There are three main wager types in horse racing: win, place, and show. A win bet means that if the horse wins the race, you win your bet. To win a place bet, the horse needs to finish 2nd or 3rd. Finally, to profit from a show bet, the horse can place either 1st, 2nd, or 3rd. Because show bets are the most likely to happen, the odds are always less favorable than a win or place bet.