It is pretty straightforward to understand how horse betting odds work. The odds determine how much you win if your bet comes in. A $20 bet on a horse at 2/1 will generate a profit of $40 ($20 x 2). If you get the same bet on at 3/1, the profit jumps to $60 ($20 x 3). Shop around to make sure you get the best odds for every wager you place.