Lesson 5: Horseracing

Lesson 5: Horseracing

Class simulations Part A

Lesson goal:

To determine how gaming venues and betting agencies make money from players.

Through activities, simulations and discussions, you will learn that gaming venues

and betting agencies:

• design products to make profits from players

• make money because there are more losses and less winnings over the

long term.

Through Part A of this lesson we are going to do

the following:

Tune in – background information

Class simulations Part A:

• Sweep with no betting agency – use Melbourne Cup spreadsheet

• Sweep with a betting agency – use Melbourne Cup spreadsheet

We will require the following worksheets:

• Student worksheet 16 The sweep

• Student worksheet 17 The sweep

• Student worksheet 18 The sweep

Sweep with no betting agency – class simulation

24 students

24 ‘prizes’ to be used for bets

No betting agency

Determine the prize distribution for first, second, third and last

(All 24 ‘prizes’ are to be distributed)

Sweep with no betting agency – screenshot of Melbourne

Cup spreadsheet

Sweep with a betting agency – class simulation

24 students

24 ‘prizes’ to be used for bets

A betting agency

Only 12 ‘prizes’ to be distributed

Determine the prize distribution for first, second, third and last

(The betting agency keeps the other 12 ‘prizes’)

Sweep with a betting agency – screenshot of Melbourne

Cup spreadsheet

Worksheet

Worksheet

Worksheet

Key message

The amount paid back to the players is less when a betting agency is involved.

Review your understanding:

1. Explain how a sweep works in your own words.

2. How is a sweep different when a betting agency is involved, from when one is not?

3. Do you agree with the ‘key message’ statement above? Explain your answer.

4. What example would you use to explain the meaning of this statement to

someone else?

Lesson 5: A Day At The Races

Class simulations Part B

Lesson goal:

To determine who wins from betting at the races.

Through activities, simulations and discussions, you will learn that:

• horseracing betting agencies design their products to maximise their profits at the

expense of players

• the higher the potential payout, the lower the chances of winning.

Through Part B of this lesson we are going to do

the following:

Tune in – background information

Class simulations Part B:

• Using a die with equal payouts

• Using the ‘Day at the races’ spreadsheet with equal payouts

• Using the ‘Day at the races’ spreadsheet with unequal payouts

We will require the following worksheets

• Student record sheet: A day at the races

• Student worksheet 19 A day at the races

• Student worksheet 20 A day at the races

• Student worksheet 21 A day at the races

Simulation 1

Using a die with

equal payouts

Simulation 2

Using the

‘A day at the races’

spreadsheet with

equal payouts

Screenshot of ‘A day at the races’ spreadsheet with

equal payouts

Simulation 2

Using the

‘A day at the races’

spreadsheet with

unequal payouts

Screenshot of ‘A day at the races’ spreadsheet with

unequal payouts

Worksheet

Worksheet

Worksheet

Key messages• The only party that is guaranteed to make money at the races is the bookmaker,

at the expense of players.

• Higher payouts are matched with lower probabilities of winning.

Review your understanding:

1. Do you agree with the key messages above? Explain your answers.

2. A player is paid $15 by a bookmaker. The likely amount of money the bookmaker

collected from the other players was:

A. less than $15

B. exactly $15

C. more than $15?

3. Explain one other thing you learnt in this lesson.