What are 'fractional' odds?

• Traditionally favoured by bookmakers, fractional odds quote the net amount that a punter can win relative to his stake.

• Odds of 4/1 ("four-to-one") would imply that the bettor stands to make a _____ profit on a R100 stake.

• N.B. All winning bets on horse racing are subject to a 6% Betting Tax. E.g. on a winning bet of 400/100 you will receive R400 - (6% of R400) + R100 = R400 - R24 + R100 =

1

R400

R476

1.1 If the odds are 1/4 (read "one-to-four"), how much will the customer win on a R400 stake?

______________________________

1.2 If this is a winning bet, calculate how much the customer will receive back.

_________________________________________________________________________

2

Exercise 1

R100

R100 – R6 (6% tax) + stake R400 = R494

Example 1:• 0.4 is the same as 0.4/1• To get rid of the decimal (.4) we multiply both sides by 10• Then 0.4 x 10/ 1 x 10 =

Example 2:• 0.25 is the same as .25/1• To get rid of the decimal (.25) we multiply both sides by 100 (there are 2

decimal places)• Then 0.25 x 100/ 1 x 100 = 25/100• Simplify 25/100 by dividing both sides by 25• Then 25/100 becomes

3

Remember how to convert the computer odds into fractional odds:

4/10

1/4

Firstly, we convert 5.5 (computer odds) into 11/2 (fractional odds), then this is what you do:

• 5.5 is the same as 5.5/1

• However, we can't use decimal places and so we must get rid of the .5

• Multiply both sides by 10: (5.5 x 10) / (1x10) = 55/10

• which we simplify Well, 55/10 can be simplified by dividing both sides by 5

• (55 divided by 5/10 divided by 5)

• = 11/2 4

Remember how to convert the computer odds into fractional odds:

• Now a punter who wants to spend a R1 000 at odds of 5.5, what will the bet look like?

• Take 5.5/1 and multiply both sides by 1000 = 5500/1000 (this is the bet structure).

• The punter will win R5 500 (plus his/her R1 000 stake back and so they will get R6 500 back).

• If the punter wants to spend R1 000 what will the bet structure be? Yes, of course, 5500/1000 (R5 500/R1 000).

• Spending R1 000 on the horse means that the punter will win R5500 and take home R6 500 (minus betting tax).

5

A punter wants to back Macchiato to win at odds of 5.5:

Or they may ask “How much will I win for a stake of R10?” At 11/2 = R55/R10 = R55.The bet structure is 55/10

• ALWAYS REMEMBER: 55/10

6

Now let us go back to the example of Macchiato:

WHAT THE PUNTER WILL PAY= STAKE

WHAT THE PUNTER WILL WIN= TO WIN

• N.B. All winning bets on horse racing are subject to a 6% Betting Tax.

• E.g. on a winning bet of 400/100 you will receive R400 - (6% of R400) + R100 = R400 - R24 + R100 = R476 (6% of R400 = R24).

7

Winning bets pay a 6% Betting Tax

Exercise 2 (page 3)

• Convert the following computer odds into fractions

a. 0.25 _____________________

b. 0.3 _____________________

c. 1.5 _____________________

e. 2.5 _____________________

f. 5.0 _____________________

8

1/4

3/10

15/10

5/2

5/1

• In South Africa, on the Turfsport system the decimal odds of an outcome are equivalent to the decimal value of the fractional odds but do not include a stake unit of 1.

• Thus even odds 1/1 are quoted in decimal odds as 1 and 2/1 as 2. The 4/1 fractional odds discussed above are quoted as 4, while the 1/4 odds are quoted as 0.25, 11/2 fractional odds are quoted as 5.5.

9

What odds do we see?

Exercise 3 (Page 4)

What is the odds price of the horse for the following bets? Give the fractional odds.

3.1 1000/3000 ______________

3.2 1000/200 ______________

3.3 1000/250 _______________

10

1/3

5/1

4/1