To bet on a horse race, you name the track, the race number, the amount, the bet type and the horse’s program number, in that order. Win, place and show are the simple bets; the exacta, trifecta and superfecta ask for the exact order of two, three or four finishers, and the Pick 3 to Pick 6 ask for the winners of consecutive races.

How horse racing odds and payouts work

Horse racing in North America is pari-mutuel. Every dollar bet on a race goes into a pool for that bet type, the track takes its cut, and what is left is shared among the winning tickets. Your money is up against the other bettors’ money, and the track keeps the same share whoever wins.

The cut is called the takeout, and it pays for purses and running the track. America’s Best Racing puts it at roughly 12% to 25%, depending on the bet. Santa Anita Park’s published menu is a good example of the spread: 15.43% on win, place and show, 22.68% on the exacta, and 23.68% on the trifecta, superfecta, Pick 3, Pick 4 and Pick 6 (menu last updated September 13, 2024).

Because the pool sets the price, the odds move until the gate opens. The more money bet on a horse, the lower its odds. The horse with the most win money on it is the favorite, and the morning line is only the starting odds set by the track handicapper.

Working out a payout

The quick way to read a win price is to multiply the odds by your stake and add the stake back. A $2 win bet on a 10-1 winner returns $22: $20 profit plus the $2 you bet. A $5 bet at 5-1 wins $25, so $30 comes back.

Here is the pool itself, in a simplified example with made-up numbers. Say $10,000 is bet to win on a race and the takeout is 15.43%. That leaves $8,457 to pay out. If $1,000 of the pool was on the winner, each $1 on that horse gets $8.46 back, so a $2 ticket pays about $16.91. Had only $500 been on the winner, the same $2 would pay about $33.83.

That is why a price can shift after you bet. Much of the money on a race often arrives in the last few minutes, and the odds can move a long way in the final minute or two.

Straight bets: win, place and show

These are the three bets on a single horse, and the place to start:

• Win: your horse must finish first.
• Place: your horse must finish first or second.
• Show: your horse must finish first, second or third.
• Across the board: a win, place and show bet on the same horse. It is three bets, so $2 across the board costs $6. If the horse wins you collect all three; second pays place and show; third pays show only.

At Churchill Downs the minimum for each straight bet is $2, the same as at Santa Anita. Churchill Downs also describes an “80/20” split some bettors use: 20% of the stake on the horse to win and 80% on it to place, which gives a return more often while keeping some of the upside of a win.

Exotic bets: exacta, trifecta, superfecta

An exotic is any bet other than win, place or show. These four ask for the finishing order in one race:

• Exacta: the first two finishers, in exact order.
• Trifecta: the first three finishers, in exact order.
• Superfecta: the first four finishers, in exact order.
• Super Hi-5: the first five finishers, in exact order.

Minimums change from track to track. At Churchill Downs the exacta is $2, the trifecta $0.50 and the superfecta $0.10, rising to $1 on Kentucky Oaks and Kentucky Derby days. Santa Anita’s menu has the exacta and trifecta at $1 and the superfecta at $0.10.

Boxes, keys and wheels

A box covers every order of the horses you choose. A two-horse exacta box is two bets, so at $2 each it costs $4. A three-horse trifecta box is six bets, which Churchill Downs prices at $3 for a $0.50 box.

The cost grows fast as you add horses, because each one multiplies the number of orders:

Multiply the count by your base stake for the ticket cost. A five-horse superfecta box at $0.10 is 120 bets, or $12.

A key cuts the count. The key horse is one horse used in several combinations: put it on top of an exacta with four others underneath and that is 4 bets, against 20 for a five-horse box. A wheel uses the key with every possible combination of the other runners; a part wheel uses some of them, not all.

Multi-race bets: the double and the Pick 3 to Pick 6

These ask for the winner of each race in a sequence:

• Daily Double: the winners of two consecutive races.
• Pick 3, Pick 4, Pick 5: the winners of three, four or five consecutive races.
• Pick 6: the winners of six consecutive races.

The longer the sequence, the harder the bet and the bigger the typical payout: a Pick 6 usually pays far more than a Pick 3. At Churchill Downs the Pick 3, Pick 4 and Pick 5 start at $0.50 and the Daily Double at $1. Santa Anita runs its Pick 6 on the last six races for a $2 minimum.

The deepest pools can carry over. At Santa Anita, if no ticket picks all six Pick 6 winners, part of that day’s pool carries over to the next race day, and the whole pool is paid out on a set day of the meet, usually the last. The track’s Pick 5 pools carry over in full when nobody hits all five. A carryover means the next day’s pool starts with money already in it.

Scratches are handled by the track’s rules. A scratched horse is one withdrawn before the race. For the Pick 6 at Santa Anita, a late scratch means the ticket takes your named alternate, or the betting favorite if you did not name one.

Placing the bet

At the track, say it to the teller in this order: track, race number, amount, bet type, program number. Churchill Downs gives the example “Churchill Downs, Race 5, $2 to SHOW on #3.” You can also use a self-service kiosk.

Away from the track, you bet through an online wagering account, which the industry calls advance-deposit wagering. You fund the account, then pick the track, the race, the bet and the horse, the same way as at a window. FanDuel Racing is one of those sites. Setting up the first deposit can take a day or two, so open the account before race day.

Reading a race before you bet

The program’s past performances hold most of what you need in a small block per horse: breeder, owner, trainer and jockey, pedigree, earnings, race record and a line for each recent start.

Three things to check first:

• Speed figures. Churchill Downs points bettors to the Brisnet Speed Figure in the program and suggests averaging a horse’s last three races. Higher is faster: a 108 beats a 78.
• Class. From toughest to easiest, races run stakes, then allowance, then claiming, then maiden. A maiden race is for horses that have not won yet.
• The horse in the paddock. Forward ears and a calm manner are good signs; ears pinned back, heavy sweating or an anxious look are warnings.

Our guides go further on the big days: the Kentucky Derby, run at Churchill Downs, the Preakness Stakes, the Belmont Stakes and the Breeders’ Cup. The 2026 Breeders’ Cup is on October 30 and 31 at Keeneland, and our Breeders’ Cup page carries the latest Classic rankings.

Paid handicapping services sell picks for these races too. Before you pay for one, read our handicapper site reviews, since a service’s price is paid whether the Pick 4 hits or not.