Betting on horse racing
Betting on horse racing or horse betting commonly occurs at many horse races. It started in the UK in the early 1600s during the reign of King James I. Gamblers can stake money on the final placement of the horses taking part in a race. Gambling on horses is, however, prohibited at some racetracks. For example, because of a law passed in 1951, betting is illegal in Springdale Race Course, home of the nationally renowned Toronto-Dominion Bank (TD Bank) Carolina Cup and Colonial Cup Steeplechase in Camden, South Carolina. Where gambling is allowed, most tracks  offer parimutuel betting where gamblers' money is pooled and shared proportionally among the winners once a deduction has been made from the pool. Parimutuel betting also provides purse money to participants and a considerable amount of tax revenue, with over $100 billion being wagered annually in 53 countries. In some countries – notably the UK, Ireland, and Australia – an alternative and more popular facility is provided by bookmakers who effectively make a market in odds. This allows the gambler to 'lock in' odds on a horse at a particular time (known as 'taking the price' in the UK). Types of  bets. In North American racing, the three most common ways to bet money are to "win", to "place", and to "show". A bet to "win", sometimes called a "straight" bet, means staking money on the horse, and if it comes in first place, the bet is a winner. In a bet to "place", you are betting on your horse to finish either first or second. A bet to "show" wins if the horse finishes first, second or third. Since it is much easier to select a horse to finish first, second, or third than it is to select a horse  just for first, the show payoffs will be much lower on average than win payoffs. If there are a small number of horses in the race, "show" or "place" bets may not be offered (or if bets have already been made, they are cancelled and the wagered amounts refunded). In Europe, Australia, and Asia, betting to "place" is different since the number of "payout places" varies depending on the size of the field that takes part in the race. For example, in a race with seven or less runners in the UK, only the first two finishers would be considered  winning bets with most bookmakers. Three places are paid for eight or more runners, whilst a handicap race with 16 runners or more will see the first four places being classed as "placed". (A "show" bet in the North American sense does not exist in these locations.) The term "each-way" (E/W) bet is used everywhere but North America, and has a different meaning depending on the location. An "each-way" bet sees the total bet being split in two, with half being placed on the win, and half on the place. Bettors receive a payout if the horse  either wins, and/or is placed based on the place criteria as stated above. The full odds are paid if the horse wins, (plus the place portion), with a quarter or a fifth of the odds (depending on the race-type and the number of runners) if only the place section of the bet is successful. In the UK some bookmakers will pay for the first five (some independent firms have even paid the first six) for a place on the Grand National. This additional concession is offered because of the large number of runners in the race (maximum 40). Occasionally  other handicap races with large fields (numbers of runners) receive the same treatment from various bookmakers, especially if they are sponsoring the race. The rough equivalent of the "each-way" in North America is the "across the board" ("win/place/show") or "win/place" bet, where equal bets on a horse are made to "win", "place", and "show" (or just "win" and "place"). Each portion is treated by the totalizator as a separate bet, so an "across-the-board" bet is merely a convenience for bettors and parimutuel clerks. For instance, if a $2 across-the-board bet (total  outlay of $6) were staked on a horse which finished second, paying $4.20 to place and $3.00 to show, the bettor would receive $7.20 on what is essentially a $6 wager. In addition to straight wagers, "exotic" wagers offer bettors an opportunity to incorporate the placement of different horses in one or multiple races. The two broad types of exotic wagers are horizontal and vertical. Horizontal exotic wagers are bets on multiple horses in one particular race, while vertical exotic wagers involve predicting results across multiple races. Both have specific options for which bets are  available and are detailed below. In the most basic horizontal wager, an "exacta", the bettor selects the first and second place horses in the exact order. Picking the first three finishers in exact order is called a "trifecta" and a "superfecta" refers to the specific finishing order of the top four horses. Boxing is a tactic that increases the odds of winning an exotic wager by removing the need to choose the exact order. A "quinella", which boxes an "exacta" (allowing the first two finishers to come in any order and still win), is the basic box, but boxing can  be applied to the "trifecta" and "superfecta" as well. A "wheel" is a bet on a single horse is to finish in a specific position, with multiple horses finishing ahead and/or behind it. In a sense, a win bet can be thought of as a specific type of "wheel" bet. Vertical bets are spread over different races. A "daily double" is an exotic wager placed on the winner of two consecutive races. Picking the winner of three, four, five or six straight races is referred to as a "pick-3", "pick-4", "pick-5" and "pick-6" respectively. Betting exchanges. In addition to traditional  betting with a bookmaker, punters (bettors) are able to both back and lay money on an online betting exchange. Punters who lay the odds are in effect acting as a bookmaker. The odds of a horse are set by the market conditions of the betting exchange which is dictated to by the activity of the members. United States. In the United States, the states with the largest pools are California, New York, Kentucky, Florida, Maryland and Illinois in no particular order. Betting on horse racing in the United States varies from state to state. By the late 19th century over  300 tracks were in operation in the country but those opposed to gambling caused the banning of bookmakers and horse racing at the beginning of the next century. In 1908 pari-mutuel (tote) betting was introduced, helping the industry to prosper and that has continued to be the case to the present day. Pari-mutuel betting is currently legal in 32 US states. Due to new legislation horse race betting in the US could change significantly in the near future. The legal market handle on horse racing in the United States in 2018 was $11.26 billion while experts predict  the illegal sports betting market could be anywhere from $80 billion to $150 billion annually. Kentucky Derby. Run on the first Saturday in May the most famous horse race in the United States, the Kentucky Derby, takes place at Churchill Downs and is known as ‘The Run For The Roses.’ The one mile two furlong contest dates back to 1875. $149.9 million was wagered on the race in 2019, beating the previous record amount of $139.2 set 12 months earlier. $24.6 million of that total was gambled online. Hong Kong. Hong Kong generates the largest  horse racing revenue in the world and is home to some of the largest horse betting circles including the Hong Kong Jockey Club founded in 1884. In 2009, Hong Kong generated an average US$12.7 million in gambling turnover per race 6 times larger than its closest rival France at US$2 million while the United States only generated $250,000. Betting on horse racing is ingrained in local culture and is seen as an investment. During the 2014-2015 racing season the Hong Kong Jockey Club attracted about HK$138.8 million (US$17.86 million) per race more that any other  track in the world. The revenue the club generate from various wagers makes it the largest taxpayer for the government. Hong Kong Jockey Club broke its own record during the 2016-2017 season with a turnover of HK$216.5 billion and paid the government HK$21.7 billion in duty and profits tax, an all-time high. Australia. A government survey in 2015 found that nearly one million Australians (5.6% of Australian adults) gambled on dog or horse racing in Australia. Most were men aged between 30 and 64 who had a typical yearly expenditure of $1,300 on race betting. Nationally, typical  annual race-betting expenditure amounted to roughly $1.27 billion. Horse race betting in New South Wales (NSW) is conducted by bookmakers (at race meetings and via telephone) and Tabcorp (tote betting at racecourses and through various retail outlets including the internet). In 2014 it was estimated that $300 million alone was bet on Australia’s most famous race - the Melbourne Cup. United Kingdom. Betting on horse racing in the UK is wide and varied. Unlike most other countries where the pari-mutuel system is in operation the UK’s version - the Tote - accounts for only a small percentage  (in the region of 5%) of the total betting turnover. Between April 2017 and March 2018 off-course horse racing betting turnover in Great Britain amounted to £4.3 billion. The majority of the money wagered on horse racing in the UK is with bookmakers, either in betting shops or online. In 2018 there were 8.5 thousand betting shops in Great Britain. This figure is expected to decrease significantly in 2019 when government restrictions on Fixed Odds Betting Terminals (FOBT’s) comes into force.