Horse racing odds are calculated by bookmakers. Most of the bookmakers undergo the process of calculating the odds.
While some aspects of calculating odds can be done with the help of machines and software, other needs human experts.
The odds depend on various factors. Bookmakers have to take all these factors into consideration while calculating the odds.
For most popular race events, the bookmakers invest a lot of money for calculating odds. It can be a time-consuming process.
There are many bookies that still follow the traditional process of calculating odds.
How to Calculate Odds?
Odds directly affect the profit and loss, so the calculation needs to be on point. There is much software available in the market, which helps bookies to calculate the odds.
Apart from that, bookies also approach trained experts to calculate the odds. These experts need to observe each and every horse very closely while they are training or racing.
By checking all the factors, they come up with odds for different horses. There are some people who are of the utmost importance in the process.
As a bookie, you need to approach these people for insight,
- Gallops Watcher: These are the people who watch the horse in the stable. They give appropriate feedback about the horse and field type.
- Experts: These are experts who cover all the other factors. They keep an eye on the horse to know their behaviour and their chances of winning.
- Private Handicappers: These are people who have expert knowledge about horse betting.
The expert will collect all the data and give feedback about the horse and the track to the bookie.
After the bookie gets all the data, they weight down all the options and give ranks to the field.
Apart from these factors, the bookie needs to do more research. They need to know how people are going to behave and place their bets.
When it is a big race, they consider many other factors like,
- Horse: They will get information about the horses in the race. They will collect and analyze all the past data to come up with the current ranking.
- Jockey: They will also analyze all the data about the jockey. They play a very important role in horse racing. Their current rank, past record, as well as experience, matters a lot.
- Race Record: The bookie will also collect all the race records. This statistical data is very important to calculate horse racing odds.
After collecting all the data, the bookie needs to compile it and add it in the software. The software uses all the data to come up with a price. It will generate price for all the horses.
Apart from this, the bookie will also add a margin to the current price to make sure they are not facing any losses. This step is very important. It prevents them from losses.
After the margin, the bookie finally comes up with odds for all the horses in the race.
This is how horse racing odds are calculated. Bookies need to take care of all the factors while doing so.