Kentucky Derby Horse Racing Betting Explained
On Saturday, May 4, one of the United State’s historical sporting events takes place when the 20 best three-year-olds in the world enter the starting gate at Churchill Downs for the Kentucky Derby, a betting delight. Every year, America’s most prestigious horse race turns non-gamblers into full-fledged horseplayers while professional horseplayers wait with baited breadth to take down a life-changing score.
For online bookie agents more familiar with traditional sportsbook wagering: football, basketball, and baseball, Kentucky Derby horse racing betting can be intimidating. Not only can it be intimidating, it can also be downright scary for bookie agents that don’t necessarily understand the ins and outs of running an online racebook.
This blog takes last year’s Kentucky Derby and uses that as a case study to explain Kentucky Derby horse racing betting. Understand Kentucky Derby horse racing betting will help online bookies add their online racebooks as a consistent revenue source.
Unlike other sports in the United States, a horse race goes off almost every day, practically 24/7, somewhere in the world. Through your online racebook, you can offer wagers on races not only that happen in North America, but also in Europe, including the UK, and in Australia. That’s a lot of betting options that you probably didn’t even know you could offer your clients.
By taking a look at Justify’s 2018 Kentucky Derby victory, pay per head agents can develop an understanding of horse racing that should allow them to market their online racebooks. Marketing the online racebook could add a significant revenue stream to their existing sportsbook businesses.
2018 Kentucky Derby: Horse Racing Betting Case Study
The Bob Baffert trained Justify entered the starting gate a solid 5/2 chalk. Baffert had won the Kentucky Derby four previous times, and everyone felt that Justify was indeed the best horse in the race.
Although no horse had won the Kentucky Derby since Apollo in 1882, many felt that Justify was so talented that he could break the curse. It was a muddy, sloppy, racetrack, and even then horseplayers weren’t talked off Justify.
The Baffert runner broke smoothly underneath jockey Mike Smith. Smith put Justify into the race early, sending him up to around 1 to 1 ½ lengths behind front-runner Promises Fulfilled. After that horse started to tire, Smith gave Justify his cue. The Baffert runner easily took the lead and then extended it into the stretch. Although Good Magic, that year’s Blue Grass Stakes winner, made what seemed like a menacing charge, Justify was in no danger of losing.
The Baffert horse paid back $7.80 to win, $6.00 to place, and $4.40 to show. Good Magic, went off at close to 10/1 and paid $9.20 to place, and $6.60 to show. Third place finisher Audible went off at 7/1 and paid $5.80 to show.
All three horses figured to at least hit the board and all three did, which is why the .50 cents trifecta only paid $70.70. However, the superfecta paid $19,618.20 for a $1 wager.
Wait a moment…what? Yep. You read that right. Horseplayers that had last year’s Kentucky Derby superfecta with 3 less than double-digit odds horses finishing in the top 3 slots and the 5/2 favorite winning the race, took home $19,618.20 for a $1 base wager. The reason why is because Instilled Regard, who went off at around 85/1, finished fourth.
That’s the danger with offering equine wagering without a horse racing betting explanation. Now that we know the 2018 Kentucky Derby particulars, let’s get to how pay per head agents can manage 2019 Kentucky Derby race betting. Most of the things below listed, agents can also use for daily online racebook management. They don’t only apply to the Kentucky Derby.
Racebook Management Rule #1 – Don’t offer superfecta wagering
Professional horseplayers won’t wager through your online racebook. Professional horseplayers use one of the American operated racebooks like TVG and BetAmerica. Trust us, you don’t want their business. You don’t want a professional horseplayer making wagers in your online racebook because professional horseplayers are excellent at putting together profitable tickets. They’re called professional horseplayers for a reason.
Casual horseplayers don’t make superfecta bets. Superfectas cost too much to hit. The base is only a $1, but all the various combinations can add up to hundreds of dollars. Because your customers won’t make superfecta wagers, why even offer superfecta wagers? Take the wager off the board for every race at every track. You never know when an Instilled Regard will come up and lead to a massive score.
Racebook Management Rule #2 – Set a total max race bet limit
You probably know all about max betting limits. Using the mass editing tool to set max betting limits makes sense on sportsbook futures. Although it also makes sense on Kentucky Derby futures, it also makes sense to set max betting limits on an entire race.
So, you could say that the most a player can invest in any race is $200. Again, most casual players won’t do that, but if a professional player has a marker with you and doesn’t wish to use cash at the racetrack, they could decide to put $1,000 into a race. Let’s say that $1,000 investment pays back $6,000 or more. Sounds crazy, but if that $1,000 went onto a 6/1 or 10/1 paying trifecta, you could easily be on the hook for thousands of dollars.
Racebook Management Rule #3 – Set a total max won race limit
You’re an individual sportsbook operator who is just now understanding horse racing betting. You might have some knowledge, but you don’t run an online racebook. You run an online sportsbook. If you wish to make money from your online racebook, you most definitely must set a total max won race limit.
What’s a total max won race limit? It’s the total any single player can win on a race. It works hand-in-hand with a per head agents total max race bet limit. Think about it in terms of halves. If the most you’re willing to accept on any race is $200, the total max you should be willing to pay out total on any race is $1,000. If the most you’re willing to accept on any race is only $100, the most you should be willing to pay out should be no more than $500.
This makes sense because unlike your online sportsbook, you can’t lay off money wagered on horse races. Always look to mitigate risk.
Hopefully, this blog has explained Kentucky Derby horse race betting. Use these rules for the May Run for the Roses as well as for every other horse race you offer in your online racebook. One more thing, PayPerHead is offering a $3 for 3-weeks promo. Jump on that by calling a PayPerHead rep at 800-605-4767.