How the house makes money at the horse track?

Question

A friend explained in theory one time the formula of how the house makes money at the track. Can anyone explain how that works and how that affects the odds? What is the best way to bet at the horse races? Exacta, Trifecta?

Answer 1

there is no theory...they just take 15-22% off the top.

Answer 2

Maybe you can get the concession to sell hotdogs.  Lots of people say they make money betting on horses.  Some even write books about it.  The track and state taxes take about 17 or 18% off the top of the betting pool.  You may be a real smart character, but don't suppose that makes you any better at picking horses than the cigar-chomping guys with pot bellies.  The only reliable winning bet comes along seldom and pays nickles and pennies.  It's an odds-on favorite.  That's a horse that's so highly favored that it pays off less than one to one.  For instance if it wins, you get your two dollars back plus a dollar and a half you won.