How to profit from horse racing extra place offers
In addition to the myriad of matched betting offers, horse racing extra place offers can yield some good profit.
Horse racing extra place offers
Bookmakers offer incentives to retain customer loyalty. A good example is to pay extra places on horse racing each-way bets. Matched bettors can use the extra place offer to make a profit.
Take a 20-runner horse race, which typically pays out on 1st, 2nd, 3rd and 4th places each-way. An extra place offer would pay out on the 5th place too.
Each-way betting is detailed in the beginner horse racing guide.
An each-way bet consists of one bet stake split in to two halves:
1). one half of your stake is to to win the race,
2). the other half to finish in the top X places.
The place part of your each-way bet is paid out at a fraction of the win odds.
Bookmakers offer 1/4 or 1/5 the odds a place depending on the number of runners and the type of race.
For example, a bookie offers 1/4 the odds each way.
Your horse is 33/1 (34.00).
A £10 each-way bet is £20 total stake:
∗ £10 to win at 33/1 (34.00) and
• £10 to place at 8.25/1 (9.25).
Extra place offers explained
The bookmaker is paying an extra place – they pay out on 5 places instead of 4. The betting exchange is still paying out on 4 places.
a). Place an each-way bet on a horse at the bookmaker.
b). Place two lay bets on your horse at the exchange: 1). lay to win in the “Winner” market. 2). Secondly, lay the place part in the “To Place” market.
If your horse finishes 5th, you lose the win bet at the bookmaker, but win your place bet at the bookmaker. However, both of your “to win” and “to place” lay bets win at the exchange.
If your horse does not finish 5th there will be a small qualifying loss.
Clearly, this back, lay and hope strategy has big profit potential.
Alternatively, it may be possible to use the arb on the win part to offset the qualifying loss on the place part.
Take an example for a £10 each-way bet:
∗ Your horse is 33/1 (34.00) to back at the bookie
• and 32.00 lay odds at the exchange. Therefore, lay £10.63 (at 2% commission) for £0.42 guaranteed profit on the win part.
The place part is 9.25/9.40, a £9.78 lay (2% commission) gives minus £0.42 if your horse fails to place or plus £0.35 if your horse finishes in the places.
If your horse does finish in the extra place, you win at the bookmaker and the exchange.
Calculate place odds
When laying an each-way bet at the exchange, you need to place two separate lay bets.
The first lay is on the horse to win and another lay bet on the horse to place.
To work out the lay odds for the place market:
1). Take the decimal odds and subtract 1.
2). Divide this figure by 4 (if the each-way terms state 1/4 odds, or divide by 5 if 1/5 odds terms)
3). Add 1
If your horse is 20/1 (21.00 decimal):
a). 21.00 minus 1 equals 20.00
b). 20.00 divided by 4 equals 5.00
c). Finally add 1, which equals place odds of 6.00.
Then lay the place part at odds of 6.00.
Your horse needs to finish in the extra place to make a profit on extra place offers. This means that you may wait a while to trigger an extra place.
There is profit to be made on extra places, your profit is limited by stake size.
It may be worth slightly underlaying each-way bets when looking for the extra place.