One of the most important factors that attract gamblers to bet in horse races is the payouts. Payouts are determined by odds and the final horse racing results.

To understand how the payout system works, we must understand how to read the odds’ ratio. If the odds for a certain horse are 4:2 it means that for every two dollars, you will get four in return. Payout ratios can range from as low as 1:9 to as high as 10:1. The minimum betting amount for each race is $2.

Breakage is a form of calculation where the final payout is rounded down by a range of 1 to 20 cents. Here’s an example. Let’s say $500 is the amount of winning bets while $200 is the amount bet on the winning horse. 15% of the total amount is collected by the track, leaving around $595. Next, $200 is subtracted from the amount to pay the winning horse bettors which leaves us with $395.

This final value is then divided by $200 and multiplied by the minimum bet which will be around turn out to be around $3.95. After breakage, winners will get $3.90 together with the original wager ( in this case, $2) which totals to $5.90.