In horse racing and other sports, there are two main ways to place bets: fixed odds and tote pool betting. Both offer different advantages and disadvantages, and understanding the difference can help you make smarter betting decisions.
Fixed Odds Betting
Fixed odds betting is the most traditional and widely used method.
With fixed odds, the sports betting odds are set when you place your bet. These odds stay the same regardless of any changes before the event starts. For example, if you back a horse at 5/1, your potential return is based on those odds, even if they shorten later – unless you’re using Best Odds Guaranteed.
To understand fixed odds betting in more depth, visit the Guides section of this site.
Pros
- Straightforward: Fixed odds are easier to understand, especially for new bettors.
- Predictable returns: You know exactly how much you can win or lose when placing the bet. This helps with bankroll management and planning your strategy.
- Better for long shots: Since the odds don’t shift based on betting volume, fixed odds can offer higher payouts on outsiders compared to tote betting.
Cons
- Lower payouts on favourites: Bookmakers often price favourites conservatively, which can lead to lower returns than tote bets.
- No changes after betting: Once your bet is placed, the odds are locked in – even if they become less favourable or more generous later on.
Tote Pool Betting
Tote pool betting, also known as pari-mutuel betting, works differently. All bets on a race go into a shared pool, and payouts are calculated after the race ends. Winners split the pool – minus a commission taken by the operator.
Unlike fixed odds, tote odds change depending on how much money is bet on each horse. The more people back a horse, the smaller the share each winner receives. If a horse is unpopular, the odds (and payout) can end up much higher – but only if that horse wins.
To estimate tote payouts, divide the post-deduction pool by the total amount bet on the winning selection. For example, if the final pool is £10,000 and £2,500 was bet on the winner, each £1 stake returns £4.00 (10,000 ÷ 2,500) – equivalent to 3/1.
Pros
- Potentially higher payouts: In large pools with a few winners, the returns can be significant – especially for less popular selections.
- Dynamic odds: Tote odds reflect real-time betting behaviour, which may offer value on runners overlooked by the crowd.
- Favourites can pay well: Sometimes, when betting is spread across the field, even favourites can return higher payouts than expected.
Cons
- Unclear returns: You won’t know your exact payout until after the race. This makes planning bets trickier.
- Fluctuating value: Since odds shift with every bet, it’s harder to predict whether you’re getting good value.
- Risk for long shots: If your outsider doesn’t attract enough bets, your payout might be underwhelming despite the risk.
Which Method Should You Choose?
Each method has its merits, and the right choice depends on your personal preferences.
Most professional bettors lean toward fixed odds because of the predictability and control they offer. Knowing your returns in advance allows for better risk management. However, some bettors enjoy the chance of a bigger win through tote pools – particularly in events with large betting volumes.
Even if you use tote betting mainly for enjoyment, it’s helpful to understand how both systems work so you can make informed choices that fit your goals and risk tolerance.
Conclusion
Choosing between fixed odds and tote betting depends on what you value most: clarity or opportunity. Fixed odds give you control, consistency, and the ability to plan – while tote betting offers dynamic odds that can reward sharp thinking or lucky picks.
Here are the key takeaways:
- Fixed odds offer clear, locked-in returns and are easier for strategic planning.
- Tote odds fluctuate based on where others place their money – meaning less predictability, but also the chance for bigger surprises.
- Fixed odds tend to favour long shots; tote betting can sometimes offer better payouts on favourites.
- Professional bettors usually prefer fixed odds; casual bettors may enjoy the uncertainty and excitement of the tote.
Both systems can be used effectively – it all comes down to how you like to bet.
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