbred Racing Association Web site (ntra.com). Click on "Track & Simulcast Facility Locator," and type in your complete address. The search is powered by Mapquest, so you can request text directions or print out a map. If you need additional information, telephone the facility before going there.

(Continues...)

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Excerpted from Belting on Horse Racing For Dummies by Richard Eng Excerpted by permission.
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
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