Understanding Takeout Rates Importance for Horse Racing Wagering
Takeout rates in horse racing can significantly influence potential returns on wagers, as they vary depending on both the state where the race is held and the type of bet placed.
In Kansas, takeout rates can reach up to 25% on multiple wagers if authorized by the racing commission. The track takes a cut of winnings to cover expenses, including wages for owners, trainers, and jockeys, and to fund track maintenance and upkeep.
Michigan, for example, imposes an 18% takeout on straight wagers and 25% on exotics for Quarter Horse, Appaloosa, and Arabian races. In contrast, Delaware's takeout rates range from 17% to 25%, depending on the type of wager and race.
Other states, such as Ohio, Iowa, and Indiana, have varying takeout rates for different types of wagers. For instance, Ohio's takeout rates are 17% on straight wagers, up to 28% on multiples, and 25% on exotics. In Iowa, takeout rates range from up to 18% on win-place-show bets to 25% on other wagers.
Takeout rates in Indiana are 18% on straight wagers and 21.5% on exotics. In Colorado, takeout rates are 18.5% on straight wagers and 28% on exotics. In Minnesota, takeout rates are 18% on straight wagers, and 26% on exotics.
New Jersey's takeout rates are 18.75% to 25% on win-place-show, 21% to 30% on exotic wagers for Class B tracks. In New York, takeout rates are 18% on straight wagers, and 22.5% on all other wagers.
Louisiana has a unique takeout structure, with 17% on regular wagering pools, 19% if the average daily handle is less than $300,000, 20% on exactas, daily doubles, quinellas, 26-35% on trifectas.
Nebraska's takeout rates for Harness racing vary based on the daily average. Tracks over $600,000 daily have 17% on straight wagers, 19% on two-horse multiples, and 25% on three-horse multiples.
In some states, takeout rates are lower for specific wagers. For example, Del Mar in California offers special wagers at lower takeouts (15%). Similarly, some tracks in New Mexico offer select bets with notably lower rates (around 15%).
Exotic bets, such as Pick 4, Pick 5, and similar multi-race wagers, generally have much higher takeout rates—commonly north of 30% and sometimes as high as 35% in certain jurisdictions. In contrast, some tracks offer discounted takeout rates for pick 5 or 6 bets to encourage multiple bets.
Takeout rates are pre-payout taxes applied by a horse racing track on every bet made at a race meeting. These rates impact payout odds since horse racing uses parimutuel wagering where the takeout percentage is deducted from the total betting pool before payouts. Final odds fluctuate until betting closes, reflecting how money is distributed across horses and bet types, with takeout rates directly reducing the return to bettors.
Therefore, both the type of bet and the jurisdiction significantly determine takeout rates, influencing potential returns on wagers in horse racing. Exotic bets generally face the highest takeouts (around 30–35%), while some states and tracks offer select bets with notably lower rates (around 15%). Traditional bets have lower takeouts comparatively but vary as well by state.
- In some US states, certain specific bets may have lower takeout rates, such as Del Mar in California offering special wagers at 15%.
- In Louisiana, the takeout rate for regular wagering pools is 17%, but it increases to 19% if the average daily handle is less than $300,000.
- Different states have varying takeout rates for different types of wagers, like Ohio's rates being 17% on straight wagers, up to 28% on multiples, and 25% on exotics, while Michigan imposes an 18% takeout on straight wagers and 25% on exotics for Quarter Horse, Appaloosa, and Arabian races.
