How is this done?

Question

if you are betting on a horse that has the odds of 5-2 and alot of people bet on that horse that won, then where do they get all the money to pay 5 dollars for every 2 dollars bet. Do they get in debt?

Answer 1

so many people probably loose so I doubt they would be in any debt.

Answer 2

The same place they get the money to biuld multi million dollar casinos.....losers

Answer 3

Because other people bet on the other horses and do not win. In the long run they make a whole lot more money than they lose.

Math Wise 10 horses every race only 1 winner so 10 winners for every 90 losers.

Answer 4

From the losers who bet on the other horses.

If there is too much money on one horse the odds will change to get people to start betting on other horses and to discourage any more betting on that horse.

Answer 5

they make their money back from that horse. It's the same theory as roulette: the payout is less than the total chance to win. In roulette, there are 36 numbers, but the payout is 1:28. They pocket the extra 8 points.

If there are 10 horses running, the proper payout, for everyone to be even is 1:10. If some horses pay out less than that, like 1:2, or 2:3, the casino makes money.