{"id":34350,"date":"2023-01-02T17:31:25","date_gmt":"2023-01-02T23:31:25","guid":{"rendered":"https:\/\/www.casino.org\/blog\/?p=34350"},"modified":"2022-12-16T06:09:15","modified_gmt":"2022-12-16T12:09:15","slug":"takeout-rates","status":"publish","type":"post","link":"https:\/\/www.casino.org\/blog\/takeout-rates\/","title":{"rendered":"Why Horse Bettors Need To Know About Takeout Rates"},"content":{"rendered":"\n

If you bet on horse racing<\/a>, there may be one essential thing you are overlooking in your betting strategy – takeout rates.<\/p>\n\n\n\n

Many bettors don’t know what takeout rates are or how they affect winnings, so we\u2019ve put this guide together that explains everything you need to know.<\/p>\n\n\n\n

What Are Takeout Rates?<\/h2>\n\n\n\n

In short, takeout rates are pre-payout taxes applied by a horse racing track on every bet made at a race meeting.<\/p>\n\n\n\n

For example, if you make a $100 bet on a horse to win a race at odds of +1,000, and the horse wins, your profit before the takeout rate is applied would be $1,000.<\/p>\n\n\n\n

But, before you decide how you’re going to spend your $1,000 profit, you have to factor in the cut the track will take<\/strong>.<\/p>\n\n\n\n

For our example, let’s say the track has a 10% takeout rate on single bets; in this case, your winnings would be $900.<\/p>\n\n\n\n

Racetracks have to apply takeout rates to survive. It’s an essential part of the sport.<\/p>\n\n\n\n

Owners, trainers, and jockeys<\/a> take their wages via takeout rates, and the tracks fund maintenance and upkeep of their grounds with their percentage.<\/p>\n\n\n\n

However, this doesn’t make it any less impactful on your bottom line.<\/p>\n\n\n\n

Additionally, the 10% we used in the example above would be on the extreme low end of the rates and some tracks can charge as much as 25%<\/strong>, depending on the type of bet.<\/p>\n\n\n\n

How Do Takeout Rates Affect Payouts?<\/h2>\n\n\n\n
\"Person
Image: Phil Murphy\/Flickr<\/em><\/figcaption><\/figure>\n\n\n\n

Takeout rates affect payouts in a pretty severe way, especially if the track can take as much as a quarter of your winnings.<\/p>\n\n\n\n

If you’re working with a specific betting strategy and on a set budget (which you should), it’s important to factor this in.<\/p>\n\n\n\n

If you don’t know the takeout rate at a particular track, it’s essential to try and find out<\/strong>. Good luck, though – often, tracks try to keep this information as quiet as possible to avoid turning bettors off.<\/p>\n\n\n\n

It definitely won’t be advertised at the cashier’s desk when you go to make a bet. The best way to find takeout rates is to do your own research. Often, the information is available online with a bit of digging.<\/p>\n\n\n\n

Takeout rates also vary depending on the type of bet <\/strong>you’re making.<\/p>\n\n\n\n

For example, a single bet (straight bet) on a horse to win will have a different rate to a pick 4 (exotic bet) where you have to combine four winning bets into one.<\/p>\n\n\n\n

In general, the bigger the odds of the bet, the higher the takeout rate<\/strong> will be.<\/p>\n\n\n\n

There are some exceptions, though.<\/p>\n\n\n\n

Some tracks encourage bettors to combine multiple bets, offering discounted takeout rates for pick 5 or 6s, making their potential payouts much larger, but of course, there is much less chance of them landing.   <\/p>\n\n\n\n

An example would be when in 2017, Kentucky Downs racetrack in Franklin, Kentucky, applied a rate of 16% on bets to win, place, or show (all single bets).<\/p>\n\n\n\n

But for Pick 4 and Pick 5 bets, the track only had a takeout rate of 14%, giving a small but welcome bonus for successful bettors.<\/p>\n\n\n\n

?<\/strong> How To Bet On A Live Horse Race<\/strong><\/a><\/p>\n\n\n\n

Takeout Rates Compared State By State<\/h2>\n\n\n\n
\"Horses
Image: Taylor Sondgeroth\/Unsplash<\/em><\/figcaption><\/figure>\n\n\n\n

Takeout rates are generally set at state level and are consistent for each racetrack within a particular state.<\/p>\n\n\n\n

Also, note that some states have different rates depending on whether the race involves Thoroughbred horses<\/strong>.<\/p>\n\n\n\n

Arizona<\/strong><\/h3>\n\n\n\n